Mt. Pleasant and Greensburg, PA
Members of UE Locals 625 and 626 defeated company attacks on their pension and healthcare, and negotiated new four-year contracts including wage increases. The new agreements were overwhelmingly ratified by the members on October 31. These workers make circuit breakers, and are employed by the multinational electrical equipment manufacturer ABB; Local 625 is the production and maintenance unit and Local 626 represents clerical workers, including drafters.
The locals negotiate separate contracts, but coordinated their efforts to turn back the company’s attack on their benefits. ABB wanted to freeze the defined benefit pension plan for three-quarters of the workforce (those with 15 years or less seniority). This threat united the membership, and the local was able to convince the company that this was a strike issue. Management backed off this demand and agreed to leave the pension alone; unfortunately existing language was also maintained that excludes new hires from the pension.
The company also demanded that employees pay 60 percent of health insurance premiums. The union’s push-back defeated this attack as well; future increases in workers’ share of the premium will be minimal ($3 per week increase per year.)
Wages will increase 2 percent the first year, 1 ½ percent in the second year, and workers will receive 2 percent lump sum in the third and fourth years. The company also agreed to increase its yearly contribution to employees’ 401(k) savings accounts from 2 percent to 3 percent of the worker’s annual earnings. This is in addition to the company’s 50 percent match of employee contributions of up to 6 percent of pay.
The locals negotiated while facing several threats to jobs, including the growing threat from ABB’s Mexico operation. There are also threats from non-union subcontractors and competitors who have reduced wage and benefit packages for their own employees. The locals argued that ABB throws away millions of dollars through waste, abuse and mismanagement – in particular through production interruptions caused by not maintaining supplies of needed parts. The workers wore stickers with phrases such as “Got parts?” and “Pension for all.”
Drafters in Local 626 brought up extreme examples of company waste. Engineers and others had made a big project of designing a metal plate, which is mounted on the side of circuit breakers to display the number one. After developing a drawing, the company spent significant money having contractors machine this part, and then having it shipped and received. The same item could have been purchased at Lowes home improvement store for only $1.50 each.
In the new contract, Local 626 was able to phase out the company’s use of subcontracted labor to performing bargaining unit work at the company’s facilities. Local President John Nemetz said, “By using subcontractors versus hiring UE Local 626 full-time employees, ABB wastes an additional quarter of a million dollars per year.” Chris Pratt, president of Local 625, said he was surprised at how overwhelmingly the members accepted the agreement. In his view, “it’s not great contract, but given the state of the economy, I think we did pretty well and held our own.”
Both UE Eastern Region President Andrew Dinkelaker and International Representative Marion Washington participated in the final bargaining sessions and helped the committees develop their final bargaining strategy. Local 625 was represented in bargaining by President Chris Pratt, Vice President Mark Shaffer, Chief Steward Mark Vidakovich, Financial Secretary Lee King and Recording Secretary Brian Markle. Local 626 was represented by President John Nemetz, Vice President Frank Graham and Recording Secretary Tom Hoburn. Both locals were assisted by UE Field Organizer George Waksmunski.