AN UNHAPPY MEMORY FROM 2012...

United Launch Alliance Urges IAM Members to Vote in Favor of New Contract

 

DENVER, May 4, 2012 /PRNewswire/ --

United Launch Alliance (ULA) has urged its employees represented by the International Association of Machinists and Aerospace Workers (IAM) to vote this Sunday, May 6, in favor of a new three-year contract.  The proposed contract would cover represented employees located at ULA's production operations in Decatur, Ala., and at ULA's launch operations in Cape Canaveral Air Force Station, Fla., and Vandenberg Air Force Base, Calif.  

On May 2, 2012, ULA presented its final offer to the IAM. The IAM's negotiating committee has recommended that its members reject ULA's proposed contract and vote to authorize the IAM leadership to call a strike.

"We encourage all IAM represented employees to become familiar with the details of ULA's offer and to exercise their right to vote for this contract," said Michael Gass, president and chief operating officer. "This is an excellent contract which recognizes the value and contributions the union employees bring to our mission of delivering critical capabilities for our nation."

The offer provides substantial wage increases and pension increases over the life of the contract. "The proposed contract is fair, competitive and in the best interest of ULA and our employees," Gass said.

"We strongly encourage the union membership to review the proposed contract, see how much the contract has to offer them and their families, and vote in favor of ratifying the proposed contract," he added.

Highlights from ULA's proposed three-year contract include:

Guaranteed pay increases over the next three years through a combination of three general wage increases totaling 8.5 percent over three years
A $5,000 ratification bonus and continuation of the annual cost of living adjustment (COLA) formula and supplements
A regional equity adjustment of $0.50 per hour in years two and three of the contract for Decatur employees
Current employees will retain an excellent pension with substantial increase

Current represented employees and those hired before December 31, 2012, will maintain their defined benefit pension plan with an increase of $3 in year one and an additional $1.00 increase in years two and three. This will bring the pension benefit to $85 per-month, per-year of credited service, representing a 6.3 percent increase in pension benefits. Current employees will also continue to accrue service under this plan as they have under prior agreements.

Employees hired on or after January 1, 2013, receive a new competitive retirement plan:

They will be able to save for retirement with a new defined contribution plan that is part of the ULA 401k Savings and Retirement Plan - the Employer Retirement Savings Contribution, with a guaranteed quarterly company contribution of $350 for their retirement. Employees eligible for the Employer Retirement Savings Contribution have multiple investment options, and can take it with them if they leave the company.

Continued health care coverage with three plan choices:

The Company pays 85 percent of the premium for the Exclusive Provider Organization and Preferred Provider Organization plans and 94 percent for the Health Reimbursement Account plan.

"We are asking the IAM to transition to a new retirement plan for future new hires," Gass said. "This is an important step ULA is taking to remain competitive in our industry and it is what the company has asked salaried employees to do since 2011. The vast majority of companies, including many government contractors and government agencies, no longer offer defined benefit pension plans to new hires."

According to Gass, ULA is taking action to position itself for the future.

"We're making the modifications outlined for newly hired and rehired employees to remain competitive," Gass said. "We're doing this while maintaining and improving the defined benefit pension for current employees.  Under the proposed contract, ULA employees continue to be well paid in comparison to others in the communities where they live and work." 

IAM represented employees are urged to:

   (1) Carefully read the proposed contract to ensure they have a full and accurate understanding of what terms the contract contains;

   (2) Exercise their independent judgment; and

   (3) Vote in favor of the new contract on Sunday, May 6.

Information on the proposed contract is available at:  http://www.ulalaunch.com/site/pages/About_Negotiations.shtml.

 

SOURCE: United Launch Alliance

 

From the IAM ULA 2012 contract negotiations website…

I.A.M. Update on ULA Master Negotiation 2012

 

May 2, 2012

 

UNION NEGOTIATING COMMITTEE UNANIMOUSLY VOTED TO REJECT ULA MANAGEMENT’S SUBSTANDARD FINAL OFFER!

 

At approximately 5:30 P.M. negotiations ended after ULA management made what it called their Company Authorized Final to the Union. Unfortunately, management failed to resolve key issues that our Membership surveys told us were vital priorities to resolve in order to avoid a strike. Among these items were, maintaining our Medical Benefits – Pension Benefits – And Job Security.

