caw-canada/bombardier caw-canada/bombardier bargainingreport

CAW-C ANADA /B OMBARDIER
www.caw.ca
B A R G A I N I N G
R E P O R T
PRODUCTION AND SKILLED TRADES
JUNE 2012
HIGHLIGHTS OF THE TENTATIVE AGREEMENT
BETWEEN CAW-CANADA LOCAL 112
AND BOMBARDIER
HIGHLIGHTS
Pension
Increases
Wage
Improvements
Benefit Gains
Special
Retirement
Incentives
Message from CAW President Ken Lewenza
J
ob security is a huge
concern for workers right
across the country, and our
members at Bombardier de
Havilland are no different.
With continued economic
uncertainty, every worker,
regardless of sector, wants to
be able to know that they
have a job to go to each day, and a way to provide
for themselves and their family.
Preserving the job security clauses in the
agreements was a critical element in reaching a
deal with Bombardier Aerospace in this set of
negotiations. The company was attempting to
remove protection language that locks in
current programs. This would have allowed
Bombardier to move the work on the Dash 8,
Q400 and Global Express, if they chose to. Your
committee would not permit this to happen.
The CAW Local 112 and 673 committees were
ultimately successful in maintaining the current
language in the collective agreement and
locking in the next generation of work.
In this contract, the committees were able to
improve wages, benefits and pensions for active
workers, but also obtain excellent pension
increases for our current retirees – a tremendous
credit to the union’s commitment to improving
the conditions of both active and retired
workers.
I want to thank you for supporting your
bargaining committee. With your solidarity, your
committee was able to reach a first-rate collective
agreement that makes many improvements for
workers at de Havilland.
I join with your bargaining committee in
recommending ratification and urging you to
vote in favour of this tentative agreement.
Message from Merv Gray, Plant Chairperson, CAW 112
F
www.caw.ca
ollowing a difficult
round of negotiations,
your bargaining committee
was able to negotiate
improvements in key areas
of the collective agreement.
From the onset of
bargaining, the company
had demands to eliminate
eligibility for retiree health care benefits. These
demands have been rejected. In spite of the
company’s demands, I’m pleased to report that
this agreement includes improvements in wages,
benefits and pensions, including increases for
current retirees.
Of primary importance was the continued
inclusion of our existing commitment to
programs and language reflecting the work on
the Global 7000/8000. While the improvements
are not identical to those we may have enjoyed in
previous rounds, they do represent significant
improvements given the current economic
climate.
Your bargaining committee unanimously
recommends acceptance of this three-year
tentative agreement.
PROPOSED PRODUCTION AND SKILLED TRADES BASE RATE INCREASES
Wage
Group
5
6
7
8
9
ST1
ST2
ST3
Current
Level 3
Base Rate
Cola
Fold-in
$30.98
$31.25
$31.83
$32.42
$33.58
$35.10
$35.44
$35.93
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
FIRST YEAR
Skill
Adjust
June-12
$0.15
$0.35
$0.35
$0.35
New Level 3
Base Rate
Jun-12
$32.15
$32.27
$32.85
$33.44
$34.60
$36.47
$36.81
$37.30
SECOND YEAR - 1.75%
THIRD YEAR - 2%
General New Level 3
General New Level 3
Increase
Base Rate
Increase
Base Rate
Jun-13
Jun-13
Jun-14
Jun-14
$0.56
$32.71
$0.65
$33.36
$0.56
$32.83
$0.66
$33.49
$0.57
$33.43
$0.67
$34.09
$0.59
$34.03
$0.68
$34.71
$0.61
$35.21
$0.70
$35.91
$0.63
$37.10
$0.75
$37.85
$0.64
$37.45
$0.75
$38.20
$0.65
$37.95
$0.76
$38.71
TOTALS
Total
Increase
Projected
Cola**
Total
Increases
$1.37
$1.22
$1.24
$1.27
$1.31
$1.73
$1.74
$1.76
$1.10
$1.10
$1.10
$1.10
$1.10
$1.10
$1.10
$1.10
$2.47
$2.32
$2.34
$2.37
$2.41
$2.83
$2.84
$2.86
**Inflation is projected at 1.75% in yr 1, 2% in yr 2 and 2% in yr 3 of the agreement. COLA may be higher or lower depending on actual inflation.
The June 2012 COLA adjustment of $.22 per hour will be paid as a float effective the first pay period following ratification.
