UE-GE National Contract

The following is a UE-prepared summary of the main points of the tentative agreement between UE and General Electric for a new four year National Contract. 

Term of Agreement:
Four (4) years.

General Wage Increases
June 16, 2003 – 3.0%
June 21, 2004 – 2.5%
June 20, 2005 – 2.5%
June 19, 2006 – 3.0%

Cost-of-Living
Continue uncapped COLA with improved formula of one cent for each .09% rise in CPI-W (was .10%), with eight adjustments covering a 44-month period as follows:

December 2003, June 2004, December 2004, June 2005, December 2005, June 2006, December 2006, April 2007.

The new COLA formula represents about an 11% improvement over the preceding formula in inflation protection.

Incentive Rates
Same application as in the 2000-2003 Agreement.

Wage Structure Adjustment
Effective June 16, 2003 add one cent per hour (40 cents per week for salaried) to all rates above $21.03 per hour, or R-18 if lower, with an additional one cent for each 15-cent wage bracket as follows, with no maximums.

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Pensions
(Effective July 1, 2003, unless otherwise noted)

Guaranteed Minimum Tables
Increase to range of $33.00 to $60.00 (was $28.00 to $40.00). All levels in the middle of the tables also increased.

Regular Career Formula is improved by freezing the "break point" between 1.45% and 1.9% at $35,000. (Was scheduled to float upward.) Effective 2004.

Career Pension Update will enrich pensions of those retiring under the regular formula. Applies to employees with 25 or more years PQS or those age 55 with 20 years PQS as of 12/31/02. (Effective 12/1/03 for pensions beginning 6/1/02 or later.)

Regular Supplement is increased to $15 (was $14) and effective 7/1/05 to $16 for employees retiring between age 60 and age to qualify for 80% Social Security.

Special Supplement of $350 is renewed for employees with 25 or more years PQS. "Three month" rule is eliminated.

Pension Contributions of 3% of pay will begin after $50,000 of annual earnings (was $37,500), effective 2004. Earnings threshold will rise to $60,000 effective 2006. This will result in savings of up to $675 per year in after-tax money.

Retirees will receive one-time lump-sum pension increase in late 2003 or early 2004. Lump sum will be equal to one month’s basic pension (excluding supplements and PPA). Eligible recipients are those who retired on or before Jan. 1, 2002; terminated vested retirees with 25 years or more PQS who began receiving pensions on or before Jan. 1, 2002; surviving spouses of the above; and surviving spouses of employees who died in active service, and whose survivor annuity began on or before Jan. 1, 2002.

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Job and Income Security
(Effective June 16, 2003)

Renew SERO for employees ages 55-59 with 25 years of PQS affected by a "job loss event." SERO 30 also renewed.

SERO "Window" is reopened in 2003 and again in 2005. Eligibility for first window is limited to 850 applicants nationally who have the most Pension Benefit Service (PBS). Second window limited to 600 applicants with most PBS. Must retire on Oct. 1 or Nov. 1 in 2003 or 2005.

Plant Closing Pension Option (PCPO) is renewed as is Special Supplement Benefit Option (SSBO).

Preferential Placement relocation allowances increased to $3,000 for individual employee (was $2,500) and $6,000 for employees with live-in dependents (was $5,000). Potential hiring locations expanded to include many GE affiliate companies.

Voluntary Layoff and Special Retirement Bonuses for employees age 60 or older with 15 or more years of PQS increased to $14,000 (was $12,500).

Job Preservation guarantee on jobs preserved through the process extended to three years (was two years) or 12-month minimum if contract expires.

Job Preservation committee members will receive up to 4 hours’ pay for attendance at quarterly JPSC meetings.

Decision bargaining period increased from 45 to 60 days for plant closings and most work transfers. Notice of subcontracting of work not resulting in employment decrease must now be in writing.

Expand information that company must supply on cost comparisons after work transfer announcements.

IEA Offset against severance pay in the event of a plant closing is eliminated for employees laid off prior to the plant-closing date.

Individual Development Program (IDP) maximum allowance increased to $5,000/yr. (was $4,000), with maximum for non-job-related courses of $2,000 (was $1,500), and textbook allowance of $200 per course (was $150).

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Medical Insurance
(Effective January 1, 2004, unless otherwise noted)

HCP costs and benefits "locked in" for entire contract term, and may not be reopened.

Weekly STD benefits increased to $550 (now $475), and to $600 effective 2006.

Lifetime Maximum benefits increased to $2.5 million per person (now $2 million).

Preventive Care schedule allowances under CMB are increased. Coverage added for bone density and chlamydia screenings and for Hepatitis B series and Meningitis vaccine.

Dental Schedule increased (effective 1/1/05)

CMB co-pays for hospital, emergency room, and drugs increased parallel to increases to HCP of last January.

Long-Term Disability (LTDI) minimums increased by $50 for all 3 benefit options.

Same-Sex Domestic Partners to receive medical coverage.

Contributions from pay will increase in 2004 and 2006 for medical coverage, and will now be based on 3-tier system of one, two, or three or more individuals.

Example of employee in HCP in the $37,500 to $49,999 bracket:

Example of employee in CMB in the $37,500 to $49,999 bracket:

Contributions will continue to be made on a pre-tax basis.

Lifetime Maximums increased in pensioner medical plans (MCPP) and (PHIP) to $125,000 per couple and $75,000 per individual, respectively.

MCPP and PHIP first-day hospital benefit increased to $650 and $150 respectively ($25 increases).

Pre-65 retirees medical contributions increased by $1.00 per week for retiree and $1.00 for dependents.

Pensioners Prescription Drug Plan (PPDP) co-pay for mail order drugs increased to $25 (was $20) for 90-day supply. Otherwise PPDP co-pays remain same for current post-65 retirees and those enrolled prior to 1/1/04.

PPDP structure changed for future retirees (1/1/04 and after). Retail co-pays will be $12 generic and $16 retail for brand drugs (currently $15 uniformly). Mail co-pays will be $20 generic and $36 brand for 90-day supply (now $20 uniformly).

PPDP Out-of-Pocket maximum established with 100% of drug costs covered after maximum is reached. Out-of-pocket maximum is $1,500 per participant for post-65 retirees and those enrolling before 1/1/04, and $2,000 per participant enrolled on 1/1/04 and thereafter.

Prescription Co-Pay out-of-pocket maximum for active employees established with maximum of $2,000 per participant per year and $4,000 family.

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Union Representatives’ lost time at Step 3 meetings will be paid and number of union reps eligible for Step 2 payment increased from 8 to 10 at large locations.

Apparatus Service shop tool and safety shoe allowances increased to $275 and $150 respectively (was $225 and $125). Meal allowance to increase to $28/day now and to $30 in 2006 (now $26/day).

Death in Family which occurs during an employee’s vacation now will result in two additional days off with pay at vacation end or later.

S&P time of four hours or more will now count as hours worked in calculation of overtime pay.

Dependent life insurance plan restructured. New option will allow $5,000 increased spouse and $1,000 child coverage with no evidence of good health if one enrolls in fall 2003. New option allows up to $100,000 spouse and $10,000 per child coverage. Rates for new option will be age-based.

Savings Plan (S& SP) to offer new Roth IRA option after 2005. Investment switches increased to 24/yr. (Was 12.)

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UNITED ELECTRICAL, RADIO AND MACHINE WORKERS OF AMERICA (UE)
One Gateway Center • Suite 1400 • Pittsburgh, PA 15222 • 412-471-8919
www.ranknfile-ue.org