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Electrical contract bans movement of operations.

In the electrical equipment industry, Allen-Bradley Co. and the United Electrical Workers agreed on a 3-year contract that included a ban on moving any operations out of Milwaukee through 1987. Another provision designed to protect the earnings of workers allows laid-off workers with recall rights to be reimbursed for 75 percent of tuition expenses for retraining, up to $500 per year. About 1,000 workers are currently eligible for this benefit.

Instead of wage increases, the active employees will receive four lump-sum payments over the term. The first was $200 payable immediately. The other three, payable in December of each year, will equal 3 percent of each worker's wage rate multiplied by the hours worked in the previous 12 months. According to the union, the average wage rate is $10.55. The automatic cost-of-living pay adjustment formula was revised by providing that in both the first and second years the formula will operate only if the Consumer Price Index rises 4 percent. If it does, adjustments will be calculated at the existing rate of 1 cent an hour for each additional 0.2-percent rise in the index. There is no "corridor" in the third year.

In a move to open jobs to laid-off workers, the accord provides that employees age 58 or older retiring during the balance of 1984 will receive an extra $450 a month until age 62. Those 61-1/2 years or older will be guaranteed 6 months of payments.

To minimize premium cost increases for Blue Cross medical coverage, employees will now pay deductible and coinsurance costs. Employees also will be permitted to select from among five other types of health insurance which, the union claimed, offer superior coverage and built-in cost controls.
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Publication:Monthly Labor Review
Date:Oct 1, 1984
Previous Article:Dockworkers settle.
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