But news reports out of Tuscaloosa, Ala., and Ft. Wayne, Ind., the locations of two of the three affected plants, suggest the vote may not be cut and dried.
According to a report in the Ft. Wayne Journal Gazette, United Steelworkers Local 715 were briefed Tuesday morning on proposed settlement that did not cut worker wages or benefits and offered job protection at the three plants, but did cut into retiree benefits.
Joe Gengo, Local 715 vice president, told the newspaper that “it’s not a good agreement,” though it might be the best the union can get under current economic conditions. “I’m not sure that it won’t pass,” he told the newspaper.
Workers at the Tuscaloosa and Ft. Wayne plants are set to begin voting today; reports say the contract vote at the Opelika, Ala., plant, which still faces layoffs previously announced, will be held Aug. 3-5.
According to the Journal Gazette, here are some aspects of the proposed contract:
• No pay cuts to current employees. No increase in medical premiums. Increases to annual deductibles and out-of-pocket limits.
• New tiered pay system for all future hires (except certain “technical maintenance workers”) that would require four years of service before hitting the top of the wage scale for the job classification. Also, reduced pension benefits for future hires.
• Coverage changes to retiree healthcare programs.
• No plant closures or layoffs during the contract period. Previously announced 30% to 40% manpower reduction at Opelika plant will remain in place.
• MNA will invest some $100 million to allow production of higher margin tires at the plants.
