January 2003 UE 506 News

As we go to press, plans are being made for Local 506 to participate in a 2-day UE National Strike this week over expanded GE cost shifting in the Health Care Preferred plan (HCP).

Citing increased HCP co-pays, that became effective on January 1st, and GE’s forewarning that they intend to seek substantially more from us, the UE-GE Conference Board voted unanimously on December 13th to conduct the strike among the 16 different bargaining units. The IUE/CWA, representing GE sites in Lynn, Ma, Schenectady, NY and Louisville, KY, were also making plans to strike. The unified action represents the first national strike against GE since the 102-day strike of 1969-1970 and it is something that many leaders, and members alike, have called for to combat GE.

GE’s attitude regarding the strike notice was nothing less than to be expected. In a statement issued on January 7th, a GE spokesmen was quoted as saying, "the two-day strike will cost union workers, on average $400 in lost pay and benefits", which he said was more than double what they’ll will be paying for increased health care co-payments in 2003.

Technically what the GE spokesman said regarding the immediate situation was true. However, he failed to talk about the tremendous amount of out of pocket expenses and co-pays already shifted on to our backs over the last ten years, including giving up a cost of living increase in the late 1980s to offset increases.

The spokesman also failed to mention that GE is determined to seek more from us. They’ve already shown the hand they intend to play at the 2003 National Contract table and it fully includes an additional 10% shift for all medical expenses we incur, effectively forcing us to pay 30% of the total costs of medical services, supplies and prescriptions.

With GE profits continually on the rise they are well within their means of providing health insurance without shifting further costs onto the workers who make the profits and workers on fixed incomes such as the retirees who built the Company and workers in some disability situations. More than likely GE won’t see it that way; therefore we must continue our resistance and be determined to prevent run away cost shifting.

This is the first official notice that UE Local 506 will conduct nominations for all general offices during membership meetings on February 20, 2003 at the UE Local 506 Union Hall. Times for the meetings are 7:20 a.m. (third shift), 1 p.m. (2nd shift), and 3:20 p.m. (1st shift). Also, during the February meetings, the membership will select alternate-tellers for the General Election. Nominations for the following offices will be taken from the floor at each meeting. They are: Business Agent, President, Chief Plant Steward, Vice President, Local Recording Secretary, Financial Secretary, Treasurer, Executive Board Member at Large (three to be elected), Sergeant at Arms, Trustee (one to be elected) and Alternate-Trustee.

The election will take place on Thursday, March 20, 2003 at the UE Local 506 Union Hall. The polls will be open from 6:00 A.M. to 6:00 P.M. Voting machines will be used for all offices except Executive Board Member at Large, which will be by paper ballot.

Absentee ballots for those members scheduled for temporary military leave will be available on Wednesday, March 5, 2003 at the Union Hall and must be returned no later than Wednesday, March 19, 2003.

By virtue of this election, the Business Agent, President and Chief Plant Steward will be delegates to the District Six Council and to the UE National Convention.

2002 YEAR IN REVIEW

GE WINS NATIONAL AWARD - 2002 events culminated with GE receiving the just distinction of being named "Grinch" of the year by Jobs with Justice. The organization held the second annual election for the national award online between December 3rd and the 18th. The award is given to the candidate voters determine has done the most harm to working families in the past year. This year General Electric garnered the most votes because, despite record profits, the company wants workers’ families, retirees and disabled workers to pay substantial increases for health care.

Increasing Health Care Preferred co-pays wasn’t the only major announcement GE made that affected working families in 2002. In January they sent out a "Warn Act" notice proclaiming 925 layoffs. Adding insult to injury, 225 of the jobs were to be lost through outsourcing.

With that serious matter in front of us, the Local’s Job Preservation Committee was again called upon to help establish and offer proposals to save as many of those jobs as possible. A regular schedule of meetings with the Company was established to give the Local an opportunity to present data and detailed arguments to support keeping the work in the Plant. As a result 167 of the jobs on the outsourcing list were saved.

As for the 600 volume related layoffs, the Chief Divisional Stewards offset many of those losses by taking a good hard look at their areas, not only to build a case where the layoffs weren’t justified but also where stations were undermanned or workers hadn’t been replaced. In our opinion, many members remained on the job because of their involvement of the Divisional Chiefs and Stewards.

