Union Proposal: Bargaining Table 3 Union

Union Proposal: Bargaining Table 3 Union

Wages(Majed) Must have but don’t push hard

A= current:

B= desired

C= minimum

 

Meals (Majed) Can lose

A= current

B= desired

C= minimum

 

 

 

Retirement: (Anna) We ideally want to push for our proposal but would settle for the five cent increase that follows the same increase over the previous contract contributed to employees’ retirement.

Defined Contribution Retirement Plan:A contribution retirement plan provides a fixed contribution made by the Employer. “At the start of this Agreement, the Employer shall contribute to the “Twin Cities Hotel Employers-Employees Defined Contribution Retirement Plan” (hereinafter the “Defined Contribution Plan”), at a rate of thirty five cents ($0.35) for each hour paid to each employee under the jurisdiction of this Agreement. This contribution will be increased to forty cents ($0.40) on this Agreement’s second anniversary.” -Contract

 PROPOSAL: Since, it is the Agreement’s third anniversary we are negotiating a fifty cent ($0.50)

contribution to employees’ retirement plans for each hour paid to each employee. Since, each year most of the employees are increasing in age and desire to contribute greater amounts to their retirement. Calculations are based off proposal wage increase percentage and the number of employees times the rate of contribution. The costs of our proposal over the life of the contract would come out to be:

1st year: ($180,388.49)(167)(0.35)=$10,543,707.24

2nd year:($187,522.03)(167)(0.40)=$12,526,471.60

3rd year:($192,962.18)(167)(0.50)=$16,112,342.03

Total over life of contract: $39,182,520.87

 

SETTLEMENT: Since, it is the Agreement’s third anniversary we are settling at a forty-five cent

($0.45) contribution to employees’ retirement plans for each hour paid to each

employee. Since, each year most of the employees are increasing in age and desire to

contribute greater amounts to their retirement. Calculations are based off settlement

wage increase percentage and the number of employees times the rate of contribution.

The five cent increase follows the same increase over the previous contract, a

three-cent increase every year contributed to employees’ retirement. The cost of our

settlement over the life of the contract would come out to be:

1st year: ($99,186.17)(167)($0.35)=$5.797,431.64

2nd year: ($101,710.91)(167)($0.40=$6,794,288.79

3rd year: ($103,153.62)(167)($0.45=$7,751,994.54

Total over life of contract: $20,343,714.97

 

Health insurance: (Anna) Must

“All employees who work a minimum of twenty (20) hours per week are eligible for these

benefits as stated by the current contract. 90% of employees are enrolled currently. 40% of

employees are enrolled in single coverage (rounded to 67 employees) and 50% are enrolled in

family coverage (rounded to 84 employees). Total of 151 employees currently enrolled in a

health insurance plan.” -Based off contract 

PROPOSAL: Health Insurance (Annual Deductible for Single Coverage, fully paid by the

Fund):Take a 3% increase (currently $4,000+120)= $4,120-$100=$4,020

*Note: According to The Zinnia and Local H-56 website, by increasing the prescription drug

co-pays by another $15 per drug we can reduce annual premiums by $100 per employee (single coverage).

Health Insurance (Annual Deductible for Family Coverage):Take a 4% increase (currently

$10,500+$420=$10,920-$400=$10,520 (fund will now pay $7,520 and employee pays $3,000)

            *Note: According to The Zinnia and Local H-56 website, by increasing the prescription

drug co-pays by another $15 per drug we can reduce annual premiums by $400 for family

coverage.

*Note for Percentage Increases: According The Zinnia and Local H-56 website, it is expected that these rates increase (annual deductible for both employee and family coverage) by 5% this year if no changes are made.

