Settlement reached in GM parts plants.
Terms were similar to those in GM's settlment with the United Auto Workers (see Monthly Labor Review, December 1984, pp. 46-49), except that the IUE agreement provides for more paid time off, which the union said was a high priority for the workers employed by GM's Delco, Packard Electric, and other parts plants. Under the IUE agreement, the paid absence allowance was increased to 9 work days in the first contract year and 8 in the second. In the third year, the employees will receive 5 paid absence days, the same as in each year of the prior agreement, which had a 2-year term. (In contrast, the new 3-year UAW-GM contract continued to provide for 5 paid absence days per year.) In exchange for the improved paid absence provision, the IUE agreed to offsetting changes in other provisions: the initial wage increase (2.25 percent) was not retroactive to the September 14 termination date of the prior agreement; 11 cents of the existing cost-of-living allowance was not rolled into base rates; 14 cents will be diverted from future cost-to-living adjustments for the contract duration; and increased company payments into a training fund and establishment of a legal services plan were deferred to 1987.
The plants covered by the settlement are located in Ohio, Mississippi, New York, and New Jersey.
One of the plants, a Packard Electric Division operation in Warren, OH, agreed to give members of Local 717 virtually lifetime job and income guarantees in exchange for adoption of a two-tier compensation system. Under the system, the company is permitted to hire new employees at 55 percent of current pay for their job and to give them less lucrative benefits. The pay for their job and to give them less lucrative benefits. The pay of these workers will rise gradually over 10 years until it matches the regular rates. The contract, which will be in effect indefinitely, obligates the company to hire one new worker at the plant for every three who leave through attrition.
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|Publication:||Monthly Labor Review|
|Date:||Feb 1, 1985|
|Previous Article:||Aerospace settlements.|
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