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Jobs guaranteed at Cummins.

Jobs guaranteed at Cummins Enhanced job security was achieved by the independent Office Committee Union in a 3-year agreement for 1,235 office, clerical, and skilled trades workers employed by Cummins Engine Co. in Columbus, Seymour, and Madison, IN. Cummins is a major U.S. manufacturer of heavy-duty truck engines.

Under terms of the new agreement, employees are guaranteed not to be permanently laid off during the first 2 years (the contract defines a permanent layoff as one that exceeds 10 consecutive work days). In the third year, job guarantees are linked to production levels, with the company having the option to reduce the workweek to 35 hours before conducting layoffs. In addition, there is a newly established employee option to take a voluntary leave of absence (up to 10 weeks) in lieu of a temporary layoff.

Other terms include a wage freeze over the contract's term; a $500 lump-sum ratification bonus; the continuation of the quarterly cost-of-living adjustment clause, which provides for 1 cent per hour for each 0.4-percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers; a $1 increase (to $26) in the monthly pension rate for each year of credited service for the first 15 years of service and a $2 increase (to $27) per month of credited service for all years over 15; a requirement that all employees belong to the current preferred provider health care program, with an option to use a nonpreferred provider doctor (currently about 30 percent of the work force belongs to a traditional medical plan or a health maintenance organization); an additional paid holiday (December 23) in 1991 only; and an employee option to take 1 week of vacation a day at a time.

"Developments in Industrial Relations" is prepared by Michael H. Cimini of the Division of Developments in Labor-Management Relations, Bureau of Labor Statistics, and is largely based on information from secondary sources.
COPYRIGHT 1990 U.S. Bureau of Labor Statistics
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1990 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Developments in industrial relations.; Cummins Engine Company Inc.-Office Committee Union
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Oct 1, 1990
Words:320
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