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Shoe settlement.

The Brown Shoe Co. and two unions (the Food and Commercial Workers and the Clothing and Textile Workers) signed two separate, but similar 3-year agreements, covering some 7,100 production workers at 18 plants in the South and Midwest. The major issues in dispute were pensions, health care, and safety and health. (Brown Shoe is a division of Brown Group, Inc., the largest manufacturer of women's shoes in the country.)

The new contract calls for hourly increases of 20 cents in piece and hourly wage rates on January 27, 1991, and on January 26, 1992, with an additional 10 cents on January 24, 1993, and June 20, 1993. (The average wage rate under the prior agreement reportedly was $5.76 an hour.) Other economic changes include a $7.75 (previously, $7.25) monthly pension rate for each of credited service effective January 1, 1991, $8.25 effective January 1, 1992 and $8.50 effective January 1, 1993; early retirement at age 55 with 25 years of service, with benefits being actuarially reduced; a $15 increase over the term of the contract (previously, $75) in the weekly accident and sickness benefits, up to a maximum of 15 weeks annually; $100,000 (previously, $85,000) combined lifetime maximum benefit for inpatient, home health care, and outpatient surgical benefits effective November 1, 1990, and $110,000 effective November 1, 1992; and establishment of discounted programs with health and welfare providers, with the discounts being equally shared by the company and the employees.
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Title Annotation:Developments in industrial relations; Brown Shoe Co.
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Dec 1, 1990
Previous Article:Cleaning firms' contract.
Next Article:Macy's San Francisco pact.

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