UAW Announces Ratification of New Contract With American Axle & Manufacturing
9 March 2000
UAW Announces Ratification of New Contract With American Axle & Manufacturing
DETROIT, March 8 UAW members at American Axle &
Manufacturing, Inc. (AAM) have ratified a new, four-year national agreement by
more than 81 percent, UAW leaders announced today.
"This 81-percent margin underscores the fact that our bargaining team
successfully addressed the concerns of the members," UAW President Stephen P.
Yokich declared, adding, "We're pleased by the work of our entire leadership
team, national, region and local, that made this new agreement possible."
"This new agreement closely tracks the pattern established in last year's
national auto contracts," said UAW Vice President Richard Shoemaker, who led
the UAW AAM bargaining team.
"We are pleased with American Axle's success as a company and we're
confident that the new agreement provides the means for our members to share
in the success generated by their everyday efforts," Shoemaker added.
The new agreement covers about 7,500 UAW members in American Axle
locations in Detroit, Hamtramck and Three Rivers, Michigan; and Buffalo,
Tonowanda and Cheektowaga, New York.
The four-year contract provides economic gains of more than $29,900 for a
typical American Axle production worker. There will be three percent wage
increases in each year of the agreement. In addition, the agreement provides
for a $1,350 up-front bonus.
The Cost of Living Allowance (COLA) formula was improved by the change
from the previous 1 cent for each .26 change in the Consumer Price Index for
Urban Wage Earners (CPI-W), to a 1 cent for each .25 change in the CPI-W. The
profit sharing formula, which this year produced average profit sharing
payments of about $2,700 per employee, was maintained in the new agreement.
A new job security program was negotiated that provides stronger
protection for UAW members at AAM. It requires new employees to be hired if
employment declines to specific target levels for any reason. In the previous
agreement, new hire obligations were triggered only by net outsourcing actions
during the term of the agreement.
The contract increased the base rate of pensions by $7.45 per month per
year of credited service over the term of the contract. The agreement also
raises the benefit for spouses, including surviving spouses and the spouses of
current retirees, from 60 to 65 percent of the retiree's benefit. The
agreement provides lump sum payments to current retirees in December of the
years 2000, 2001 and 2002.
The 30-and-Out Monthly benefit for workers who retire before age 62 has
been increased by a total of $435 over the life of the agreement. This will
increase the 30-and-Out benefit from $2,295 to $2,730 per month in the fourth
year.
Sixty-nine holidays are provided over the four year term, including first
time holiday observances on Federal election days in 2000 and 2002. Tuition
assistance for the dependent children of UAW American Axle members was
increased from $1,000 to $1,250. A new worker-funded Dependent Care Spending
Account will be set up to enable members to pay for dependent care services
with pre-tax dollars, thus saving money on taxes.
New outsourcing language curtails the use of temporary outsourcing, and a
new letter on "Long Range Product Development" provides for the involvement of
the union in the earliest possible stage of the product development cycle to
assess the impact on the UAW represented workforce and jobs. A letter on
corporate citizenship that will be sent to AAM suppliers by the company will
better protect workers in non-union supplier plants who are seeking union
representation.
Health care benefits are improved with no increases in any co-pays.
Medicare Part B premium payments will be increased, ten new drugs will be
added to the maintenance drug list for chronic conditions, and dental care
allowances will be increased. The health care of young dependents was
addressed through coverage for immunization for childhood diseases and
coverage for wigs for children undergoing chemotherapy.
Health and safety gains included improvements in ergonomics, reduced
exposure to metal working fluids and renewed funds for health and safety
training. A commitment was made by AAM to hire 112 new apprentices over the
term of the agreement and many gains were made for both skilled trades members
and apprentices.
Other improvements were made in the areas of quality processes, legal
services, education and training, civil rights, and new hires.