Partnering? Benefit improvements with little or no increase in the percentage of cost sharing. That's the bottom line demand for the unions on health care insurance. "These benefits are not gifts, we earned them and bargained for them. We believe the improvements are warranted." The CBC acknowledged that health care costs are going up, but pushed for GE to become part of the solution. "We are not the enemy and can be an effective partner for change," GE was told. "We challenge you to work with us and take a leading role in the public policy debate."
Honoring Those Who Paved the Way. "It's important for GE to realize that it's finally time to take care of those who helped make the company what it is today," said IUE-CWA GE Conference Board Chairman Bob Santamoor as he kicked off a lengthy discussion on the need for pension improvements and an automatic cost-of-living adjustment for retirees. The focus was on those who have been out for a long time and have seen their pensions eroded by inflation. Those retirees made "peanuts" for salaries and had no opportunity to participate in the S&SP program. "You have a responsibility to those who have outlived their pension," Santamoor said.
Retirees Speak Out at the Table. Former IUE-CWA Local 761 President Randy Payton, now retired, gave an impassioned speech about the generation that sacrificed so much and now are left behind. "With the overfunding you can make the changes and not jeopardize the solvency of the fund," he said, referring to the nearly $16 billion extra in the pension fund. "Now is the time to do it." Negotiators read letters retirees sent to CEO Jeff Immelt asking for an increase. One told of his widowed mother who is losing her house because of the paucity of her husband's GE pension. Her son, now also a GE retiree with 34 years of service, worried that could be his family's future as well. Another urged Immelt to "let your conscience be your guide." "How do you sleep at night in your luxurious home knowing that the people that got you there are sometimes struggling to have a home?" Longtime pension advocate Helen Quirini of IUE-CWA Local 301 in Schenectady, N.Y., said GE should be "ashamed" for the way it treats retirees. "It's our trust, not yours," she said. Retirees need a "systematic way to keep up with inflation," added IUE-CWA Local 201 Retiree President Kevin Mahar. "Our retirees are crying out for a major shift in thinking."
Cherry Picking. Negotiators added their thoughts on the subject as well. They were especially incensed that GE stoically sat throughout the presentations and simply responded by saying the unions' representation was limited to active members only. "You use these negotiations to pass on increases in retiree health care costs, but not increases in income." "Doing what your rights are, and doing what's the right thing to do are not always the same." "It's not a question of legality, but of morality." GE negotiator Bill Casey said he would "pass the message on."
The Economics of Health Care. GE brought in a guest speaker to look at the larger picture of health care insurance. The subtext seemed to be that GE workers are lucky to have the benefits and cost structure they have. The unions weren't buying it. The speaker did point out that uninsured Americans not only pose a cost to society, but a cost to those like GE, who provide insurance. So GE may want to rethink its cavalier response that universal health care isn't its problem.
The Economics of GE. GE doesn't want to talk about how profitable the company is except to point out how its profit per industrial employee in the United States has dropped by $32,000 since 2002. Profits in the industrial unit were flat overall, but with the two units – advanced materials and plastics – that were sold taken out of the equation, it would show significant growth. Infrastructure also shows strong growth and health care profits are up somewhat. One of the bigger growth areas for GE is financial services. The unions pointed out that a key part of those profits come from financing for purchases of GE products such as aircraft engines and turbines.
The Economics of the Pension Plan. GE spent an afternoon reviewing its plan structure (it took an afternoon because of how complicated it is to calculate a pension). Again the subtext was that GE workers are lucky to have the benefits they have. Again, the unions aren't buying it.
Despicable Tactics. IUE-CWA challenged GE on its behavior in a recent organizing campaign in Florida. A member from the new unit joined negotiators at the table and outlined how GE held one-on-one meetings, told the workers they would lose their local work rules and threatened to disband their work zone. "We are waiting for the other shoe to drop. The attitude is that there will be repercussions," the worker said. GE assured him there would be no reprisals.
Service Shops. Members from service shops flew in to drive home the point that the workers in the service shops are dedicated to serving the customers, sometimes to the detriment of their family and health. Key issues are a bonus for nuclear work, limiting the use of vendors and retirees in the shops and excessive scheduling leading to worker fatigue. Negotiators also asked for higher pay for work performed in Mexico and Canada.
Skilled Trades. Show us the money was the theme for skilled trades representatives. The company keeps losing workers because they are underpaid. "You are losing the skill base and pay for it in lost productivity because of the increased downtime."
