CAW-CANADA/BOMBARDIER

CAW-C ANADA /B OMBARDIER
B A R G A I N I N G
PRODUCTION
AND
R E P O R T
SKILLED TRADES
JUNE 2009
HIGHLIGHTS OF THE TENTATIVE AGREEMENT
BETWEEN CAW-CANADA AND BOMBARDIER - LOCAL 112
Message from CAW President Ken Lewenza
HIGHLIGHTS
Wage
improvements
Pension
improvements
Enhanced
job security
Special
Retirement
Incentives
Skilled trades
wage
adjustment
Skilled trades
pension
adjustment
T
he 2009 round of contract
negotiations at Bombardier de
Havilland was fraught with challenges
and company demands that threatened
long term progress for the current,
future and past members of CAW Locals
112 and 673.
Over the past few years, the company
has enjoyed strong sales and a backlog of orders for both
the Q series and Global Express aircraft. Since the
downturn in the economy though, orders have dramatically
slowed down, been deferred or even cancelled, causing
changes to production rates and lay-offs.
Companies around the globe are exploiting the financial
crisis and resulting recession, attempting to roll back
workers’ historic gains by capitalizing on the fear so many
people feel about their futures. At Bombardier, not only did
the bargaining committee resist these efforts, we were
MESSAGE FROM MERV GRAY
A
fter a long and sometimes frustrating
bargaining process, your committee
has reached a strong agreement going
forward on all of the priorities identified by
Local 112 members.
We achieved upfront increases in pensions
which mirrored the highest increases in the
basic pension that have ever been attained
at Bombardier. We also continued our
pattern of securing wage and benefit improvements for the next
three years. Your bargaining committee resisted all efforts by the
company to roll back hard fought gains and despite tremendous
pressure we were able to make improvements in many key areas
of the agreement.
The negotiating team adamantly refused, on your behalf, to
accept any proposal of the company’s which would have
permitted Bombardier to supplement 112’s workforce by up to
20% through the use of temporary workers threatening both the
ultimately successful in making a number of improvements
to the collective agreement.
Part of the company’s earlier proposal was to limit its
liabilities to provide health care benefits for retired workers
going forward. The bargaining committee recognized that
this would leave current and future retirees vulnerable. We
thoroughly rejected this demand.
Your bargaining committee fought hard to win wage and
pension improvements, which will mean a more secure
future not only for the current workforce, but retirees and
their families as well.
I want to thank you for your strong solidarity which allowed
us to negotiate a good agreement, while narrowly avoiding
a strike.
I join with your bargaining committee in recommending
ratification and urging you to vote in favour of this tentative
agreement.
Plant Chairperson CAW 112
current and future security of all our members.
This set of negotiations like all rounds with Bombardier was
extremely difficult. The failure of the company during the final
hours to back off their demand, which put at risk the existing
commitment to health care benefits for all current and future
retires, resulted in us having to extend the strike deadline past 10
a.m. Given the seriousness of such a demand the extension of the
deadline was critical in enabling us to negotiate an agreement
here without a strike. We thank the membership for their
patience during this time. Historically an agreement has never
been reached here until the eleventh hour, and this round was no
different.
I commend the efforts of your bargaining committee whose
experience and unwavering commitment on behalf of the
membership was essential to ensuring a deal was possible in the
final hours of negotiations.
Your bargaining committee unanimously recommends
acceptance of this three year tentative agreement.
