- Delta Airlines and the Air Line Pilots Association ratified a three-year contract covering 12,000 pilots. The contract increases pay by a total of 18.5 percent through 2015, starting with an immediate four percent increase, followed by an 8.5 percent increase and three percent increases in subsequent years. The contract also includes productivity enhancements, a modified pilot profit-sharing program whereby the current 15 percent profit sharing is reduced to 10 percent on the first $2.5 billion but would continue to be paid at 20 percent on profits over $2.5 billion, an extended voluntary early retirement program, and a 1 percent increase to pilots’ retirement plans.
- Members of the Communications Workers of America (“CWA”) ratified a four-and-a-half year agreement with Piedmont Airlines, based out of Tempe, Ariz. The agreement provides workers with a six to eight percent signing bonus, increases annual wages by four percent, raises wage caps by 25 cents per hour, provides $500 longevity bonuses to employees there more than five years, limits health care cost increases to one percent per year starting in 2015, and provides annual lump-sum payments of two percent starting 2013.
- Members of the National Nurses Organizing Committee-Missouri ratified a three-year contract with the Research Medical Center. The contract creates a professional practice committee run by elected nurses, a policy modifying nurse-to-patient staffing levels based on acuity that is enforced by a committee of nurses and management, wage increases from 10-22 percent determined by years of experience, and an additional step for nurses with greater than 16 years experience.
- Members of the SEIU-United Healthcare Workers West ratified a four-year contract covering approximately 14,000 California employees with Dignity Health. The contract goes into affect May 2013 and provides a two percent wage increase, step wage increases for eligible employees, health benefits and pensions, and creates an expedited grievance procedure and a wellness program.
- United Farm Workers and California tomato farming company Pacific Triple E entered into a three-year contract covering 800 workers. The contract provides tomato pickers with $8.50/hour minimum wage, the option of additional compensation based on piece rate, an increased piece rate of $1.05-$1.18 for every two buckets of picked tomatoes and increases of two cents and one cent in the second and third years of the contract, respectively. The contract also provides a three percent increase in the minimum wage in the second and third years of the contract. Workers who take buckets and dump them in trailers receive a pay increase of $70 to 80 per day to $106, and a pay increase of three percent in the second and third years of the contract.
- Montana’s United Food and Commercial Workers (“UFCW”) Local 4 and Local 8 ratified over 52 contracts with grocers, including Albertsons, Safeway Inc., Van’s Thriftway, and IGA Inc., as well as smaller stores. The 41-month contract covers 1,700 workers in 40 stores in Montana and increases wages by 25 cents per hour, increases bonuses, maintains pension benefits, and increases employees’ contributions to health insurance by $10 and $20 for individual and family plans, respectively.
- AT&T Inc. and International Brotherhood of Electrical Workers (“IBEW”) agreed to extend their existing contract, covering 7,000 workers mostly in Illinois and Indiana, for one year without any modifications. A previous proposal was rejected that increased wages, provided a signing bonus, increased employees’ health care premiums, provided a moratorium on workforce surplus or layoffs, and perpetuated no-strike and no-lock-out terms.
- AT&T and CWA reached a tentative agreement that would cover 13,000 workers in the Midwest, including 5,700 technician representatives. The three-year contract provides an eight percent wage increase, an increase pension plan multiplier by three percent, an increase in employee contribution to health care to 23.5 percent, workers’ rights to transfer, flexible scheduling, and seniority.
- The Utility Workers Union of America Local 369 ratified a contract with Entergy Corp, owner of Pilgrim Nuclear Power Station. The four-year contract comes after two rejected offers and ends a month-long lockout. It provides wage increases, benefits, health care, 401(k) matching, a pension plan, and a union incentive plan.
- The Alliance of Motion Picture and Television Producers and members of the International Alliance of Theatrical Stage Employees approved a new three-year contract covering more than 38,000 members. The contract provides two percent wage increases annually, increased employer contribution to health coverage, as well as employee contribution to health coverage.