With a little help from the negotiated SEROs and a lot of help from the unselfish and collective actions of our members, losses to the street were limited to about 100 members last year, a number far lower than originally projected.

GRIEVANCES - We ended the year with 329 written cases filed and submitted to the second step of the procedure. To see grievance activity that high in past years, you would have to go back to the early 90’s. To handle those grievances, six step two meetings were held in 2002. Five step three meetings were also arranged to argue 56 of those cases that were advanced. As you probably guessed, because of reductions across all job classifications, the majority of the grievances were over job security. We ended the year with approximately 20 docket numbers related to job loses that we have the right to strike over if we find it necessary.

COMMITEE WORK - Membership involvement continued to be the key to advance the Union’s policies and programs during the past year. The Legislative Action Committee worked hard developing questionnaires to determine which candidates, running in the General Elections, best reflected a pro-worker stance.

Last year a committee was formed to review our election practices in order to recommend improvements and help to establish a standing election committee. After ten months of commitment to the project, their recommendations were approved during a special meeting held in November.

Through contributions from many Local 506 members and the involvement of our members on the Community Service Fund Board many charities and social services were able to function last year despite a poor economy. The Sports Committee, although originally created to provide recreational activities for members, also contributed to a number of causes last year. Acting for Local 506as liaisons on community projects, the CSF and the Sports Committee provide an important service for the Union.

FINANCES – With a steep drop in dues payments, caused by permanent and a tremendous number of temporary layoffs, operating revenues were down drastically in 2002. Effective December 1, 2002, a $2.00 per capita increase (per month-per member) to the UE National increased our expenses. Those factors, coupled with inflation, have contributed to deficits in recent months. The contingency fund we established to give us time to make adjustments during poor economic climates has kept us healthy, but it won’t be enough for the long run. The financial officers are currently reviewing the situation and will be making recommendations to the Executive Board in the very near future.

2003 – The UE-GE Contract expires on June 15, 2003. To understand what we need to do to secure a decent contract we have to look back at 2000 negotiations. In 2000 the stewards proved that they are truly the backbone of the Union through their efforts to keep members informed and by relaying the members thoughts and concerns to the officers and Board.

Membership involvement will be critical in the 2003 negotiations as well. Volunteers for special contract projects will be needed and every member will have to make it their business to stay informed, active and ready to do what is asked to secure a decent contract.

We’re sure that all of your elected representatives are up to the task and will provide the best leadership they can using all of the resources at their disposal to keep you informed and plugged into the negotiation process.

First off, no one on the UE negotiating committee has any intentions of letting GE shuck our current pension plan for a cash-balance plan. That said, we’ve had a lot of members call with concerns that they will see their pensions tank if President Bush reopens the door that allows companies a right to dump traditional pension plans in favor of cheaper "cash-balance" plans.

To understand the impact a change in plans could have on us, you should first understand the differences between "Defined Benefit" pension plans, like the GE Plan, and "Cash-balance" pensions.

A defined benefit plan provides a specific benefit at retirement for each eligible employee. In our case, we negotiate the formulas used to determine our retirement benefit.

With a cash-balance plan, employers contribute a portion of pay, typically 4 to 5 percent, to "accounts" that let workers track their balances. But the accounts are not the same as 401(k) s, which require contributions and investment decisions from employees. Instead, employers treat the accounts as a single pool of money and they make all of the investment decisions.

According to an article in AARP’s "The Nation" (July-August 1999), the most striking difference between the two types of pensions, is in how benefits are calculated. With cash-balance plans, the percentage of pay set aside for workers’ pensions basically stays the same year after year. With traditional pensions, accruals typically are lower at first and build up over time as employee’s wages rise. Since defined benefit pensions are based on the average of a worker’s wages in the last few years on the job, plus years of service, older career employees make out much better.

Members worried that GE will attempt to drastically reduce their anticipated retirement benefit can take comfort in knowing that if an employer converts an existing plan to a cash balance plan, Federal law prohibits the company from reducing benefits that participants have already earned. In other words, an employee generally may not receive less than his or her accrued benefit under the plan formula at the effective date of the amendment (change). The US Department of Labor strictly regulates defined benefit plans and the Pension Guaranty Corporation, PBGC, backs those plans.

