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17 May 2004
Vote to renew contract 'most important in local's history'
IUE-CWA | TNG Canada
Local 80400
Heeding a strong recommendation from their
bargaining committee, workers at the La-Z-Boy Canada Ltd.
plant in Waterloo, Ont., voted heavily in favour of a new
three-year contract on Friday.
"This was, without doubt, the most important contract vote in this
local's history," says Chris Grogan, president of Local 80400, the
manufacturing sector of TNG Canada/CWA. "If this contract had
been rejected we would have been on strike or locked out at
12:01 a.m. on May 31st."
"In the event of a work stoppage," he explains, "the
company had the space and capacity to transfer our work to their
non-union operations in the United States. Given the current
corporate climate, I believe that they would have wasted no
time in doing so. The consequences of a work stoppage may have
left us with less work or no work at all."
With 81 per cent of the 385 eligible members turning out to cast ballots,
the vote was 238 (76.8 per cent) to 72 in favour. The members had rejected
an earlier contract offer from the company, with 69 per cent voting against
the deal.
- Wage increases of two per cent, two per cent
and two per cent effective on Jan. 1 in each year, beginning in 2004.
As a result of the wage increase being made retroactive to Jan. 1, the average member
will receive back pay of approximately $300. The members in "cellular
manufacturing" will receive an additional 10 per cent on
their base rate in the first year.
- Improvements in dental coverage including, for the first time,
Major Restorative (dentures) coverage of $500 per year and $2,000
lifetime maximum coverage in Orthodontics (braces) for dependent
children. The dental reimbursement was also increased to 80 per cent
at current Ontario Dental Association yearly schedules for all
other items, including twice yearly check-ups.
- Modified overtime language so that members cannot
be forced to work more than two consecutive weeks of mandatory overtime; limited
mandatory overtime to five hours per week during the prime summer
months of July and August.
- More flexibility in vacation by ending the
summer shut-down. This allows members to have more say as to when they take vacation. Vacation
weeks range from two weeks per year for less senior members and tops
out at six weeks per year with 25 years seniority.
- Major increase in life insurance benefits for the family.
- Full payment on prescription safety glasses;
increase in the reimbursement for safety footwear of up to $95 a year and the company now
pays the fees for a Costco membership.
Grogan says positive steps have been taken in the area of cellular manufacturing
(in which a small group of employees take a product from start to finish).
"We were able to negotiate the 10-per-cent increase on the base
rate for cells in addition to the 2-per-cent yearly increase, which
will improve future earnings. The reduction in the size of the cell teams
has improved the earnings already. In fact, the averages for this
quarter range from $19.50 per hour to as high as $22.75 per hour before
both increases are applied and we believe that the current
cells and the new cells coming in can improve on this."
"On behalf of every member of Local 400, I would like
to thank International Representative Don Riger for the excellent
work he did on this agreement," adds Grogan. "This is
a good contract, but it would not have been this good and would
not have passed without his assistance."
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