One major change Indianapolis UAW workers agreed to was an hourly pay cut — production workers will now earn an hourly base wages of $17, down from $22 and skilled trades workers will earn $23 per hour, down from $27.39.
Navistar also offered a $10,000 retirement buy-out to eligible workers.
Health insurance premiums were increased dramatically, said Jason Barlow, president of UAW Local 402 in Springfield, and will cost an individual $167 per month.
“Anyone under the Master Contract basically did not pay premiums before, so now they’re looking at an increase in health insurance costs on top of a pay cut,” he said.
The new Indianapolis contract will also reduce paid vacation to two weeks, eliminate annual pay raises to adjust for inflation and eliminate rules that kept the company from moving work to outside suppliers.
Master recall, which allowed laid-off workers to move to another facility then return to their home plant when a job became available, was changed to a one-way program.
Once a worker chooses to move, there will no longer be the option to return home, Barlow said.
Union representative positions were consolidated and other union officials, both full and part-time, are now back on the production line in part due to a reduction in workforce, Barlow said.
Master contract negotiations are likely to begin Aug. 30 or Sept. 8, with national meetings held in Louisville, Kentucky and Springfield-area meetings to be held at a central location for attendees.
That contract governs production facilities in Melrose Park, Ill. and Springfield, Fort Wayne engineering and various parts depots.
Barlow said there is no way to know if the company’s offers to workers in Indianapolis are precursors to what other UAW members might see in upcoming negotiations.
The outcome of the Indianapolis foundry negotiations will have no impact on the master contract as the two agreements are completely separate, Wiley said.
“As always,” Barlow said, “we want a fair contract. We realize times are tough, but the company is making money and we’ve made concession after concession.”
Contact this reporter at (937) 328-0371 or elroberts@coxohio.com.
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