PENSION
EXAMPLES: INCREASES IN EARNINGS
Current Earnings
AIRCRAFT
ASSEMBLER (591)
TOOL AND DIE
MAKER (ST3)
$32.00
includes $1.02 COLA
$36.95
includes $1.02 COLA
1ST YEAR INCREASE
skill adjustment
$0.15
*estimated COLA
$0.26
End of 1st year
2ND YEAR INCREASE
general increase
$0.56
*COLA
$0.42
End of 2nd year
3RD YEAR INCREASE
General Increase
$0.65
*COLA
$0.42
End of 3rd year
$0.35
$0.26
$32.41
$37.56
$0.65
$0.42
$33.39
$38.63
$0.76
$0.42
$34.47
TOTAL INCREASES
general increase
$1.22
*COLA
$1.10
Skill adjustment
$0.15
$2.47
$39.81
$1.41
$1.10
$0.35
$2.86
EXAMPLE, SINGLE MEMBER, AGED 60
WITH 30 YEARS CREDITED SERVICE
MONTHLY PENSION, PRODUCTION
ESTIMATED PENSION,
$62
$68
$
%
AGE 60 TO 64
Current New Agreement Increase Increase
Basic Benefit
$1,860
Early Retirement
Supplement
$570
$2,040
$180
$570
$0
Total Company Pension $2,430
$2,610
$180
With Early CPP ($678*) $3,108
$3,288
9.7%
7.4%
Estimated annual
Pension ages 60-64
$37,296 $39,456
AGE 65 AND BEYOND
Current New Agreement Increase Increase
Total Company Pension $1,860
$2,040
Canada Pension (CPP)* $678
$678
Old Age Security Pension* $540
$540
Total monthly Pension
$3,258
$3,078
Estimated annual Pension
age 65 and beyond
$36,936 $39,096
$2,160
$180
5.8%
$2,160
5.8%
*CPP and OAS pensions estimated at 2012 maximum rates. CPP and
OAS are indexed to inflation.
PENSION IMPROVEMENTS
HEALTH CARE BENEFITS
BASIC BENEFIT
The Basic Pension Benefit increases by a total of $6 per month per year of credited service over the life of this agreement:
Current Agreement:
New Agreement:
July 2012:
$62
$68
2 YEARS OF PENSION INDEXING FOR CURRENT RETIREES AND SURVIVING SPOUSES
Effective January 1, 2013 and January 1, 2014 the monthly Basic Pension of members retiring prior to June 23rd 2012 will be adjusted by
70% of the increase in the cost of living, to a maximum of 3% per year. These increases will also apply to surviving spouse pensions.
SKILLED TRADES PENSION INCREASE
Effective July 1 2013 the Basic pension benefit for skilled trades workers who retire on or after June 23rd 2012 will increase by an
additional $1.
HEALTH CARE
HEALTH
BENEFITS
CARE BENEFITS
EFFECTIVE DATES:
All new coverage and benefit
amounts take effect the first day of
the month following ratification,
unless otherwise noted.
• Low blood pressure and
diabetes have been added to
the
medical
conditions
eligible for surgical support
stockings.
PARAMEDICAL SERVICES
VISION CARE
• Maximum
reimbursement
under the vision care plan will
increase by $20 per category
to the following:
•
•
•
•
Single vision:
Bifocal:
Multifocal:
Contact lenses
$230
$250
$270
$195
MAJOR MEDICAL
• The
reimbursement
for
medical forms will be
increased from $20 to $30 per
form.
OTHER MEDICAL SERVICES:
• The land ambulance expense
benefit has been increased
from $60 to $70 per trip, up to
a maximum of $275 per year.
• Coverage
for
medically
necessary wigs has been
increased to $600.
• The
combined
annual
maximum for paramedical
services (excluding Massage
Therapy) has been increased
from $600 to $650.
PHYSIOTHERAPY
• Coverage has been increased
up to $160 for the initial visit
(@80%) and $100 for
subsequent visits (@80%).
DRUG PLAN
• The drug formulary date has
been adjusted to 2009.
DENTAL PLAN
• The annual maximum under
the dental plan has been
increased from $1,900 to $2,000
per year, effective July 1 2012.
• The one year lag on the ODA
fee schedule has been
maintained.
WORK COMMITMENT
Language concerning the commitment to
the Global 7000/8000 has been
incorporated into this agreement.
VACATION
Now members have more options for
taking vacation in one day increments.
PAID HOLIDAYS
• Paid holidays include time off for
Family Day.
• An additional paid holiday in the first
year of the collective agreement.
OVERTIME GUIDELINES
Language included improving ability to
enforce overtime equalization.
OFF SHIFT POSTING
Additional notice time will now be
required for the posting of shifts.
