- A BNA analysis of collective bargaining data for all settlements through May 28 showed an average first-year wage increase of 1.7 percent, compared with 1.4 percent in the comparable period of 2011. The median first-year wage increase for settlements reported to date in 2012 was 2 percent and the weighted average of 2.7 percent, compared with 1 percent and 0.8 percent, respectively, in 2011. When lump-sum payments were factored into wage calculations, the all-settlements average first-year increase to date in 2012 was 2 percent; the comparable period in 2011 reported a 1.7 percent increase.
- Members of the Service Employees International Union Healthcare (SEIU) Minnesota employed at eight hospitals in the Twin Cities metropolitan area ratified a new three-year contract that will increase their wages by 3 percent. The new contract, which is retroactive to March 1, includes no changes to the workers’ health insurance premiums, despite the hospitals’ efforts otherwise, and includes a third-year increase in workers pensions – the first pension increase for the workers in six years. The new contract covers approximately 3,500 hospital employees, including nursing assistants, emergency room technicians, maintenance and food service personnel, clerks, warehouse staff, and environmental services staff.
- The Air Line Pilots Association reached a tentative agreement with Delta Air Lines on a new three-year collective bargaining agreement covering over 12,000 pilots. If approved, the contract would provide for a 4 percent pay increase upon ratification, followed by an 8.5 percent jump in 2013 and 3 percent increases in both 2014 and 2015. In addition, the proposed contract would result in increased jobs and new opportunities for existing co-pilots to upgrade to pilot positions through expansion and restructuring of Delta’s fleet and a shift of flying from regional carriers to the mainline. Although the proposed contract would reduce the amount of pilots’ profit-sharing on the first $2.5 billion of profits to 10 percent from the current 15 percent, the plan would continue to pay 20 percent of profits on profits above $2.5 billion. Delta announced that it would begin taking delivery of new, leased aircraft as early as 2013, if the tentative agreement is ratified.
- Members of IAM Local S6 ratified a four-year contract with Bath Iron Works (owned by General Dynamics) in Bath, Maine. Under the new contract, workers will receive a $3,000 lump sum payment in lieu of a general wage increase, plus wage increases ranging from 7.5 percent to 8 percent over the contract term. The company will increase contributions to the union pension fund and workers will increase contributions to their health care premiums. The agreement covers 3,200 production and maintenance employees, including pipe fitters, welders, painters, electricians, mechanics, riggers, crane operators, and carpenters.
- Members of the National Nurses Organizing Committee-Florida, an affiliate of National Nurses United, ratified first contracts covering 3,100 registered nurses at 10 Florida hospitals owned by Hospital Corporation of America (HCA), the nation’s largest for-profit hospital chain. The contracts provide for a nurse-to-patient staffing committee, floating assignments guidelines, scheduling provisions, and a grievance procedure. The new contracts also introduce a wage scale with step increases and grades based on years of experience, and establish annual wage increases of 1.75 percent to 4 percent.
- Transport Workers Union (TWU) members in five of the seven separate TWU-represented work groups at American Airlines voted to accept the company’s final contract offer. Members of bargaining units representing fleet service clerks, dispatchers, ground school instructors, maintenance control technicians, and simulator technicians voted in favor of the offer, while aircraft mechanics and store clerks rejected the airline’s final offer. TWU will now seek bankruptcy court approval of the five approved successor contracts, while American will pursue its motion to reject the current agreements.
- Members of the IAM failed to authorize a strike by a two-thirds majority vote, and so a final contract proposal from United Launch Alliance (ULA) became effective despite union members’ earlier rejection of that proposal. The new agreement covers 860 workers working in ULA facilities in three states. Key terms include a $5,000 ratification bonus, as well as general wage increases totaling 8.5 percent over the three-year term. Previously, the IAM bargaining committee unanimously recommended rejection of the contract, objecting to the company’s proposal to switch new hires and rehires out of a defined pension plan to a 401(k) plan, as well as to increased employee costs for health care coverage. The ULA is a joint venture between Lockheed Martin and the Boeing Company.
- Members of Unite HERE Local 25 ratified a five and one-half year contract with the Hotel Association of Washington, D.C., covering 5,000 hotel employees at 18 hotels. The new contract provides for ratification bonuses, increases in hourly wages and pension funding, continues health care without employee premium contributions, and adds successorship language guaranteeing jobs and contract rights upon a change in hotel ownership or management. Additionally, the contract strengthens provisions concerning organizing neutrality and card check provisions.
- Members of Retail, Wholesale, and Department Store Union Local 3 ratified a five-year collective bargaining agreement with Bloomingdale’s Inc., a division of Macy’s Inc. The new contract covers wages and work rules for 2,000 employees at the company’s flagship store in New York City. The new terms provide for wage increases, enhanced benefits, and work rules that give employees more control over hours and scheduling.
- Members of SEIU-UHWW ratified a three-year labor agreement with Daughters of Charity Health Systems. The agreement, which covers 2,600 employees at six California hospitals, replaces an agreement that expired on April 30. The new contract provides 6 percent wage increases and implementation of a defined contribution pension plan.
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Major contract settlements & negotiations
- Winston & Strawn LLP
- June 6 2012
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