United Steelworkers sign four-year deal with Arconic | business

MASSENA — The contract between United Steelworkers and Arconic is a done deal.

During an all-day vote on Wednesday that ended at 8 p.m., members agreed to ratify the four-year treaty from May 16, 2022 to May 15, 2026.

The final balance sheet was not immediately available.

The contract includes workers in Massena; Davenport, Iowa; Alcoa, Tennessee; and Lafayette, Indiana, all voting on Wednesday.

Officials announced on May 14 that they had reached a tentative agreement hours before the contract expired at noon on May 15.

“We have been back and forth with the company several times. Some cooler heads prevailed and we thought we got a pretty good deal,” said Mark A. Goodfellow, President of Local 420-A.

After the tentative agreement was reached, officials met with members of their local unions to exchange details.

“A few people have expressed their opinions about certain things they didn’t like. But overall I think it went pretty well,” said Mr Goodfellow.

The agreement provides for a 7% wage increase for all job groups in May 2022 and a 4.5% wage increase in May 2023, May 2024 and May 2025.

A $4,000 key employee recognition bonus will be paid in two installments – $2,000 on June 9 and 10 this year and an additional $2,000 on January 12 and 13, 2023.

Employees with six months but less than 10 years’ seniority are entitled to two weeks’ vacation under the agreement from June 1, 2022. Martin Luther King Jr. Day on the third Monday in January has also been added as a new paid holiday.

The shift surcharges will be increased from 39 cents to 55 cents per hour for afternoon shifts and from 64 cents to 90 cents per hour for night shifts. The timetable surcharge increases from 30 cents to 42 cents per hour.

The agreement eliminates plant-level performance-based compensation plans in favor of larger pay increases. The pay-for-performance plans were first negotiated in 1993 to replace an underperforming profit-sharing plan. The original goal was to share profits and profits while keeping employees focused on the critical business goals. Part of the payout was tied to the company’s financial performance and part was based on business unit location measurements.

The agreement also improves benefits under the retirement plan for current employees. The pension factors or “multipliers” under the defined benefit pension plans covering employees hired before June 23, 2006 and employees hired on or after June 23, 2006 and before January 1, 2020 were all around $6 per month per year increased service, valid for retirements occurring on or after May 16, 2022. For an employee with 30 years of service, that’s an increase of $180 per month.

The agreement does not include increases in health insurance contribution rates, deductibles, deductible limits or co-insurance. The maximum medical co-payment will increase from $60 to $80 per prescription for non-preferred brand retail prescriptions and from $120 to $150 per prescription for non-preferred brand mail-order prescriptions, effective January 1, 2023.

Employees hired or rehired after January 1, 2020 will no longer be eligible for retirement benefits after retirement. Instead, the retiree health contribution to his 401(k) savings account will increase by 5 cents an hour.

For employees who retired after May 31, 1993, the Company’s retiree health care costs are capped. The cost of retiree health care benefits in excess of the caps will be paid from a retiree health care benefit-in-kind account under the employment contract.

Employees hired or rehired on or after July 1, 2010 are not eligible for retiree health insurance benefits. Instead, they receive a retiree health insurance contribution from the company into their 401(k) savings account. With effect from January 1, 2023, the company contribution will increase to 50 cents from the current 40 cents per hour worked. Effective January 1, 2023, employees hired on or after January 1, 2020 will receive a company contribution of 55 cents per hour to their 401(k) savings account to reflect their ineligibility for retiree life insurance.

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