P ROPOSED P RODUCTION
Current
Wage
Level 3
Group Base Rate
5
591*
6
7
8
9
ST1
ST2
ST3
$28.84
$28.84
$29.35
$29.91
$30.48
$31.60
$32.81
$33.14
$33.61
Cola
Fold-in
$0.76
$0.76
$0.76
$0.76
$0.76
$0.76
$0.76
$0.76
$0.76
AND
S KILLED T RADES BASE R ATE I NCREASES
FIRST YEAR
SECOND YEAR
THIRD YEAR
New Level 3
General
skill
New
General
New
Base Rate
Increase
adjust
Job Rate
Increase
Job Rate
23-Jun-2009 23-Jun-2010 23-Jun-2010 23-Jun-2010 23-Jun-2011 23-Jun-2011
$29.60
$29.60
$30.11
$30.67
$31.24
$32.36
$33.57
$33.90
$34.37
$0.52
$0.52
$0.53
$0.54
$0.55
$0.57
$0.59
$0.59
$0.60
$0.25
$0.05
$0.25
$0.25
$0.25
$30.37
$30.37
$30.64
$31.21
$31.79
$32.93
$34.16
$34.49
$34.97
$0.61
$0.61
$0.61
$0.62
$0.64
$0.66
$0.68
$0.69
$0.70
$30.98
$30.98
$31.25
$31.83
$32.42
$33.58
$34.84
$35.18
$35.67
TOTALS
Total
Base Rate
Increase
$1.38
$1.18
$1.14
$1.16
$1.18
$1.22
$1.52
$1.53
$1.55
Projected
Total
Cola** Increases
$0.77
$0.77
$0.77
$0.77
$0.77
$0.77
$0.77
$0.77
$0.77
$2.15
$1.95
$1.91
$1.93
$1.95
$1.99
$2.29
$2.30
$2.32
*The 591 classification continues to receive a $.20 per hour premium over the Group 5 rate until it is incorporated into the 591 base rate effective June 23, 2010.
**Inflation is projected at 1% in yr 1, 1.5% in yr 2 and 2% in yr 3 of the agreement. COLA may be higher or lower depending on actual inflation.
EXAMPLES: INCREASES
Current Earnings
IN
AIRCRAFT
Assembler (591)
TOOL AND DIE
Maker (ST3)
$29.80
includes $.76 COLA
$34.37
includes $.76 COLA
1ST YEAR INCREASE
*estimated COLA
$0.10
End of 1st Year
2ND YEAR INCREASE
general increase
$0.52
skill adjustment
$0.05
*COLA
$0.28
End of 2nd year
3RD YEAR INCREASE
general increase
$0.61
*COLA
$0.39
End of 3rd year
TOTAL INCREASES
general increase
$1.13
*COLA
$0.77
skill adjustment
$0.05
$1.95
PENSION
EXAMPLE, SINGLE MEMBER, AGED 60
WITH 30 YEARS CREDITED SERVICE
EARNINGS
$0.10
$34.47
$29.90
$0.60
$0.25
$0.28
$30.75
$35.35
ESTIMATED PENSION,
AGE 60 TO 64
Basic Benefit
Early Retirement
Supplement
Total Company Pension
With Early CPP ($636*)
Estimated annual
Pension ages 60-64
$55
$62
$
%
Current New Agreement Increase Increase
$1,650 $1,860
$210
12.7%
$570
$2,220
$2,856
$570
$2,430
$3,066
$34,272 $36,792
$0
$210
0.0%
9.5%
$2,520
ESTIMATED PENSION,
$55
$62
$
%
AGE 65 AND BEYOND Current New Agreement Increase Increase
$0.70
$0.39
$31.75
MONTHLY PENSION, PRODUCTION
$36.45
$1.30
$0.77
$0.25
$2.32
Total Company Pension
Canada Pension (CPP)*
Old Age Security Pension*
Total monthly Pension
Estimated annual Pension
age 65 and beyond
$1,650 $1,860
$636
$636
$484
$484
$2,770 $2,980
$210
12.7%
$210
7.6%
$33,240 $35,760
$2,520
7.6%
*CPP and OAS pensions estimated at 2009 maximum rates. CPP and OAS
are indexed to inflation.
HEALTH
M
AJOR C
P ENSION
ARE B ENEFITS
I MPROVEMENTS
$62 BASIC PENSION FOR ACTIVES
The Basic Lifetime Pension Benefit for production workers retiring on
or after June 23 2009 increases by $7 per month per year of credited
service, from $55 to $62, effective July 1, 2009. This represents a
12.7% increase in the Basic Benefit rate, and will add $210 per month,
or $2,520 per year, to the pensions of members who retire with 30
years of credited service.
