Electrical contract bans movement of operations Essay

In the electrical equipment industry, Allen-Bradley Co.

and theUnited Electrical Workers agreed on a 3-year contract that included aban on moving any operations out of Milwaukee through 1987. Anotherprovision designed to protect the earnings of workers allows laid-offworkers with recall rights to be reimbursed for 75 percent of tuitionexpenses for retraining, up to $500 per year. About 1,000 workers arecurrently eligible for this benefit. Instead of wage increases, the active employees will receive fourlump-sum payments over the term. The first was $200 payableimmediately. The other three, payable in December of each year, willequal 3 percent of each worker’s wage rate multiplied by the hoursworked in the previous 12 months. According to the union, the averagewage rate is $10.

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55. The automatic cost-of-living pay adjustmentformula was revised by providing that in both the first and second yearsthe formula will operate only if the Consumer Price Index rises 4percent. If it does, adjustments will be calculated at the existingrate of 1 cent an hour for each additional 0.2-percent rise in theindex. There is no “corridor” in the third year.

In a move to open jobs to laid-off workers, the accord providesthat employees age 58 or older retiring during the balance of 1984 willreceive an extra $450 a month until age 62. Those 61-1/2 years or olderwill be guaranteed 6 months of payments. To minimize premium cost increases for Blue Cross medical coverage,employees will now pay deductible and coinsurance costs. Employees alsowill be permitted to select from among five other types of healthinsurance which, the union claimed, offer superior coverage and built-incost controls.


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