SAFETY SHOE ALLOWANCE
The safety shoe allowance has increased to
$125.
TRAINING
Training has been enhanced and will
address concerns regarding stress and
mental health.
UNION REPRESENTATION
RESTRUCTURING
T
he Restructuring provisions and Special Voluntary Retirement
Allowance provisions of the collective agreement have been renewed.
Improvements have been made in the area
of union representation:
• increased
Health
Representation;
and
Safety
The letter providing for the payroll pension top-up for employees retiring under
the Special Early Retirement provisions of the pension plan has been renewed.
• language improved
clearances;
SPECIAL RETIREMENT INCENTIVE
• hours of representation for the
Women’s Advocate have been
increased.
T
he union has negotiated a total of 50 packages to be offered to retirement
eligible Local 112 members within 60 days of ratification. The retirement
packages will be made available plant wide on an election by seniority basis.
Employees retiring under this offer must retire within 90 days of ratification,
subject to requirements for the transfer of skills and knowledge. The amount
of the retirement allowance offered under the program is $40,000.
for
alternate
GRIEVANCE PROCEDURE
A mechanism has been included in order
to ensure members’ issues are addressed in
a more expeditious manner.
SKILLED TRADES
Progress has been made for skilled trades
members in this round of negotiations including:
Work Ownership
• Enhanced work ownership language for
machinist classifications.
Apprentices
• Commitment to the hiring of additional/new
apprentices.
TERM OF THE AGREEMENT:
June 23, 2012 to June 22, 2015
GROUP INSURANCE
SICKNESS AND ACCIDENTS
BENEFITS
• Coverage will now be provided for up to
1 day for colonoscopy.
EXTENDED DISABILITY BENEFITS
• The monthly extended disability benefit
increases by $50 per month, from $1,750
to $1,800, for disabilities occurring on or
after July 1, 2012.
LIFE INSURANCE AND AD&D
• Effective July 1, 2012 life Insurance
coverage increases from $70,000 to
$75,000 and AD&D increases to $37,500.
PAID HOLIDAY SCHEDULE
HOLIDAY
2013
2014
2015
NEW YEAR'S DAY
Tues., Jan. 1
Wed., Jan. 1
Thurs., Jan. 1
FLOATER
Mon., Feb. 18
Mon., Feb. 17
Mon., Feb. 16
GOOD FRIDAY
Fri., Mar. 29
Fri., Apr. 18
Fri., Apr. 3
Mon., May 18
Mon., May 20
Mon., May 19
Mon., Jul. 1
Mon., Jun. 30
Mon., Sep. 3
Mon., Sep. 2
Mon., Sep. 1
THANKSGIVING
Mon., Oct. 8
Mon., Oct. 14
Mon., Oct. 13
FLOATER
Mon., Dec. 24
Tues., Dec. 24
Wed., Dec. 24
CHRISTMAS DAY
Tues., Dec. 25
Wed., Dec. 25
Thurs., Dec. 25
BOXING DAY
Wed., Dec. 26
Thurs., Dec. 26 Fri., Dec. 26
FLOATER
Thurs., Dec. 27
Fri., Dec. 27
Mon., Dec. 29
FLOATER
Fri., Dec. 28
Mon., Dec. 30
Tues., Dec. 30
FLOATER
Mon., Dec. 31*
Tues., Dec. 31*
Wed., Dec. 31*
VICTORIA DAY
CANADA DAY
Mon., Jul. 2
FLOATER
Tues., Jul. 3
LABOUR DAY
RECOMMENDATION
OFF SHIFT PREMIUM
The off shift premium increases by $.20 in
the 2nd year of the agreement, to $1.40
per hour.
2012
Your Master Bargaining Committee unanimously recommends
this tentative agreement and urges you to vote in favour of it.
YOUR CAW-CANADA LOCAL 112
MASTER BARGAINING COMMITTEE AT BOMBARDIER
KEN LEWENZA
CAW National President
PETER KENNEDY
National
Secretary-Treasurer
JERRY DIAS
Assistant to
the President
DAWN CARTWRIGHT
Aerospace Director
JEFF WAREHAM
National Representative,
Pensions & Benefits
PAT BLACKWOOD
Director
of Skilled Trades
ROLAND KIEHNE
President
CAW Local 112
MERV GRAY
Plant Chairperson
Bombardier
PHIL FRYER
Skilled Trades
Representative
JIM BECKETT
Bargaining Committee
Local 112
BILL BELL
Bargaining Committee
Local 112
BOB HAMILTON
Bargaining Committee
Local 112