For more information on Federal Laws and cash balance pensions you can reference material supplied by the U.S. Department of Labor, Pension and Welfare Benefits Administration at www.dol.gov/pwba or contact the Hall and we will be glad to pass copies on to you.

Remember, the UE stands ready to resist any attempt to introduce a cash balance pension plan and we will do everything politically necessary, to try and stop corporations from stripping away workers retirement benefits through these type of hybrid plan.

Claimants entitled to the maximum PA State Unemployment Benefit who open up a new claim after January 5, 2003 will see that their benefit has gone up. It's important to know the new figures so that no one jeopardizes their eligibility for a UC and IEA waiting week. The new compensation amounts are as follows:

Weekly Benefit Amount $451.00 (was $442.00)

Total Maximum Weekly Benefit $459.00 (was $450.00)

To qualify for a UC waiting week you must earn less than the figure derived from adding 40% on top of your benefit. If you are entitled to the maximum UC benefit, the most you can make for a waiting week would be determined as follows:

Weekly Benefit Amount $451.00

SPORTS SHORTS

The Sports Committee plays an important role in our community, and helps to promote our Local by properly showing our members as the caring and concerned citizens they are. The Sports Committee’s focus is to involve fellow union members and their families in various athletic events, and with some of those events, raise money for selected projects.

Most everyone is aware of the various tournaments and races that the sports committee has conducted, but recently they have expanded their involvement by assisting the Erisistable Marathon committee, participating in various charity bowing events and competing and sponsoring benefit softball tournaments. The committee has also volunteered time at the WQLN Auction

Of great importance, and receiving much of the Sports Committee’s attention is the

The National Veterans Affairs Volunteer Services" {VAVS}.

The VAVS is an organization established to help all Veterans Affair medical Centers (VAMC) through volunteer support. Currently, the Sports Committee is assisting the Erie VAVS with their first-ever bowling tournament. The tournament will be held February 23, 2003 at the Eastway Bowl to raise funds badly needed upgrades to the closed circuit TV system. Applications for this event are now available from any Sports Committee member or at the Union Hall. Please join in the fun with our veterans and their families and help a worthwhile cause.

Other notable dates to remember are Sunday, March 16, 2003 for the Saint Pat’s Volleyball Tournament and on Sunday April 6, 2003 members can bowl in the Annual UE Local 506 Bowling Tournament.

The current members of your hard working Sports Committee are: Frank Barnes Building 7, Matt McCracken Building 10, Dennis McLaughlin Building 6, Nancy Morrison Building 18/42, Dave Perry Building 18C, Mark Pierson Building 7, Karen Rubay Building 6 andRoger Zaczyk Building 6.

Delegates to the December 13, 2002 UE-GE Conference Board meeting dealt with two serious matters - the 2003 Contract and support for a CBC National strike action against GE over increased Health Care Preferred (HCP) co-pays.

Regarding the Negotiations, the delegates established a preliminary set of bargaining goals that UE will take to the "Table" in May. Key proposals adopted by the Conference Board include improved pension benefits for current and future retirees and better terms for early retirement. A shift in health care cost back to GE and enhanced Job Security Language were also stated as priorities. A call for a substantial General Wage increase coupled with improvements in the Cost of Living formula and more paid time off topped the list of compensation issues the delegates agreed needed attention.

Local 506 Members are asked to submit contract language and wage proposals

Regarding a National Strike against GE - Citing the HCP increases and GE’s intention to seek substantial cost shifting during the 2003 National Contract negotiations, the Conference Board unanimously approved a resolution calling for a national strike action against GE some time after the first of the year. The resolution states that as UE-GE Unions, "We will seek, insofar as possible, to secure our strike action with those of other CBC unions so as to maximize the impact of our collective action". The resolution concludes, "We do not take this step lightly, but we are convinced that it is a necessary one, not only in response to the HCP changes, but also in the longer run to help safeguard all of our medical insurance programs that we have worked so hard to establish and improve over many years."

Please note that he Local 506 Members voted during the September 26, 2002 Membership meetings to take any action up to and including a strike over the increased HCP co-pays. The Conference Board and CBC’s intent is to conduct a limited action at this time, not an open ended strike that you may be called to act on if GE doesn’t change it’s attitude.

(For the full text of the resolution visit the UE National website at http://www.ranknfile-ue.org or ask your Chief Divisional Steward for a copy.

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