3 YEARS OF PENSION INDEXING FOR CURRENT RETIREES
AND SURVIVING SPOUSES
Effective January 1, 2010, January 1, 2011 and January 1, 2012 the
monthly Basic pension of members retired prior to June 23rd 2009
will be adjusted by 70% of the increase in the cost of living, to a
maximum increase of 3% per year. These increases will also apply to
surviving spouse pensions.
CREDITED SERVICE BUY- BACK
The company has agreed to continue the pension credited service buyback program for the life of the collective agreement. This will permit
members to purchase credited pension service for periods of layoff
where members did not earn credited service under the pension plan.
SKILLED TRADES PENSION INCREASE
Effective July 1, 2009 the Basic Pension benefit for skilled trades
workers who retire on or after June 23rd 2009 will be increased to $67
per month per year of credited service.
HEALTH CARE BENEFITS
EFFECTIVE DATES:
All new coverages and benefit
amounts take effect the first day of the
month following ratification, unless
otherwise noted.
VISION CARE
• Maximum reimbursement under
the vision care plan will increased by
$20 per category to the following:
•
Single vision:
$210
•
Bifocal:
$230
•
Multifocal:
$250
•
Contact lenses
$175
MAJOR MEDICAL
• The benefit for land ambulance has
been increased from $50 to $60 per
trip, up to a maximum of $250 per
year.
• Coverage for the CA 125 blood test
for ovarian cancer has been
increased from 80% to 100%.
• The annual deductible for major
medical benefits has been increased
to $35 for single coverage and to $60
for family coverage.
• Coverage for Orthopaedic shoes,
arch supports and orthotics will
require a prescription, and coverage
has been modified to provide 1 pair
every 18 months.
• Coverage for support stockings has
been maintained at 4 pair per year
and will require pre-approval by the
insurance company.
G ROUP I NSURANCE
• Laboratory and x-ray expenses will
be provided up to a maximum of
$1250 per person per year.
SICKNESS AND
ACCIDENTS BENEFITS
PARAMEDICAL SERVICES
• For disabilities occurring on or after the
first of the month following ratification,
the weekly benefit will increase from
$650 ($675 for skilled trades) to $725
($750 for skilled trades).
• The combined annual maximum
for paramedical services has been
increased from $500 to $600.
• Coverage for Registered Massage
Therapists
will
require
a
prescription, and the annual
maximum has been maintained at
$500.
• Reimbursement will be provided for up
to $20 for the cost of having a physician
complete a 2nd medical form if the
incorrect form was requested by the
insurance company.
DRUG PLAN
EXTENDED DISABILITY BENEFITS
The maximum dispensing fee covered
under the drug plan has been
modified from $11 to $9 per
prescription.
• Extended disability benefits have been
improved as follows:
• For disabilities occurring on or after
July 1, 2009 the monthly benefit
increases by $50, from $1,600 to
$1,650.
DENTAL PLAN
• The annual maximum under the
dental plan has been increased from
$1,800 to $1,900 per year, effective
July 1 2010.
• The one year lag on the ODA fee
schedule has been maintained.
POST RETIREMENT HEALTH
CARE BENEFITS
The company and union have agreed
to meet during the first year of the
collective agreement to continue
discussions in an effort to find a
mutually acceptable arrangement to
address the provision of OPEB
benefits.
• For disabilities occurring on or after
June 30, 2010 the monthly benefit
increases from $1,650 to $1,700.
• For disabilities occurring on or after
June 30, 2011 the monthly benefit
increases from $1,700 to $1,750.
• The offset for CPP disability benefits has
been eliminated for members who apply
for, and are denied, CPP disability
benefits.
• An extended disability top-up will now be
provided for unpaid periods for
members who return to work on a partial
return or graduated hours basis.
LIFE INSURANCE
AND AD&D
• Effective July 1, 2009 life Insurance
coverage increases from $60,000 to
$70,000 and AD&D increases to $35,000.
RESTRUCTURING
T
he Restructuring provisions
and Special Voluntary
Retirement Allowance provisions
of the collective agreement have
been renewed.