- American Airlines and the Transport Workers Union reached tentative agreements for maintenance, mechanics, and other ground workers. The agreements extend six years and include a three percent wage increase for maintenance and related workers and 3.5 percent for store workers, increased health coverage, and market readjustment. Union members will vote on the tentative agreement prior to the U.S. Bankruptcy Court for the Southern District of New York’s anticipated ruling on American Airlines’ requested rejection of all standing labor agreements.
- Members of UFCW Locals 5, 8, and 648 and Save Mart supermarkets reached a tentative contract covering 173 Save Mart and Lucky stores in northern and central California and 11,000 workers. The agreement keeps affordable healthcare and secures hours for full-time positions.
- The UFCW Local 400 ratified an agreement with Shoppers Food Warehouse Corp., owned by SUPERVALU. The two-year contract covers approximately 2,500 employees in the Washington D.C. area, including front-end, meat, deli, and produce workers. The contract increases wages by 15 to 25 cents an hour in increments of five cents applied based position, and increases bonuses. It also keeps employees’ contribution to health care premiums at $5, $10, $15, or $25 per week for individual, couples, family, and those hired before 2004, respectively. Further, the contract maintains pension benefits and increases employer’s contribution to pension benefits.
- Continental Airlines and the AFA ratified a new contact covering about 10,000 flight attendants. The contract provides $1,500 signing bonuses, profit-sharing opportunities, furlough protection, flexibility regarding terms of check-ins, sick leave, and assignments. It also establishes a labor-management partnership that requires the company and union members to meet every month to resolve issues.
- The SEIU Local 32BJ ratified a contract with Admiral Security Services, Inc., AlliedBarton Security Services, and Securitas Security Services USA Inc., covering 1,700 private security officers, in Washington, D.C. and extending four years. The contract provides three percent wage increases each year and an immediate 40 cents per hour increase, and maintains employer-paid health benefits.
- United Auto Workers (“UAW”) Local 3303 ratified a contract with AK Steel Corporation’s Butler Works extending four years and covering 1,250 maintenance employees in Pennsylvania. The new agreement reportedly continues to provide a competitive and flexible labor contract. The current contract does not expire until September 30, 2012.
- American Eagle reached a tentative labor agreement with the AFA covering about 1,750 American Eagle flight attendants, which reportedly will not cut pay or freeze wages. Provisions of the tentative contract will be disclosed, if approved by the AFA’s executive council, prior to the membership’s ratification vote. American Eagle management and the AFA had been negotiating an agreement for months, following parent company AMR Corp.’s, filing for Chapter 11 bankruptcy protection, rather than being subject to imposition of contract terms by the bankruptcy court. American Eagle management and the carrier's pilots, represented by the Air Line Pilots Association, are still in contract negotiations.
- Members of Transport Workers (“TWU”) Union Local 721 ratified an eight-and-a-half year first contract with Caesars Palace. The contract covers more than 500 dealers at the Las Vegas casino. The agreement comes five years after Caesars Palace dealers voted for representation by TWU, for continuation of employer-paid health care, other workplace protections, as well as a grievance and arbitration procedure, protection through a progressive discipline and discharge policy, secure health benefits, and recall rights for laid-off workers. Caesars dealers will continue to be paid the hourly statutory minimum wage, and the Caesars contract does not introduce a tip-sharing policy, such as that covering Wynn dealers (the one other labor contract in Las Vegas covering dealers also represented by the TWU). The contract, however, does leave the door open for negotiations to include a tip-sharing policy.
- A BNA analysis of collective bargaining data for all settlements YTD through July 23 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 two percent and the weighted average of 2.3 percent, compared with one percent and 1.3 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 2.1 percent; the comparable period in 2011 reported a 1.7 percent increase.
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Major contract settlements & negotiations
- Winston & Strawn LLP
- July 31 2012
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