Pension, Sick leave, Wage and Health details
Pension
First, no one loses the pension. Whatever benefit you have will continue. If you were looking at a pension of $15,000 a year, you still have that. If you were looking at a pension of $45,000 a year, you still have that.
But there is a question of what happens next. The Company and the Union will have up to one year to seek a merger with a larger, multi-employer plan. The Company and the Guild are committed to make it happen as soon as possible. Our pension plan is well funded and we don’t think it will be difficult to find someone to “marry” us. We have $190 million in assets. That’s attractive.
If we merge into a multiemployer plan, it will be a Union plan and we will be negotiating over getting it as close to our present system as possible.
Once the merger is settled, we face the cost to each member of paying his/her share of the pension contribution. Up to now, the Company has put the money in for us. This money is equal to about 8% of each person’s salary. The Company will be cutting off that money as of Dec. 31. We will have to make it up once we are in a new plan. We, however, will continue to earn service credit for 2007. To help with the transition to another plan, the Guild negotiated a $4 million contribution from the Company. This money will be used to offset the initial contributions that will be required. Eventually, it will be done from diversions from our paychecks.
If no merger can be completed during 2007, the pension plan will be frozen, which means that the benefit stays as is but it will not increase and no new people can be added to the plan. In that case, the Guild will be looking to divide the $4 million to put into individual 401(k) accounts. This process will depend upon a number of factors to be determined if we learn that merging with a multi-employer plan is not possible. However, we believe we are a good merger partner and we aim to do whatever it takes to make that happen.
Sick Leave
Previously, sick pay was paid at 100 percent, for up to 40 weeks, with the specified number of weeks an employee received based on Article 21.1 of the Main Unit Agreement. Now the maximum sick benefit will be up to 40 weeks at 65 percent of pay.
Benefits begin, at 65 percent of pay, on the 1st day of absence in the case of an injury or hospitalization, and, at 65 percent of pay, on the 4th day of absence in the case of illness.
By this language, employees would not be paid for their first three days of illness.
However, each employee is entitled to at least 3 sick days paid at 100 percent per year.
These paid days come in the form of a “pass,” which each employee receives on the beginning of each calendar year. The pass, good for up to three consecutive days, is used to cover the wait-period before benefits would begin on the fourth day of absence.
The three days can not be spread apart and used separately.
In 2007, if an employee is not absent due to illness from either January 1, 2007 to June 30, 2007, OR July 1, 2007 to December 31, 2007, he/she employee shall receive one additional “pass” of up to 3 days. Employees may carry over a “pass” into the next year, but at no time can have more than two passes (A total of up to six days at 100 percent).
As no employee can have more than two passes at any time, he/she may be standing to forfeit one when a new year begins. Statistics show that the months of November and December are very common times to fall ill. An employee who develops an illness late in the year, would be in a position to use their pass of up to three days sick, and for the sake of their health and the health of their colleagues, they may be so inclined to use all three of the days, simply to ensure their maximum recovery.
Here’s an example:
If in February an employee calls out sick, he/she may use their 100 percent pay “pass” to cover up to three consecutive days of absence. On the fourth day of absence, he/she would begin to be paid at 65 percent. Therefore, if later in the year, the employee were to call out sick he/she would not be paid for their first three days absent due to illness, and on the fourth day out, benefits would begin at 65 percent of pay. Therefore, in the event an employee knows he/she is likely to only be absent for one day, it would be advantageous to the employee, to either use a Personal Day, or if they have earned Compensatory time, to use a comp day instead. That way the employee would not have spent their three-day pass on a one-day absence. If an employee falls ill, and is unable to use a personal or comp day instead, for the sake of the employees health and that of their colleagues, it would behoove the employee to use all three days of their 100 percent pass.
Wages and Health & Welfare
The wage package for the new contract is as follows.
There is no added pay until September, 2007.
On both September 1, 2007 and January 1, 2008, each full-time employee shall receive a $750 bonus, totaling $1,500.
On September 1, 2008, each full-time employee will receive a $25 per week raise.
Through past wage diversions, $205 per week for each full-time employee goes into the Guild’s health and welfare fund. These contributions will continue but, due to skyrocketing health care costs, employees will be responsible for funding future increases out of their checks. It will be necessary that the money from the $750 bonuses as well as the $25 raise go into our health and welfare fund.
There will be no additional diversions for health and welfare from employees needed until October 2007. At that time, it is currently estimated that employees will be required to contribute approximately $40 per week towards their health and welfare benefits.
In September 2008, the number could increase to about $60, and in January 2009, the number could be about $80 per week. These numbers could change, as the Guild and our benefits administrator are working to figure out how to both maximize our current benefits and also minimize any out of pocket costs to employees.
The Guild will keep employees posted of any upcoming health and welfare cost structure changes as well as seminars on health and welfare and financial planning which the Guild will be offering in 2007, and throughout the life of this contract.