Northrop Gruman Ship Systems
Highlights Between Northop Gruman Ship Systems & The Unions Of The Pascagoula Metal Trades Council. April 4, 2007, Pascagoula, Mississippi--More than 6,000 members of 15 unions at the Ingalls Shipyard in Pascagoula, Mississippi have ratified the terms of a new three-year agreement by a 3 to 2 margin, ending the strike that has idled the Northrop Grumman Ship Systems yard since March 8th. The workers will begin reporting back to shifts starting on Thursday morning, April 5. AGREEMENT PERIOD : MARCH 4, 2007 – MARCH 7, 2010 WAGE RATE INCREASES This new proposal features the largest first-year hourly wage increase – and the largest total hourly wage increase – in the Company’s history, and takes into account the significantly increased costs in our region following Hurricane Katrina. Journeyman-level employees will receive wage rate increases in the new bargaining agreement, as follows:
* After the third wage increase is added in March 2009 (24 months into the agreement), a Journeyman-level worker will have seen a 15.2 percent total increase in his or her hourly rate. As an annual salary, this represents an increase of $5,782, to $43,888, from a current $38,106 – with additional earning opportunities including a COLA in the second and third years, overtime pay, attendance and performance bonuses, and shift & specialty premiums. * As in previous agreements, classifications other than Journeyman will receive proportionate increases. ADDITIONAL WAGE EARNING OPPORTUNITIES COST OF LIVING ADJUSTMENT (COLA) This new proposal includes a potential COLA in the second and third years, which would be paid as a lump sum on all hours worked in the previous year, and will be paid in the first pay period of February 2009 and 2010. The COLA will be based on changes in the annual Consumer Price Index for Urban Wage Earners and Clerical Workers in the South (CPI-W South), as calculated and published by the U.S. Bureau of Labor Statistics. This index measures the average change in prices paid in our region for goods and services. ATTENDANCE BONUS The existing Attendance Bonus Program ($125 for 320 consecutive hours worked) will be improved to increase the dollar amount available for each employee to earn, and to shorten the hours required to earn the bonus. * Under the revised program, an employee will be paid an additional $75 for an initial 160 consecutive hours worked without an absence. * After achieving the 160-hour bonus, that employee will earn an additional $20 each week, until the consecutive hours streak is broken. * The following events will not only count as excused absences, as under the previous program, but will also count as hours earned toward the bonus: Jury Duty, Military Leave, Vacation, Holidays, Rain Days, Temporary Layoff, Death in Family, Minister Presiding Over Funeral, and Pallbearer.
In this new proposal, the Company will, beginning with the second year of the agreement, implement a Performance-Based Incentive Bonus that will provide employees additional earning opportunities for improved quality (reduced reject rate) and performance. This bonus can go as high as 50¢ per hour. Details of the program metrics will be developed in a cooperative effort by the Company and the Unions. SHIFT PREMIUM The Shift Premium for employees working on second and third production shifts will increase to 80¢per hour (was 60¢ in previous agreement). This premium has a potential annual value of $1,664 at the Journeyman rate. TACKING PREMIUM The wage premium for all employees certified to tack will be doubled in the new agreement, to 20¢per hour. This premium has a potential annual value of $416 at the Journeyman rate. 4 X 10 WORK WEEK The 4-day X 10-hour work week schedule shall continue as previously agreed to by the Company and the Unions. VACATION IMPROVEMENTS FASTER ACCRUAL OF VACATION HOURS – In the proposal, employees will reach the four-year level of total vacation time, 88 hours, in faster increments, as follows:
VACATION IMPROVEMENTS FASTER ACCRUAL OF VACATION HOURS – In the proposal, employees will reach the four-year level of total vacation time, 88 hours, in faster increments, as follows:
IMPROVED VACATION ACCRUAL PROCESS – Employees who return from layoff and have used a proportionate part of their accrued vacation during that layoff, will now be able to begin accruing new vacation time immediately for the remainder of the anniversary year.
REGULAR APPRENTICES WAGE RATE INCREASES – The wage rate for all participants in the Regular Apprentice Program will be increased. The entry level rate will increase to 76 percent (from 64 percent in the previous agreement) of the Journeyman Rate; and other progression steps will also increase, based on the current rate progression increment scale. FOR EXAMPLE: During the first year of the new agreement, at the 76 percent rate, an Entry Level Regular Apprentice will earn $15.20 per hour.
INSTRUCTIONAL ENHANCEMENT – Utilizing computer-aided instruction, participants will have the option of working in a computer lab at their own pace of learning, rather than in a classroom setting. HELPER APPRENTICES WAGE RATE INCREASES – The wage rate for all participants in the Helper Apprentice Program will be increased. The entry level rate will increase to 60 percent (from 54 percent in the previous agreement) of the Journeyman Rate; and other progression steps will also increase, based on the current rate progression increment scale. FOR EXAMPLE: During the first year of the new agreement, at the 60 percent rate, an Entry Level Helper Apprentice will earn $12.00 per hour. INSTRUCTIONAL ENHANCEMENT – The Helper Apprentice Program will include both on-the-job and classroom instructional sessions, to ensure that each participant is obtaining the proper balance of craft and general skills training.
HEALTH CARE PLAN IMPROVEMENTS INCREASED FULL-TIME STUDENT DEPENDENT COVERAGE – Increases to age 25 (from age 24 in the previous agreement). INCREASED LOSS-OF-TIME BENEFIT – Increases $10 per week during each year of the new agreement, as follows: * First Year – $235 per week * Second Year – $245 per week * Third Year – $255 per week
HEALTH CARE PLAN PREMIUM SHARING The Company will continue to pay approximately 80 percent of each employee’s monthly health care premium. In the proposed new agreement, each employee’s share of the monthly premium will increase from the current $144 per month, as follows:
INCREASED MULTIPLIER – The Plan Benefit Multiplier will increase to 70 percent from 65 percent, for employees who retire after the effective date of the proposed new agreement, March 4, 2007. This could represent a significant increase in available monthly retirement benefits for employees who participate in the Plan. EXAMPLE
CONTINUED SURVIVING SPOUSE ELIGIBILITY – In the event of a retiree’s death prior to the end of the five-year eligibility period, the surviving spouse may continue coverage under the Health Care Plan for the balance of the five-year period, at the same monthly rate. CONTINUED SURVIVING SPOUSE ELIGIBILITY – In the event of a retiree’s death prior to the end of the five-year eligibility period, the surviving spouse may continue coverage under the Health Care Plan for the balance of the five-year period, at the same monthly rate.
RETIREE HEALTH CARE PREMIUM INCREASE Employees already in retirement will continue to pay $175 per month as their share of the monthly premium. For those employees who retire after the effective date of the proposed new agreement, March 4, 2007, the retiree’s share of the monthly health care premium will be set at $225 per month for the life of the new agreement. This increase represents the first retiree share increase since the early 1990s. SUMMARY OF ECONOMIC IMPROVEMENTS OVER THE EXISTING/EXPIRED AGREEMENT IN THE NEW PROPOSED BARGAINING AGREEMENT 1 st Wage Increase $1.68 2 nd Wage Increase .55 3 rd Wage Increase .55 Total Wage Increases $2.78 Total Additional Wages $13,915
Increased Health Care Premium Share Total 1 st Year Increase ($1.68 per week increase) $84 Total 2 nd Year Increase ($6.24 per week increase) 396 Total 3 rd Year Increase ($4.08 per week increase) 600 Total Health Care Premium Share Increase $1,080 Total Economic Benefit to the Employee $12,835
Total Weekly Value of the New Proposal
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