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ROCKWELL REACHES AGREEMENT WITH UAW IN INNOVATIVE THREE-YEAR PACT

 SEAL BEACH, Calif., July 2 /PRNewswire/ -- Rockwell International Corp. (NYSE: ROK) and the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) reached agreement earlier this week on a new three-year agreement covering 4,000 employees, the company confirmed.
 "This agreement is an innovative approach to addressing competitive concerns of the 1990s and represents a win-win situation for the employees as well as the company," said Kent M. Black, Rockwell executive vice president and chief operating officer.
 The hourly employees covered by this agreement, ratified on June 27, work at Rockwell's California facilities in Los Angeles, Seal Beach, Palmdale, Santa Susana, El Segundo, Long Beach, Anaheim and Downey, as well as in Tulsa and McAlester, Okla.
 "We are confident that some of the contractual changes in the agreement will improve productivity and efficiency, allowing the company to continue to increase customer satisfaction," Black said.
 Those changes include: strengthening and improving the company employee involvement program, a 56 percent reduction in the number of job classifications and the introduction of an innovative "pay-for- knowledge" concept.
 "The employee involvement agreement provides a joint commitment by the employees and the company to work together to reshape processes, work and organizations," Black said. "This maximizes the contribution by all employees in a manner that will improve costs, efficiencies and competitiveness, which should result in increased job security."
 The job classification reduction is expected to generate significant cost savings and productivity gains, as well as placing increased emphasis on on-going education and job opportunities.
 "The training element of the provisions will foster the development and more effective use of employee capabilities," Black said.
 "The overall settlement was structured to mitigate total cost growth during the term of the agreement, thus improving Rockwell's global cost competitiveness," Black added.
 Significant economic aspects of the agreement include annual lump sum payments of 4 percent of the previous year's earnings during the first two years and 3 percent the third year. Medical insurance plans were made more cost-effective and maintained quality by placement in a managed care system. A co-payment provision was added for prescription drugs.
 "The wage improvements realized by our employees will largely be offset by cost savings in other economic areas," Black concluded. "In future years, additional cost reductions will be realized through efficiencies and productivity gains."
 Rockwell International is a multi-industry company applying advanced technology to a wide range of products in its electronics, aerospace, automotive and graphics businesses.
 -0- 7/2/93
 /CONTACT: Bill Blanning of Rockwell International, 310-797-5819/
 (ROK)


CO: Rockwell International Corp.; United Automobile, Aerospace and
 Agricultural Implement Workers of America ST: California IN: ARO SU:


JB-LS -- LA012 -- 8182 07/02/93 13:54 EDT
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Publication:PR Newswire
Date:Jul 2, 1993
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