 

It is important to note that the final offer presented by ULA management was not presented until almost 48 hours after your negotiating committee had made our latest proposal Monday evening. Make sure you carefully review the ULA Final Proposal regarding the following:

 

Medical Benefits – Management finally placed the EPO medical plan back on the table. However, managements EPO proposal increased the share that members will pay from 11% to 15% and management deleted the premium caps from this plan.

 

As you review management’s EPO medical proposal with no caps, remember this plan is self-funded and subject to management manipulation regarding future premium cost. Your IAM assigned economist has reviewed the 2nd and 3rd year ULA estimated premium increases and reports that true projected medical increases in 2014 and 2015 are estimated to be substantially higher than management is trying to convince members in their final offer.

 

NOTE: Those not already enrolled in the EPO plan are excluded for the full term of the new contract from enrolling.

 

Pension – Management’s final proposal regarding Pension benefits is

unacceptable for several reasons. First, management has proposed to eliminate New Hires and Rehires from the defined pension plan. It is bad enough to eliminate new hires, but by eliminating Rehires, management is forcing Members to stay at ULA or in the future they / you could come back to work for ULA and have no defined pension plan. This is the case even though you were on the active payroll when the pension proposal was voted out. Also, those ready to retire after the new pension increases go into effect, may have to wait because the new pension increases are staggered and the full increase will not go into effect until June 1, 2014.

 

The pension proposal made by management is less than half of the amounts we have negotiated in each of the past 4 collective bargaining agreements. In addition to management saving approximately 85% of the cost for every new or rehired employee, carving these Sisters and Brothers out of the plan may weaken

the pension plan for those members that are allowed to stay in the defined pension plan.

 

THINK OF THE REASONS MENTIONED BELOW:

First is the fact that when more members are out of the defined pension plan than those that are in the plan, this will greatly jeopardize those that thought it was safe to give up the pension for those members not on the active payroll now. Why would someone support keeping the pension for those that prevented them from ever being in the pension plan?

 

Second, at some time in the near future management will be emboldened to go after your defined pension plan, based on their success with this current offer.

 

Third – When the number of members in the plan reaches a certain level of funding this may allow the company to stop the plan and replace the plan with an annuity/insurance policy.

 

Fourth – Eliminating some members from the pension plan NOW, will only encourage management at some point to freeze everyone’s future (additional) benefit increases, even if the plan continues.

 

Fifth – What management is demanding you do now regarding elimination of new hire and rehires – IS JUST WRONG!

 

Work Schedules – Management is still proposing that you agree to allow them to change your shift start time each day, if they so choose, as long as management gives you a 12 hour notification. Changing your start time daily because management cannot properly manage the work schedule will create havoc to our member’s lives outside of work. It will also take away any penalty (pre-shift overtime) to prevent management from having to worry about their responsibilities. Of course this will allow management to save money regarding the payment of overtime; however it will be at you and your family’s expense and way of life.

 

Security Clearance – Members at the launch sites will face being required to obtain NAC-I and SCI clearances. Even though your negotiating committee has negotiated some protection regarding the selection process, those that lose these clearances may still find themselves off the payroll until the government appeals are upheld and/or denied. If the clearance is not re-instated then you would be

terminated with no Union recourse.

 

AGAIN, please carefully review the entire ULA final proposal. There are additional take away through the many language changes proposed by management. This proposal is far less than the current contract, including – Less general wage increases – Far less pension increases – And questionable medical premiums.

 

Even though your negotiating committee was successful in some important areas, there are just too many negatives to justify recommending and/or ratifying management’s Final offer.

 

Therefore, you negotiating committee is recommending that all members reject the ULA offer and vote to authorize your Union leadership to call a strike. This offer is not worthy of the type of work you perform on behalf of the country’s defense.

 

This contract offer will be the document that will control your working life for the Next 3 years. If we are to demonstrate that management cannot disrespect the real work that we perform, we must all speak with one voice and tell these clowns not only NO, but HELL NO!

 

See you all on Sunday, May 6, 2012.

Stay Strong and United

In solidarity,

Negotiating Committee

CCAFS-VAFB-Decatur

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