Successful Settlement
To Northwest
Automatic Strike
MINNEAPOLIS, Minn.
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Rally gave boost to the Local 1139 strike.
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Union members at Northwest Automatic Products waged a
successful three and a half-week strike to defend their contract and win
important improvements. The 100 members of amalgamated UE Local 1139 in
Minneapolis demonstrated 100 percent solidarity — not one scab crossing the
line. A rally just days before the settlement gave added strength to the
strike.
Workers struck when the company insisted on gutting their
retirement plan and offering only small wage increases offset by substantial
increases in employees payments for health insurance. The company also
demanded a four-year contract and offered virtually nothing in the way of
benefit improvements.
The strike’s effectiveness convinced the company to greatly
improve its offer. Although the current pension plan will end, the replacement
will actually increase the amount of money the company will invest in its
workers’ retirements.
CONTRACT GAINS
Under the contract approved on July 12, wages will go up 3.5
percent each year of the three-year agreement. The existing health insurance
benefits are completely maintained with no increases in employee payments. The
annual dental maximum is tripled, from $500 to $1,500; for the first time the
company will provide family dental coverage, paying about 80 percent of the
premium. Sick pay is changed from a flat $240 a week to 55 percent of weekly
pay, resulting in an increase of more than 50 percent for the average worker
in a shop where the average pay will exceed $17 an hour.
The existing pension plan will be phased out during the term
of the contract, but the company will be required to fully finance the
previously underfunded plan so that all benefits within it are finally
completely vested. After that time, employees will receive annuities upon
their retirement. The company will phase in a 401(k) plan to which they will
make a guaranteed contribution of 2 percent of each employee’s salary, an
amount roughly equal to what was needed to maintain the old pension plan. In
addition, the company will match 50 percent of employee contributions up to 2
percent. But the key to settling the pension plan was that the company agreed
to make good on a separate, unvested pension benefit that most employees never
expected to see. Instead, the company will deposit the current value of that
benefit in each employee’s 401(k), an average of about $2,500 per worker.
The rally in front of the Northwest Automatic Products office
saw 60 UE members demonstrate their determination for a decent contract, along
with representatives of the SEIU and UAW in support. Josh Syrjamaki,
policy liaison, represented U.S. Sen. Paul Wellstone who was on
Minnesota’s Iron Range with workers facing loss of their jobs. Wellstone
supports the rights of workers, Syrjamaki said. Doug Williams of the
Minnesota Industrial Union Council said fighting to keep what we have is the
right thing for workers to do. Local 1139 is a council affiliate.
The negotiating committee consisted of Chief Steward Flo
Magadan, and Committeepersons Bruce Spilman, Paul Nelson and John
Morris. They were assisted by UE Field Org. Rocky DeMaio and
District 11 Pres. Carl Rosen.
UE News - 07/00