Prescription Drugs:100% after 1 copay of $30 (currently $15) for generic; 100% after 1 copay

of $90 (currently $75) for name brand drug

Annual Out-of-Pocket Maximums (Health insurance): $3,000/person (currently $4,000/person)

Dental Insurance:

On average, it is $200 for a routine cleaning and x-ray (exams and cleanings occur 2 per calendar year→ $400 for a calendar year) The employer will pay 75% of each visit ($150) for once (with a total of $300 for the year). Calculated for a 167 employees

The costs of our proposal over the life of the contract would come out to be:

 

 

Annual Deductible for Single Coverage: ($4,020)(67)=$269,340; Total life of contract:

$808,020

Annual Deductible for Family Coverage: ($7,520)(84)=$631,680; Total life of contract:

$1,895,040

Dental Insurance: ($300)(167)=$50,100; Total life of contract: $150,300

SETTLEMENT: Health Insurance (Annual Deductible Single Coverage) fully paid by the fund:

Take a 3% increase (currently $4,000+120)= $4,120

($4,120)(67 employees that have single coverage)=$276,040

*Note: According to The Zinnia and Local H-56 website, by increasing the prescription drug co-pays by another $15 per drug we can reduce annual premiums by $100 per employee (single coverage). With our settlement, we would keep the single coverage the same the fund has to pay in for.

 Health Insurance (Annual Deductible for Family Coverage): Take a 4% increase     (currently $10,500+$420=$10,920 (fund will now pay $8,000 and employee pays $2,920)

($8,000)(84 employees that have family coverage): $672,000

*Note: According to The Zinnia and Local H-56 website, by increasing the prescription drug co-pays by another $15 per drug we can reduce annual premiums by $400 per employee (family coverage coverage). With our settlement, we would reduce the copay for prescription drugs but have a higher annual deductible family coverage.

Annual Out-of-Pocket Maximums (Health insurance): $3,500

*Our settlement would be increasing the out-of-pocket maximums that employees would have to pay before expenses are fully paid for by the employer. The current out-of-pocket maximum is $4,000. The settlement would be the employer paying $500 less.

Copay for generic prescription drugs: $12

Copay for name brand prescription drugs: $45

*Note: We will settle for reduced generic prescription drugs but have a higher annual deductible paid that the fund has to pay a greater contribution for.

Dental Insurance:

On average, it is $200 for a routine cleaning and x-ray (exams and cleanings occur 2 per calendar year→ ($400 for a calendar year) The employer will pay 50% of each visit ($100) for once (with a total of $200 for the year). ($200)(167)=$33,400

Calculated for 167 employees

 

 

 

Other Benefits:  (Joel) When we as a union surveyed the employees it was made clear that daycare, eye exams and glasses, and life insurance was a must for us to bargain for. We will bargain these items as some of the first to make sure we get them. We understand that we will most likely have to take a cut in some other category to get them.

 

There is currently no agreement in the last contract that contains daycare, eye exams and glasses, and life insurance.

PROPOSAL: This is a key section that we must “win”. We do not plan on steering far away from our proposal. We do fear that the management team has not took these cost into consideration and fear that we will have to “give up more” in other places. It’s key for us to tell management that this is becoming more and more popular with other companies to cover this.

Day Care: Average cost of daycare is $11,666 per year. Employer will pay 50% of daycare. Note only 50% of our employees are enrolled in family  coverage. Calculation is based off 167 employees.

Eye Exams: Eye exams on average cost around $88. The employer will pay $50 for each exam.

Eye Glasses and Contact Lenses: Employer will pay $200 one time fee over the contract life to cover cost of glasses and lenses.

Note eye exams and glasses calculations are based off that 50% of employees use them.

Life Insurance: Accidental Death and Dismemberment Minimum of $10,000 (currently $5,000) Calculation is based off of 167 employees, at $3 per month per employee.

 

 

SETTLEMENT: If management does not accept the coverage that is listed below we cannot come to an agreement. This is a bare minimum and we will not go below. We will use this as threat! We know we can’t strike but if they do not agree we will urge workers to “force” the management to comply. For example slow down their work pace.

Day Care: Average cost of daycare is $11,666 per year. Employer will pay 15% of daycare. Note only 50% of our employees are enrolled in family  coverage. Calculation is based off 166 employees.

Eye Exams: Eye exams on average cost around $88. The employer will pay $20 for each exam. 4980

Eye Glasses and Contact Lenses: Employer will pay $50 one time fee over the contract life to cover cost of glasses and lenses. 4150

Note eye exams and glasses calculations are based off that 50% of employees use them.

