NEW YORK--The General Electric Company and its two largest unions today announced details of proposed four-year labor agreements that will be voted on by union members by June 28.
The Conference Boards of the 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 President Jim Clark said, "Despite today's manufacturing environment, we have won significant gains for our members, especially in the areas of pension and vacations. Plus, we have held the line against massive health care cost shifting."
IUE-CWA Conference Board Chairman Bob Santamoor said, "This is a historic agreement that improves our members' wages and benefits. I applaud their solidarity in fighting for a fair contract, which is what we have achieved."
GE Senior Vice President for Human Resources Bill Conaty said, "GE is committed to providing good wages and benefits to our employees while maintaining our ability to compete in tough global markets. These agreements provide significant improvements in pensions, deliver strong increases in wages and maintain and improve our healthcare and job security benefits. These agreements are good for employees and good for GE."
New four-year agreements were reached Sunday after four weeks of intense bargaining. Ratification votes will be held by June 28 by members of the IUE-CWA and UE. Terms of the new contracts will be extended to nine other unions that have local contracts with GE.
Among the improvements that will be implemented if the contracts are ratified are:
16% wage growth for union employees
- Provides four general wage increases and eight cost-of-living adjustments that will raise the pay of the average hourly employee 16% over four years. General pay rates will advance 3.0% in June 2007, 2.5% in June 2008 and June 2009 and 3.0% in June 2010.
- Increases pay for night shift differentials for recently hired employees.
- These increases improve outstanding wages for GE production workers, and help keep GE jobs among the best in GE plant communities.
Health care benefits improved
- Expands and protects GE's excellent health-care benefits, including added coverage for preventive care such as routine physicals, screenings and vaccinations. Also, expanded coverage for clinical trials for serious illnesses.
- Adds financial protection for employees and families; raises the lifetime maximum benefit per person 20% to $3 million.
- Reasonably increases employee contributions for health care in 2008 and 2010, with GE's health care benefits remaining among the best in the country in terms of coverage and cost.
Pensions strengthened, contributions reduced
- Improves the two basic formulas used to determine the pension benefits for current employees. For example, in one formula the top benefit rate will increase from $60 to $70 a month for each year of service. In the second formula, many long-service employees will receive a substantial annual benefit update for prior service based on pay from 2001 to 2006.
- Many long service hourly employees can earn pension benefit gains of more than 30% from the effect of wage and pension improvements combined with additional years of service over the contract period.
- Eliminates or reduces mandatory pension contributions for many union-represented employees, adding up to $300 in take-home pay in 2008.
Job and income security enhanced
- Renews the Special Early Retirement Option (SERO), SERO 30 and Plant Closing Pension Option with all pension improvements and higher supplements. These benefit provide retirement opportunities to long-service employees in cases of permanent job loss events.
- Provides two early retirement "windows" for active hourly and non-exempt employees ages 55 to 59 with 30 years of service -- 500 in 2007 and 400 in 2009.
- Increases education and training assistance to $12,500 for those affected by a plant closing.
Veterans Day holiday added, hourly vacation enhanced
- Adds Veterans Day as a new holiday for all U.S. employees beginning in 2007 to further honor veterans within GE and across the country. GE is proud of the support it provide to veterans, including a rich package of military leave benefits for those called to military service, in addition to an enhanced package for those who have been called to active duty since Sept. 11, 2001. GE also has a long tradition of recruiting and employing former military members, Reservists and National Guard members.
- Provides hourly employees hired since Jan. 1, 2006, with an additional week of vacation in 2007.
Retiree pensions to increase
- Following the conclusion of negotiations, GE informed the union leadership that it intends to recommend that the GE Board of Directors authorize a pension increase for eligible retirees who retired on or before June 1, 2003. If the board approves the increase, it would take effect in December 2007. Eligible retirees and surviving spouses would be notified in November of the amount of the increase. The increase will be based on the pensioner's year of retirement and years of service. The largest increases will be provided to those who have been retired the longest.
Eleven unions representing 20,660 GE employees in the U.S. are covered by these agreements. These unions are members of the Coordinated Bargaining Committee (CBC) of GE Unions. National negotiations are conducted with the IUE-CWA and the UE, and local contracts are negotiated with other CBC unions.
The IUE-CWA and its locals represent about 10,030 GE employees at company locations such as Louisville, KY (GE Consumer & Industrial); Lynn, MA (GE Aviation); Schenectady, NY (GE Energy); and Arkansas City, KS (GE Aviation).
The UE represents about 4,050 employees at GE locations such as Erie, PA (GE Transportation); and Fort Edward, NY (GE Energy).
The unions with local contracts with GE are: the International Association of Machinists (IAM); the International Brotherhood of Electrical Workers (IBEW); the United Auto Workers (UAW); the International Federation of Professional and Technical Engineers (IFPTE); the United Steelworkers of America (USWA); Sheet Metal Workers International Association (SMWIA); the International Brotherhood of Teamsters (IBT); the United Association of Journeymen and Apprentices (UA); and Service Employees International Union (SEIU).
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About GE
GE is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
Contacts
GE
Gary Sheffer, 203-373-3476
[email protected]
or
IUE-CWA
Lauren Asplen, 202-549-2735
[email protected]
or
UE
Al Hart, 412-471-8919