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Electric Boat Division settlement.

Local 571 of the Marine Draftsmen's Association (United Automobile Workers) and the Electric Boat Division of General Dynamics agreed to a 3-year contract, covering about 1,650 white-collar workers (draftsmen, designers, technicians, and engineers) in the company's Groton, CT, shipyard. The shipyard is the prime contractor for the manufacture of nuclear submarines.

The contract calls for an immediate 4-percent wage increase and 3-percent increases in August of 1991 and 1992. The premium for groups leaders was increased 25 cents an hour (to 50 cents). A "universal design" premium was instituted for top designers who perform a variety of work, set at 25 cents in the first year, 40 cents in second year, and 55 cents in the third year. In addition, the time to reach the top of the wage progression scale was shortened, and the pay rates under the two-tier pay system were compressed.

Regarding health care, in exchange for improvements in medical coverage, employee weekly medical plan copayments were increased from $1 to $3 for single coverage and from $1.23 for married workers without children and $1.43 for married workers with children to $6 for family coverage. The health plan deductible was raised from $100 to $150 for single coverage and from $200 to $300 for family coverage. Lifetime major medical coverage was increased to $500,000 (previously, $200,000) effective in January 1991 and to $750,000 effective in January 1993, with restoration of $10,000 in benefits annually.

Other terms include a $2 increase (from $18) in the monthly pension rate for each year of credited service effective in September 1990 and a $4 increase effective in September 1992 for designers, and comparable $1 and $2 increases (from $18) for all other workers; a $30 increase (to $260) in weekly sickness and accident benefits over the term of the contract; an $8,500 increase (to $33,500) in the maximum pay an employee can invest in the savings plan, with a "one-for-two" company match; and improvements in dental coverage.
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Title Annotation:Developments in industrial relations; General Dynamics Corp. Electric Boat Div.
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Dec 1, 1990
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