UE Local 1021 members approved a new four-year contract with Kraco Enterprises on March 24 by a two-to-one margin. Over the term of the agreement members will receive $1 in wage increases. They also significantly held the line against the company’s attempt to shift the cost of healthcare premiums onto the workers.
The most contentious issue was healthcare. For the first time in decades, Kraco brought a lawyer to the bargaining table, and the company made it clear that its top goal was significantly shifting of its health insurance costs onto workers. The company said that its premiums had increased 75 percent in the previous four years.
The union’s goals were to hold workers’ out-of-pocket costs and premium contributions at current levels, get a decent-sized wage increase, and protect other existing benefits. There were ten bargaining sessions, and negotiations continued past the January 30 expiration date, with the parties agreeing to a short-term extension of the old contract.
Historically, Kraco workers had an excellent healthcare plan that was fully paid by the company. But the local has gotten smaller as the Compton plant shrunk over the years. Kraco abandoned its former car radio business and gradually moved all manufacturing out of Compton. Kraco is now a manufacturer and distributor of automotive floor mats, and Local 1021 members work in warehousing, repackaging and maintenance. Four years ago local members reluctantly agreed to shoulder 6 percent of the company’s health premium costs, a change that was partially compensated by wage increases.
In this year’s contract struggle, members strongly backed the bargaining committee, and as a result, although bargaining in a tough economy and a very difficult local situation, the union did better than might have been expected.
Wages are increased by 25 cents in each of the four years, with the first raise retroactive to February 1. The union pushed back hard against the company’s initial proposal that workers pay a much higher percent of the healthcare premiums. Instead the union negotiated a formula for employee contributions to premiums in set dollar amounts. Starting July 1, 2010 workers will pay $8.92 a week for family coverage and $13.29 for family coverage. These amounts increase slightly each year, until in July 2013 they reach $20.92 single and $29.30 family. If premiums increase more than the company had anticipated, the company, not the workers, will bear the excess cost. Until July of this year employee contributions will remain at the lower levels of the old contract.
If the company decides to change insurance carriers, contract language will require that the new coverage be “substantially the same” as what exists now, and the union will be able to participate in selecting a new carrier. The union had to give up one holiday (the employee’s own birthday) and a bonus that was paid to workers on certain service anniversaries.
CONTRACT LANGUAGE IMPROVED
The local achieved a number of contract language improvements. Language on Weingarten rights is strengthened so that a worker cannot waive his or her right to union representation during a disciplinary investigation until a steward is present. The union also maintained the current ratio of stewards and union bulletin boards to employees.
Seniority language now explicitly defines what the word “qualified” means and removes the company’s discretion to decide who is “qualified.” Before layoffs can occur, the company will now be required to review its layoff plans with shop stewards.
The company made a determined push to change the “no discrimination” language. It wanted the contract to say that any worker who files a grievance over discrimination is then prohibited from taking the same issue to court. The company was very serious about getting this contract change – but Local 1021 members were just as resolute in refusing to give up their legal rights. It looked like the two sides were headed for a showdown over this issue until the final moments of negotiations, when the company withdrew its proposal.
The union bargaining committee consisted of Javier Aguilar, Gus Martinez and Daniel Navarro. They were assisted by Jose Loza, Luis Hernandez, Local President Conrado Perez, and by UE International Representative Leanna Noble.