On July 30, one day before expiration of their old contract, UE Local 262 members at Madico, Inc. voted to approve a new three-year contract that includes wage increases of 4 percent each year, retirement improvements and increases in other benefits, as well as language improvements and a bonus plan.
There are two kinds of company contributions to the 401(k) retirement plan: a fixed weekly company contribution and a match on employee contributions. The union made gains in both areas. The fixed contribution was increased from $26 per week to $27.50 effective immediately; $28.50 on August 1, 2009, and $29.50 on August 1, 2010. The company match had been 30 cents for each dollar contributed by the worker, up to a maximum of $1,600 per year. That was improved to 40 cents for each dollar contributed by the employee, with the maximum raised to $1,700 this year, $1,800 in 2009 and $1,900 in 2010.
The bonus plan will provide annual lump-sum bonus payments of $500 per employee for each 1 percent by which the actual operating profit margin exceeds 10 percent in the first two years and 11 percent in the third year.
Company negotiators came after increases in employee health insurance contributions. The local was able to back them off their original proposal, and in the final agreement accepted a small increase in employee contributions. For both the Blue Cross/Blue Shield Network Blue HMO Plan and the Blue Cross/Blue Shield Care Elect Plan (for non-Massachusetts residents), current weekly contributions are $26.00 for individual coverage and $41.00 for family coverage. Effective August 1 those amounts increased to $29 for individual coverage, and $45 for family coverage. On August 1, 2009 the levels go to $32 individual and $49 family. On August 1, 2010, weekly contributions become $35.00 for individual coverage, $54.00 family.
There are only two members in the Blue Cross/Blue Shield Blue Choice Plan, and employee contributions will increase more steeply for that plan, compared to the other two BC/BS plans. The company indicated its desire to phase out this plan.
The union increased the safety shoes allowance from the existing $95 to $100; to $105 on August 1, 2009; and $110 on August 1, 2010. Payment for prescription safety increased from the current $125 to $200. Bereavement leave was expanded to allow three days paid leave for the death of a stepparent, stepchild, stepbrother, stepsister, grandparent or grandchild.
The accident and sickness policy (A&S) had paid 70 percent of the employee’s regular wage up to $525. That maximum increased to $575, and will increase again to $600 on August 1, 2009 and $625 on August 1, 2010. The coverage period for the short-term A&S policy was changed from 52 to 26 weeks; at 26 weeks an employee absent for non-occupational illness or injury will be covered by the new long-term disability benefit. This will pay 66 2/3 percent of the employee’s base earnings. The maximum monthly benefit under this plan will be $5,000; the minimum monthly benefit is $100.00. The company will pay the full medical premium for the full 26 weeks of short-term disability and for the first 26 weeks of long-term disability.
Group life insurance increases from $34,000 to: $35,000 - August 1, 2008; $36,000 on August 1, 2009, and $38,000 August 1, 2010. There will be a freeze in the costs of the dental plan for the term of the agreement.
Contract language was changed to clarify bereavement, sick leave, holidays and overtime pay for workers on different shift schedules. Some members work rotating 12-hour shifts, where they are scheduled for 36 hours one week and 48 hours the following week. Others have a workweek of four 10-hour days. Overtime premium pay of time and one half will be paid for the fifth and sixth days worked by a 12-hour employee on a scheduled 48-hour week. During the 36-hour week for a 12-hour worker, time and one half will be paid for the fourth, fifth and sixth days worked.
The language on temporary transfers was amended to allow the company to transfer employees only once during a shift; previously two such transfers had been permitted per shift.
One of union’s demands was that the new contract would be printed within 60 days. The company took many months to publish the last contract. One day after this year’s negotiations concluded, the company provided the union a copy of the contract with the changes already included, ready to be proofread. So this time, shop leaders are optimistic that each member will get a printed copy of the contract in a timely manner.
The negotiating committee consisted of Chairperson Bob Howes, Chief Steward Mike Athridge, Secretary Bill Brown, Steward Gerry Duffy, Steward Paul O’Keefe, Sergeant-at-Arms John Flaherty and Alternate Mike Charros. They were assisted by UE Field Organizer Rachel Clough.