UAW Overwhelmingly Ratify New National Agreement with Guide
30 March 2000
UAW Members Overwhelmingly Ratify New National Agreement with Guide Corporation
DETROIT, March 29 By a 95 percent margin, UAW members at
the Guide Corporation have ratified a new, four-year national agreement, UAW
leaders announced today.
"This overwhelming ratification margin is proof positive that UAW members
at the Guide Corporation are satisfied with the work of the leadership team
that negotiated this fine contract," UAW President Stephen P. Yokich declared.
"I'm pleased that our members at Guide Corporation will continue to enjoy
wages, benefits, and workplace improvements that track the pattern established
in last year's national auto contracts," said UAW Vice President Richard
Shoemaker, who led the UAW bargaining team in Guide negotiations.
"The negotiations took place in a professional and positive manner,
leading to an outcome that is good for both the UAW and the Guide
Corporation," Shoemaker added.
The new agreement covers about 2,000 UAW members in UAW Local 663 in
Anderson, Indiana and about 700 members in Local 1977 in Monroe, Louisiana.
The four-year contract provides economic gains of more than $29,900 for a
typical Guide 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 Agreement (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 was maintained in the new
agreement.
A new job security program was negotiated that provides stronger
protection for UAW members at Guide. 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.
Historic gains were made for current and future retirees. The contract
increased the base rate of pensions for current retirees 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 Guide 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 all Guide suppliers by the company
will better protect workers in non-union supplier plants who are seeking union
representation.
Many health care benefits were 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. Adults who participate in a Paid Provider
Organization (PPO) will be covered for tests used to detect high cholesterol
and various cancers. Ground ambulance service coverage has been expanded.
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. Emergency evacuation plans for each facility will be established
and noise abatement committees will be formed to work on reducing noise
levels. UAW members have gained the right to request a review of work that
they believe may result in serious physical injury or illness, prior to
performing the work.
A commitment was made by Guide to hire 38 new apprentices over the term of
the agreement. Improvements in health and safety, training, and tool
allowances were among gains 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 protection, diversity
initiatives, and COLA improvements for new hires.