The United Steelworkers (USW) announced on May 7 that a new five-year labor agreement covering some 900 workers at Rexam Beverage Can North America Company was overwhelming approved on May 5 by secret ballot ratification procedures at all nine striking locations, ending work stoppages that began April 10.
“Our membership felt their backs were to the wall but stood up to the company’s attempt to shift an unfair burden of health care costs onto the backs of employees and retirees,” said USW international vice president Fred Redmond, chief negotiator for the union. “The agreement restores health care for future retirees, maintains a good insurance package for active employees, increases pensions and wages.”
The new contract provides for a $1,500 signing bonus and a 2 percent wage increase in the first year; a $1,000 lump sum payment in year two; a 2 percent wage increase in year three; a $1,000 lump sum payment in year four; a 2 percent wage increase in year five and the continuation of quarterly cost-of-living adjustments with annual roll-ins.
The pension multipliers are improved for all current employees. Effective February 25, 2007, it increased to a maximum of $59 for each year of service; $64, effective February 5, 2010; and $68, effective January 1, 2012. For all new hires, the pension multiplier is $40 for all years of service and effective January 1, 2008, they will be auto-enrolled into a 401(k) program at 3 percent.
The contract requires Rexam to provide a retiree benefit program for all future retirees through age 65, and thereafter, a monthly stipend intended to provide substantial assistance for the purchase of a "Medi-gap" benefit.
For the first time, the 170 workers at the Winston Salem plant are included in the Master Agreement, with a guaranteed commitment that wages will be brought to par with the other eight plants within seven years and an increased pension multiplier will immediately boost retirement benefits from $54 to $59 for each year of service.
While Rexam’s
When the labor agreement expired on February 24, USW members had continued working under contract extensions until they began unfair labor practice strikes April 10.
Picket lines came down on May 5, soon after the results of the ratification were known. Workers are back on the job at all locations. They include Winston Salem, N.C.;
