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J.I. Case Co. settlement.

Case Co. settlement About 4,700 production, clerical, engineering, and skilled trades workers represented by the United Automobile Workers (UAW) ratified a 40-month contract with the J. I. Case Co. The agreement covers bargaining unit employees represented by several UAW 10locals at plants in East Moline and Hinsdale, IL; Burlington, IA; St. Paul, MN; Southhaven, MS; and Racine, WI. A subsidiary of Tenneco, Inc., Case manufactures agricultural and industrial equipment.

Terms of the agreement include a 3-percent general wage increase and 5 cents per hour for nonincentive ("schedule A" and "schedule B") workers, and a base rate for incentive workers equal to 95 percent of the new schedule A rates, in June 1990; an increase of "at least 3 percent" in February 1992 for both incentive and nonincentive workers (the rate will be adjusted to match any rate above 3 percent negotiated in October 1991 at the Caterpillar Tractor Co. or John Deere & Co.), and lump-sum payments in April 1991 and February 1992 equal to 3 percent of an employee's "qualified" earnings in the preceding 12 months. The cost-of-living adjustment (COLA) provision was maintained. The COLA clause provides for quarterly adjustments equal to 1 cent per hour for each 0.26-point increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. In addition, the $1.21 an hour COLA earned during the prior contract will be folded into the base wage rates, with 40 cents being added in both April 1991 and February 1992 and 41 cents in December 1992.

The monthly pension rate was increased to $26.05 (previously, $23) per year of credited service in June 1990, to $27.45 in April 1991 and $28.85 in February 1992, with increases in December 1992 and April 1993 to be determined when settlements are reached at Caterpillar Tractor Co. and John Deere & Co. The monthly "30-and-out" retirement benefits for current employees retiring before age 62 were increased by $195 to $1,545 in June 1990 and by $100 in both April 1991 and February 1992, with increases in December 1992 and April 1993 equal to the terms reached at Caterpillar and Deere. The pension rate for current retirees on normal retirement was increased by $1 per month per year of credited service in June, while the benefit level for pensioners on "30-and-out" was increased by $30 per month.

Several job security provisions were enhanced. The guaranteed employment leave program, which requires the company to keep employment at a level at least equal to "100% of the current active workforce minus future allowable attrition," was strengthened by setting new protected employment levels at each Case plant. The weekly guaranteed supplemental unemployment benefits made available to employees who are laid off because of weak sales were increased $100 (to $200 for workers receiving unemployment insurance compensation and $250 for those not receiving unemployment insurance compensation). In addition, the UAW strengthened contract language dealing with recall of laid-off employees by negotiating a "stand in the shoes" provision, under which a laid-off employee may be recalled to temporarily fill the job of a worker on short-term leave.

The UAW will be recognized as the bargaining agent for the production and maintenance workers at Case's Wausau, wi, plant if authorized by a majority in the bargaining unit. Other terms include the continuation of the company paid insurance plan; a $2,000 increase (to $30,000) in life insurance coverage in June 1990 and $1,000 in December 1992; a $1,000 increase (to $15,000) in accidental death and dismemberment insurance coverage in June 1990 and $500 in December 1992; a $50 ratification bonus; a penalty on "excessive" overtime (for every overtime hour in excess of 5 percent of straight-time hours, one-third hour will go towards additional paid days off, with a minimum of 11 additional paid day off in 1991 and 2 days in both 1992 and 1993); health and safety improvements, including "no hands in dies"; a 15-cent-per-hour increase in second and third shift premiums (to 60 cents and 65 cents); earlier notification of company plans to shut down for vacation; a new legal service plan, funded by the company at 8 cents per hour worked; and various improvements in health care coverage and benefits.
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Title Annotation:Developments in industrial relations; United Automobile Workers contract
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Sep 1, 1990
Words:706
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