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Budd workers get lump-sum payments.

Budd workers get lump-sum payments

More than 6,000 employees of the Budd Co. were covered by a settlement that provided lump-sum payments rather than the wage increases they had received under past agreements. The first payment was a flat $180 per employee, to be followed by annual payments each April equal to 2 percent of the individual's earnings during the preceding 12 months. In another change, the provision for automatic quarterly cost-of-living pay adjustments was revised to provide for the accrued amounts to be paid in lump sums at the end of each quarter. Previously, the allowance was included in regular weekly paychecks. Also, the entire payment for the third quarter and 2 cents per hour from each of the other quarterly payments will be diverted to help meet the cost of benefits.

Other terms negotiated by the Auto Workers included an additional paid holiday, a $2.05 increase in future retirees' monthly pension rate for each year of credited service and a 50-cent increase for current retirees and two $125 lump-sum payments to current retirees.

The accord also broadened the number of health insurance coverage options and added cost control provisions similar to the General Motors Corp. settlement with the union (see Monthly Labor Review, November 1984, pp. 46-49). The six Budd plants, which produce equipment for the auto industry, are located in Michigan, Pennsylvania, and Ohio.
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Title Annotation:Budd Co.
Author:Ruben, George
Publication:Monthly Labor Review
Date:Jun 1, 1985
Previous Article:Steel workers forgo increases for profit sharing.
Next Article:California Nurses Association settles.

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