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."