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Aerospace accord.

The round of settlements in the aerospace industry continued, as the Auto Workers agreed with Rockwell International Corp. on a 3-year contract that included two provisions designed to moderate labor cost increases. One provides that new employees will have to wait longer before attaining the maximum pay progression step for their job grade. The other provides that new workers will not receive quartely cost-of-living pay adjustments during their first year on the job. Thereafter, they will the full adjustment, but will not receive retroactive payment of any lost amount. Both provisions were apparently less detrimental to workers than in some earlier aerospace accords, which called for new employees to be paid less than incumbents in all steps of the progression schedule for their grade and for current employees in lower grades to receive smaller wage increases that current employees in other grades. Two such settlements involved the Boeing Co. and the Machinists and McDonnel Douglas Corp.'s Long Beach, CA, operations and the Auto Workers. (See Monthly Labor Review, December 1983, p. 55, and April 1984, p. 49.)

Other terms of the agreement, which covered 16,000 workers in California, Oklahoma, and Ohio called for annual lump-sum payments in August of 1984 and 1985 equal to 3 percent of earnings during the preceding 12 months; a 3-percent pay increase in July 1986; and a pension rate of $17 a month for each year of credited service effective October 1, 1984, and a $19 rate 2 years later (the prior rate was $15); three $200 lump-sum payments to current retirees over the contract terms; and revision of the health program to give employees a choice among health maintenance organizations, preferred provider organizations, and "Traditional" coverage, with each plan now covering 90 percent of costs (was 100 percent), and to require second medical opinions for surgery.
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Publication:Monthly Labor Review
Date:Sep 1, 1984
Previous Article:Future of collective bargaining probed in ILO report.
Next Article:Airline update.

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