NEW YORK--(BUSINESS WIRE)--June 18, 2003--The General Electric Company and union leaders today announced details of proposed four-year labor agreements that will be voted on by union members by June 24.
The Conference Boards of the International Union of Electronic Workers-Communications Workers of America (IUE-CWA) and the United Electrical Workers of America (UE) this week endorsed the labor agreements and have recommended them for ratification by members.
"IUE-CWA achieved its goals," said IUE-CWA President Edward Fire. "At $1.7 billion, this is the richest package ever in the history of collective bargaining with GE. Our members have won improvements in their pensions and wages and have held the line on health-care cost-shifting."
GE Senior Vice President for Human Resources William J. Conaty said, "GE is committed to providing good wages and benefits to our employees. We have put together a strong four-year contract that does just that while addressing our health-care challenges and allowing our businesses to compete in tough markets."
Among the changes that will be implemented if the contracts are ratified are:
Wages
Four general wage increases and eight cost-of-living adjustments are expected to raise the pay of the average employee hourly by 16.5 percent over the term of the contract. General pay rates will advance 3.0 percent in June 2003, 2.5 percent in June 2004, 2.5 percent in June 2005 and 3.0 percent in June 2006. The total net additional pay over the term of the contract will be more than $15,000 for the typical hourly employee.
Health Care Benefits
The new pact expands and protects GE's excellent health-care benefits. Additional financial protection for employees and families includes raising the lifetime maximum benefit 25% to $2.5 million and adding a new co-pay maximum that will provide protection against high prescription drug bills. The annual co-pay maximums will be $2,000 for individuals or $4,000 for families of active employees and pre-age 65 retirees. Above age 65, the new annual co-pay maximum is $1,500 each for retiree and spouse.
Improvements also were made in dental care and preventive care, such as expanded coverage for screenings and procedures. Health Care coverage will also be available for same sex domestic partners.
The contract establishes a three-tier system for determining employee health-care contributions: single; two people; or three or more people. It also proposes increases in employee health-care contributions. The typical employee will pay about $6 more a week in contributions. Because contributions are based on salary, the typical hourly employee will pay about $4 a week more for improved coverage.
The contribution increases will be more than offset by pay increases and other improvements to the overall job package.
Pensions
Major improvements were made to GE pension benefits, including increases in pension tables, formulas and supplements. Key enhancements include an immediate expansion of the Guaranteed Pension table, including raising the benefit rates at every pay level. For example, the top rate will be increased from $40 to $60 per month per year of service. The improvements will increase the pension benefits of many long-service employees 30 to 35 percent over the contract term. An update to the Regular Pension will also boost benefits for many.
The contract will eliminate mandatory pension contributions for most union-represented employees. Required contributions will be eliminated under the contract term for those earning less than $60,000. Eliminating these required contributions will increase take-home pay by approximately $375 a year in 2004 and 2005 and $675 in 2006 and 2007.
Job and Income Security
Early retirement options have been renewed and expanded. The Special Early Retirement Option (SERO) will be renewed. Two early retirement windows will allow 600 union-represented employees to retire early in the fall of 2003 and 420 in fall 2005. This represents a 67% increase in these opportunities compared to the previous contract.
Special Pensioner Payment
Following the conclusion of union negotiations, the company informed union leadership that it will recommend that the GE board of directors authorize an extra "13th month" pension check for GE pensioners who retired before 2002. If approved, eligible retirees will receive the additional pension check in December 2003. Retired executives are not eligible for this one-time payment.
The IUE-CWA represents about 13,000 GE employees at company locations such as Louisville, KY; Lynn, MA; Schenectady, NY; Arkansas City, KS; and Waterford, NY. The UE represents about 3,000 employees at locations such as Erie, PA; Fort Edward, NY; and Ontario, CA.
The terms of these agreements are being extended to 11 other unions that have local contracts with GE. They are: the International Association of Machinists (IAM); the International Brotherhood of Electrical Workers (IBEW); the United Automobile, Aerospace and Agricultural Implement Workers (UAW); the International Federation of Professional and Technical Employees (IFPTE); the Paper, Allied Industrial, Chemical and Energy Workers (PACE); the United Steelworkers of America (USA); Sheet Metal Workers (SMW); the International Brotherhood of Teamsters (IBT); the American Flint Glass Workers (AFGW); the United Association of Journeymen and Apprentices (Plumbers); and Service Employees International (SEI).
GE (NYSE:GE) is a diversified technology and services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE operates in more than 100 countries and employs 315,000 people worldwide.
--30--KK/ny* CONTACT: GE Gary Sheffer, 203/253-9299 or 212/698-8144 or IUE-CWA Lauren Asplen, 202/549-2735