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4 July, 2011
General Electric (GE) workers in America ratified a four-year labour agreement in late June that now sets a pattern for 15,200 unionised GE workers in the US. Members of both ICEM-affiliated United Electrical, Radio, Machine Workers’ of America (UE) and the International Union of Electrical Workers / Communication Workers of America (IUE/CWA), representing 11,500 of those workers, gave approval to the deal in local-by-local voting at some 40 union branches in late June.
The new collective agreement came together on the final expiry day of the past contract, 19 June. (See ICEM news article of 20 June here.) The contract calls for adequate wage, bonus, and retirement provisions over the next four years, but it also contains concessions on health care coverage.
The UE said the new contract “contains some improvements as well as some major deficiencies,” and blamed the deficiencies on a difficult bargaining climate and GE’s anti-union tendencies in the US. Nevertheless, the UE-GE Conference Board of America’s independent union recommended acceptance of the four-year proposal on 23 June.
The IUE/CWA also recommended the agreement. “These were difficult negotiations in a difficult economic climate,” stated said IUE-CWA GE and Aerospace Conference Board Chairman Bob Santamoor. “Members evaluated the package as whole and found it acceptable.” Thirty-four IUE/CWA local branches, representing 7,800 GE workers, voted accumulatively by 70% in separate branch referendums for overall acceptance. The UE did not announce its vote tally.
The agreement calls for a first-year bonus due this month of US$5,000, with benefit increases in proportion to that award. In June 2012, workers will get a 2.25% increase, while in 2013 and 2014, wage hikes of 2.5% and 3% will go into effect. GE will outlay US$76 million for the first-year bonuses.
Union members will receive modest pension benefits over the life of the agreement, and will see an improved cost-of-living formula each year. That benefit represents a 12% improvement over the past formula in inflation protection. The unions also won an additional sick day per year and added vacation days.
Modifications were made regarding the Special Early Retirement Option (SERO), with a window reopener in 2011 for 400 applicants ages 55 to 59 with 30 years of service. A Voluntary Retirement Incentive Payment (VRIP) window was also negotiated for workers 60 years or older.
The health care concession is higher yearly deductibles on medical care and benefit reductions to a co-payment system for health care visits and prescription drugs. These regressive contract changes regarding health care costs bring unionized workers down to levels unilaterally imposed by GE for non-union salaried workers.
Of the majority of 11,500 GE workers represented by the IUE/CWA and UE, the IUE/CWA covers workers at GE Appliance and Lighting Division factories in Louisville, Kentucky, Aviation Division plants in Lynn, Massachusetts, and an Energy Division plant in Schenectady, New York. The UE represents GE Transportation Division workers in Erie, Pennsylvania, and Energy Division workers in Fort Edward, New York. The unions also represent scores of workers at smaller GE worksites that supply products to these bigger factories.
The contract also serves as the template for collective agreements for eight other US unions that represent GE workers.