Boston, MA 06/09/2014 (wallstreetpr) – The union members of United Steelworkers (USW) in their secret ballot vote authorised an all-new new five-year labor agreement with Alcoa Inc (NYSE:AA). The agreement covers around 6,000 workers at 11 different locations of the U.S.
Terms and Conditions of the Agreement
- As part of the agreement, a ratification bonus of $1000 as well as an increase in the general wage averaging $3.22 per hour or approximately 14.2% shall be provided to the workers.
- The agreement keeps all the active and retiree health-care benefits to the workers intact.
- There will be no increase in the deductibles, coinsurance or co-pays.
- Also, the health care contribution rates for all the retired or active employees will remain unaltered.
- In the agreement, it is mentioned that there will be an increase in the pension formula as well as introduction of the new benefit for all the Alcoa employees suffering from severe burns.
Statement from the USW International President
The USW International President, Leo W. Gerard, said that the negotiations were difficult to reach because Alcoa Inc (NYSE:AA) demanded cuts in the health-care benefits, establishment of temporary work force and elimination of defined benefit pension for new workers. He further added that the agreement was however ratified, and it includes significant wage increases with every year of the contract. There would be no erosion of unexpected medical expenses or rising health care premiums.
Background of the Agreement between USW and Alcoa
USW and Alcoa Inc (NYSE:AA) had created a tentative agreement in May 2014, just a few hours before it was about to expire. There were negotiations on issues like healthcare premium increase and wages increase. The agreement became retroactive on May 16, 2014. It included the local union members at various Alcoa plants such as in Warrick and Lafayette, Ind.; Massena, N.Y., Gum Springs, Ark; Point Comfort and Rockdale, Texas; Wenatchee, Wash.; Davenport, Iowa; Alcoa, Tenn. and Badin, N.C.