Life Insurance: Accidental Death and Dismemberment Minimum of $7,000 (instead of $5,000) Calculation based off of 167 employees

 

 

 

Vacations and Holidays (Sulakshi) Want some not a must

As stated in the Contract: All regular full-time and regular part-time employees who have at least one full year of seniority shall be entitled to a paid vacation on the following basis:

1 Year, but < 2 Years- 1 Week

2 Years, but < 10 Years- 2 weeks

10 Years, but < 20 Years- 3 weeks

20 Years or more- 4 weeks

PROPOSAL: We plan to negotiate that the employees shall be entitled to a paid vacation on the following basis:

1 Year- 14 Days

2 Years- 14 Days

5 Years- 21 Days

10 Years- 28 Days

15 Years- 35 Days

20 Years- 42 Days

*Note: Employee shall give 2 weeks notice in advance of request.

The average total cost would be approximately, $228,651.99 (76,217.33, Annually).

SETTLEMENT:

1 Year- 10 Days

2 Years- 14 Days

5 Years- 16 Days

10 Years- 18 Days

15 Years- 20 Days

20 Years- 22 Days

*Note: Employee shall give 30 day notice in advance of request.

The average total cost would be $87,835.91 (29,278.63, Annually).

 

 

Successorship: (Joel) We received an email from the International Union of Service Workers and Allied Employees. Summary of the memo is “I cannot emphasize enough the importance of obtaining a successor clause and a subcontracting clause in your next negotiations.  I have enclosed sample clauses.” Listed below is the sample clause that was given from the union. Since it doesn’t specify that it will cost the management team any money we believe it’s very easy to negotiate this.

PROPOSAL AND SETTLEMENT: There is no reason why we shouldn’t be able to get this word for word. That’s why this is listed as a proposal and settlement because we have no intentions to steer away from it since the international union sent it to us.

Successorship:

“The Employer and the Union agree to abide by all Federal and State Labor Laws with respect to successorship.  The provisions of this Agreement shall be binding upon the Company and on the successors, assigns, purchasers,lessees or transferee of the Company whether such succession, assignment, or transfer be effected voluntarily or by operation of law or by merger or

consolidation with another company.  The Company agrees that it will include in the purchase agreement that this Contract is binding on the purchaser or

transferee.”

 

Subcontracting

“For the purpose of preserving work and job opportunities for the employees covered by this Agreement, the Employer agrees that no work or services of the kind, nature or type covered by, presently performed, or hereafter assigned to the collective bargaining unit will be subcontracted, transferred, leased, assigned or conveyed in whole or in part to any other plant, person, or non-unit employees, unless otherwise provided in this Agreement.  The Employer may not subcontract work in any classification for the purpose of

avoiding overtime. The Employer may not subcontract work in any classification if any employee who normally performs such work is on layoff.”

 

 

Uniforms:(Joel) Uniforms is something we plan to give up. Of course we would like to keep it but it is unrealistic with all our other demands. This will be the first thing to get rid of. We do know that our settlement states the the company would still be paying for a chunk of the cost. After examination as a group we decided that it’s okay to get rid of it entirely.

– The Employer shall provide uniforms and the laundering and upkeep for all employees who are required to wear uniforms in accordance with the employer’s established policies. -The Contract

 

PROPOSAL:

Uniform: The Employer shall provide uniforms and the laundering and upkeep for all employees who are required to wear uniforms in accordance with the employer’s established policies. Average cost at $30

 

SETTLEMENT:

Uniforms: The Employer shall continue to provide uniforms but charge employees 50% of what was paid for them (i.e a $12 shirt will be an authorized Payroll deduction to the employee at $6). The employer will be responsible of the laundering and upkeep of the uniforms once a week, the rest will be of the employees responsibility. Average cost is $30.

 

 

Economic Factors  (Joel)

 

INFLATION:  1.5-2.0 percent every year. The food price and energy price is going up. Having these prices increase in the favor for the union workers is to put pressure on the employer. These raises will help offset the growing cost of living (the necessary stuff to sustain a good quality life).

 

UNEMPLOYMENT RATE: 3.2% within the state of Minnesota. Looking at this unemployment rate it is easy to understand why employees may ask for such a high demand in wages or other benefits. Companies are having an extremely hard time finding employees. This allows for the employees to negotiate for a lot of different things. If an employee does not receive the things that he or she may want it is easy for that employee to leave that company.