General Electric Co.”™s two largest unions endorsed a new labor pact that gives members a 16 percent hike in pay and a possible boost in pension benefits, but which sharply increases what workers pay for health-care coverage.
The Fairfield company reached an agreement in principle June 20 with the industrial division of Communication Workers of America and with United Electrical Workers of America (UE), one day before contracts were set to expire for 21,000 workers, primarily at:
? GE Aviation in Lynn, Mass., and Arkansas City, Kan.
? GE Consumer and Industrial in Louisville, Ky.
? GE Energy in Schenectady, N.Y., and Fort Edward, N.Y.
? GE Transportation in Erie, Pa.
With the apportionment of health-care premiums a major sticking point in negotiations, the unions agreed to a substantial increase by 2010 for premium contributions by members. UE spokesman Stephen Tormey said he could not provide a specific percentage figure for the increases, saying they can range widely depending on the insurance program, pay bracket, and family status of workers.
A representative schedule published for UE members shows health premium increases between 68 percent and 82 percent for employees making between $50,000 and $75,000 in two health-care plans.
“We absorbed some significant cost-shifting onto the backs of employees and we are not happy about that,” Tormey said. “There is no question they were successful in imposing some of the things they wanted to do.”
GE stated the insurance premium increases are reasonable and that the company remains among the best in the country in terms of coverage and cost to employees.
GE agreed to raise the maximum lifetime medical benefit 20 percent to $3 million per person; expand coverage for preventative care such as physicals, screenings and vaccinations; and expand coverage for clinical trials for serious illnesses.
For name-brand prescription drugs, retail co-payments increased from $16 to $22, while mail-order co-payments are rising from $36 to $50. Generic drug co-payments remain unchanged.
GE increased its annual prescription drug ceiling 13 percent to $2,250 for individuals and $4,500 for families.
GE agreed to offer special early retirement options (SERO) this fall for up to 500 U.S. employees who are between the ages of 55 and 59, and who have worked for the company at least 30 years, with seniority determined by who has the most pension benefit service. Another 400 employees in 2009 can take a SERO buyout.
SERO was a thorny issue for the unions given GE”™s record of contracting its U.S. work force in favor of overseas expansion.
GE agreed to consider increasing pensions this December for those who retired from GE before June 2, 2003, but did not immediately specify by how much.
The company also increased training assistance by 25 percent to $12,500 for workers displaced by a plant closure. For employees with families who lose their jobs for reasons other than a closure or transfer of work, GE increased its relocation allowance from $6,000 to $7,000.
GE agreed to expand its family death benefit to same-sex domestic partners.
Hourly employees hired since 2006 are to receive an additional week of vacation, and all U.S. employees will get Veterans Day off in future years, the 12th paid holiday at GE.
