Friday night, Pratt & Whitney made its last, best and final contract offer to the International Association of Machinists and Aerospace Workers (IAM). The IAM advised the company that it intends to recommend employees reject the offer.
The offer addresses the interests of Pratt & Whitney’s employees and the competitiveness of the company’s new programs. If accepted, the proposed contract will improve employees' already industry-leading pay and benefits package. The proposal also commits new work to the Connecticut operations.
The company’s offer places certain material handling work with a third-party logistics provider. This ensures Pratt & Whitney’s Connecticut operations are not disadvantaged compared to our other factories that have already implemented this approach. This is critical for the long-term competitiveness of our Connecticut shops. No employees would lose their jobs as a result of the project before 2015. The company commits to work together with the union to reduce any involuntary layoffs resulting from the project.
We urge employees to ratify the contract.
HIGHLIGHTS OF PRATT & WHITNEY’S THREE-YEAR CONTRACT OFFER
Annual Wage Increases
• 2.5% wage increase each year
• $7 increase in monthly pension benefit (11%), to $72 per month, per year of service
Savings Plan Increase
• $6 increase (9%) in weekly company contributions to 401(k) plan
• No new medical cost increases until 2015
• Multiple plan design options
• $2,000 ratification bonus with a 50% matching contribution in 401(k) plan
• $1,000 additional lump sum
Future Connecticut Work Commitments
• Build a new assembly and test line for the PurePower®/Next Generation Product Family of engines
• Install a new, state-of-the-art nickel integrally bladed rotor (IBR) manufacturing cell
• Recall all Occupational Group 176 machinists, and insource work as necessary
• Placement of some material handling work at a third-party logistics provider
• No related layoffs for one year
• Training and placement efforts for impacted employees
• Special Separation Program
– One week of pay per year of service
– $10,000 lump sum
– Medical/dental insurance at no cost for 12 months
Voting will take place on Sunday, Dec. 8 at the Toyota Presents Oakdale Theatre in Wallingford, Conn. Doors open at 9 a.m. and doors close at 11 a.m. Badge or photo ID required for entry.
Source / Author: Pratt & Whitney