I have been following the threads and talking with co -workers about the recent company proposal regarding health care. No one I have talked with would vote for a contract containing such a give back.
I believe that UPS knows that such a proposal will never be in the final offer. The real question is what are they really after and believe they can get from the union? When I think about older contracts "divide and conquer" is one the company's main negotiating tools. So here is my take on what the company really wants to get.
The elimination of health care benefits for part-time employees. Under Obamacare, an employer does not have to pay a penalty if they do not insure an employee who logs less than 30 hours a week average. Obviously that would include 99% of part-timers. I can see the company offering the union an increase in pay for part-time employees, dropping the new health care premium proposal for all full-time employees, and sweeten the pot for full timers to vote yes with such things as an increase in the pension over the five years of this contract, better raises, better language on 9.5, maybe a signing bonus etc. The company could also go the route of red circling current part-time employees or red circling part-timers with X number of years, eliminating benefits for new hires or part-time workers with less than X years in. What ever it takes to get enough votes to say good bye to company provided health benefits for part-time workers, either all of them, some of them or just future hires.
UPS would give up quite a bit to the full time ranks to eliminate the health care costs for 70% of the work force. Since a majority of part time union members do not ever cast a vote, I feel UPS sees an opportunity between scare tactics and better than expected proposals to get enough full time (and if needed senior part-time) union members to vote their own self interest.
When you consider the money UPS would not pay out for part-time health care from here on out they can be very generous in an effort to buy the votes they need. The contract is for 5 years, The savings on eliminating health care is for the life of the company.
22.3 jobs would also be under more pressure. Every 22.3 job eliminated or not filled by a full time worker would save the company a lot of money since it would be covered by two uninsured part timers.
Divide and conquer. Threaten someone with a "10 blade so when you stick them with something smaller it does not hurt as bad. Same result, you eventually bleed to death, just not as fast.
I believe that UPS knows that such a proposal will never be in the final offer. The real question is what are they really after and believe they can get from the union? When I think about older contracts "divide and conquer" is one the company's main negotiating tools. So here is my take on what the company really wants to get.
The elimination of health care benefits for part-time employees. Under Obamacare, an employer does not have to pay a penalty if they do not insure an employee who logs less than 30 hours a week average. Obviously that would include 99% of part-timers. I can see the company offering the union an increase in pay for part-time employees, dropping the new health care premium proposal for all full-time employees, and sweeten the pot for full timers to vote yes with such things as an increase in the pension over the five years of this contract, better raises, better language on 9.5, maybe a signing bonus etc. The company could also go the route of red circling current part-time employees or red circling part-timers with X number of years, eliminating benefits for new hires or part-time workers with less than X years in. What ever it takes to get enough votes to say good bye to company provided health benefits for part-time workers, either all of them, some of them or just future hires.
UPS would give up quite a bit to the full time ranks to eliminate the health care costs for 70% of the work force. Since a majority of part time union members do not ever cast a vote, I feel UPS sees an opportunity between scare tactics and better than expected proposals to get enough full time (and if needed senior part-time) union members to vote their own self interest.
When you consider the money UPS would not pay out for part-time health care from here on out they can be very generous in an effort to buy the votes they need. The contract is for 5 years, The savings on eliminating health care is for the life of the company.
22.3 jobs would also be under more pressure. Every 22.3 job eliminated or not filled by a full time worker would save the company a lot of money since it would be covered by two uninsured part timers.
Divide and conquer. Threaten someone with a "10 blade so when you stick them with something smaller it does not hurt as bad. Same result, you eventually bleed to death, just not as fast.
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