TERM OF THE AGREEMENT:
June 23, 2009 to June 22, 2012
The letter providing for the payroll
pension top-up for employees
retiring under the Special Early
Retirement provisions of the
pension plan has been renewed.
S PECIAL R ETIREMENT I NCENTIVE
T
he company has agreed to offer a total of 40 packages to retirement eligible Local 112
members within 60 days of ratification. The retirement packages will be made
available plant wide on an election by seniority basis. Employees retiring under this offer
must retire within 90 days of ratification, subject to requirements for the transfer of skills
and knowledge.
The amount of the retirement allowance under the offer will equal two weeks wages at the
employee’s regular hourly rate (excluding COLA) for each year completed of credited
pension service to a maximum of $55,000. This represents a 10% increase in the
maximum.
S KILLED T RADES
P
rogress has been made for skilled trades during
this round of bargaining, including:
• Continual commitment on the Apprentice
program;
• New: Language on T.S.S.A certification and
training.
• Skilled Trades Adjustment of $0.25 in the
second year.
• Special Pension Adjustment of $1.00 in the
first year.
PAID H OLIDAY S CHEDULE
WAGE PARITY
Wage parity has been attained for all group 5s.
HOLIDAY
2010
2011
2012
SHIFT PREMIUM
NEW YEAR'S DAY
Fri., Jan. 1
Mon., Jan. 3
Mon., Jan. 2
GOOD FRIDAY
Fri., Apr. 2
Fri., Apr. 22
Fri., Apr. 6
VICTORIA DAY
Mon., May 24
Mon., May 23
Mon., May 21
The shift premium has been increased by 20%.
JOB POSTING
2009
CANADA DAY
Fri., Jul.3
Thu., Jul. 1
Fri., Jul. 1
FLOATER
Mon., Jul.6
Fri., Jul. 2
Mon., Jul. 4
LABOUR DAY
Mon., Sep. 7
Mon., Sep. 6
Mon., Sep. 5
THANKSGIVING
Mon., Oct. 12
Mon., Oct. 11
Mon., Oct. 10
A mechanism has been included to address
concerns regarding the lead hand role.
FLOATER
Thu, Dec. 24
Fri., Dec. 24
Fri., Dec. 23
BEREAVEMENT LEAVE
CHRISTMAS DAY
Fri., Dec. 25
Mon., Dec. 27
Mon., Dec. 26
BOXING DAY
Mon., Dec. 28
Tues., Dec. 28
Department and areas will now be identified on the
postings.
LEAD HAND
When a death occurs during the Christmas plant
holidays, members will be permitted to extend
their Christmas shutdown immediately following
the holidays by a period equivalent to their
bereavement entitlement.
FLOATER
WOMENS ADVOCATE
* In lieu of Civic Holiday for 2009, 2010, 2011.
Tues., Dec. 27
Wed., Dec.28
FLOATER
Tues., Dec. 29
Wed., Dec. 29
Thu., Dec.29
FLOATER
Wed., Dec. 30
Thu., Dec. 30
Fri., Dec. 30*
FLOATER
Thu., Dec. 31*
Fri., Dec. 31*
The hours of representation have been increased.
RECOMMENDATION
SAFETY SHOES
The safety shoe allowance has been increased
to $105.
Your Master Bargaining Committee unanimously recommends
this tentative agreement and urges you to vote in favour of it.
YOUR CAW-C ANADA M ASTER BARGAINING COMMITTEE
AT B OMBARDIER LOCAL 112
KEN LEWENZA
CAW National President
JIM O’NEIL
National
Secretary-Treasurer
JERRY DIAS
Assistant to
the President
DAWN CARTWRIGHT
Aerospace Director
JEFF WAREHAM
National Representative,
Pensions & Benefits
COLIN HESLOP
Director of
Skilled Trades
ROLAND KIEHNE
President
CAW Local 112
MERV GRAY
Plant Chairperson
Bombardier
PHIL FRYER
Skilled Trades
Representative
BRIAN MURPHY
Bargaining Committee
Local 112
BILL BELL
Bargaining Committee
Local 112
BOB HAMILTON
Bargaining Committee
Local 112