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Auto workers contract eliminates two-tier pay.

In Texas, Local 848 of the Auto Workers negotiated a 3-year contract with the Vought Aero Products Division of LTV Corp. that revoked or reversed provisions the company had unilaterally instituted 15 months earlier when the prior contract had expired and the parties had reached a bargaining impasse.

From the union's point of view, the feature of the settlement was elimination of a two-tier pay system the company had instituted, under which new workers were to have been permanently paid less than those already on the payroll. Under the settlement, new workers will attain the same maximum rates as incumbents, although it will be accomplished over a period of about 15 years.

Other terms included restoration of a provision for automatic cost-of-living pay adjustments management had terminated; restoration of cuts in insurance benefits; improvements in pensions and other benefits; reinstatement with back pay of 65 union members the company had fired; lump-sum payments at the beginning of the first and second contract years each equal to 2 percent of employee earnings during he preceding 12 months; and a 3-percent pay increase at the beginning of the third year.

The settlement, which covered 3,600 workers was preceded by a 4-hour strike, the first full-scale work stoppage at the division in its 34 years in the Dallas area.
COPYRIGHT 1985 U.S. Bureau of Labor Statistics
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Author:Ruben, George
Publication:Monthly Labor Review
Date:Oct 1, 1985
Words:217
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