GE, Unions Announce Details of Proposed Labor Contracts
NEW YORK--22 June 2011-- GE and its two largest unions, IUE-CWA and the United Electrical, Radio and Machine Workers of America (UE) today announced details of the proposed four-year labor agreements that will be voted on by union members by June 30, 2011.
Today the Conference Board of IUE-CWA endorsed and recommended the labor agreement for ratification by members. The UE Conference Board will be voting on Thursday, June 23.
IUE-CWA President Jim Clark said, I am pleased that we have negotiated a contract that provides important benefit improvements and limits health care cost shifting to our members.
IUE-CWA Conference Board Chairman Bob Santamoor said, "The voices of our members - joined together in solidarity - were heard loud and clear by the Company. Our focus is on preserving good jobs for our members and securing good jobs for the future. This contract does that."
UE General President John Hovis said, Given the current political and economic climate, its a contract I have no problem recommending. It is now up to our members to decide if it meets with their approval.
GE Vice President John Loomis said, This contract continues to provide excellent pay and benefits to our employees. It keeps the Company competitive and positions us to win orders while helping to retain and create more manufacturing jobs in the U.S.
New four-year agreements were reached Sunday after four weeks of intense bargaining. Ratification votes will be held by June 30 by members of IUE-CWA and UE.
Among the improvements that will be implemented if the contracts are ratified:
Significant wage growth
- An accelerated cash payment of $5,000 to be paid in July 2011
- Three general wage increases of 2.25% in June 2012; 2.5% in June 2013 and 3% in June 2014
- Eight cost-of-living adjustments, which combined with the general increases, yield 12% pay gains
- These increases improve already outstanding wages for GE production workers, and help keep GE jobs among the best in GE plant communities
Valuable pension improvements
- Improves the two basic formulas used to determine the pension benefits for current plan participants
- A Regular Pension Update significantly increases the pension for many long-service employees
- Eliminates or reduces mandatory pension contributions for many plan participants
Job & Income Security protections
- Special Early Retirement Option (SERO), SERO 30 and Plant Closing Pension Option provide retirement opportunities to long-service employees (who are GE Pension Plan participants) in cases of permanent job loss events
- Special Early Retirement Option window opportunity for up to 400 hourly and nonexempt employees (who are GE Pension Plan participants)
- Voluntary Retirement Incentive Payment, a lump sum equal to 75% of pay, for up to 400 hourly and nonexempt employees
- Enhanced Preferential Placement provisions
Affordable health care
- An affordable new plan for union employees
- Expanded coverage and financial protection
- Company-provided funds to help pay for expenses in two of three options
More Paid Time Off
- Additional Vacation and Sick & Personal paid time off for early career employees
The ten unions affected by these tentative agreements represent approximately 15,200 GE employees in the U.S. These unions are members of the Coordinated Bargaining Committee (CBC) of unions representing GE employees. National negotiations are conducted with IUE-CWA and the UE, and local contracts are negotiated with other CBC unions.
The IUE-CWA represents about 7,900 GE employees and its labor agreement covers GE locations including Louisville, Ky. (GE Appliances); Lynn, Mass. (GE Aviation); and Schenectady, N.Y. (GE Energy). The UE represents about 3,100 employees and its labor agreement includes Erie, PA (GE Transportation) and Fort Edward, NY (GE Energy). Contracts negotiated with additional unions at the local level represent the remaining 4,000+ unionized employees.
For more information, visit www.ge.com/negotiations.
About GE
GE (NYSE: GE) is a diversified infrastructure and finance company taking on the worlds toughest challenges. From aviation and power generation to financial services, healthcare solutions, oil and gas and rail, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's website at www.ge.com.
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