MeadWestvaco: Wages, Pensions improved; Health Care maintained
Low Moor, Va.—United Steelworkers (USW) Local 8-490 members at the MeadWestvaco converting and services facility in Low Moor, Va., ratified a four-year agreement this week by a 70 percent margin.
The contract, which covers 154 production employees, features pension increases, wage increases, maintains the existing health care benefit package, lowers the percentage of premiums paid by workers, reduces certain retiree health care premium costs and substantially improves the allowance for safety shoes. The defined benefit pension was increased $4 per year of service and is retroactive to April 1, 2008.
USW Local 8-490 President Ray Plasters said despite negotiations taking longer than expected and being frustrating at times, the local’s perseverance paid off and workers were able to get a good contract that met the needs of themselves and their families. It was anticipated that a labor agreement would have been concluded within two months after the Nov. 1, 2007 contract expiration date, but the Low Moor facility was not the only MeadWestvaco location that had difficulty in negotiations with the company.
“By everyone sticking together through this time we were finally able to come back with a decent proposal for the membership to vote on,” Plasters said.
Workers will receive a $2,000 lump sum payment, a 2 percent immediate wage increase and additional 2.25 percent wage increases effective Aug. 31, 2009 and Aug. 30, 2010. Under the old contract, employees contributed 25 percent of the cost of health care premiums. This was reduced to 20 percent; however, there are some changes in the benefit reimbursement rates. Benefit levels are assured should the plan administrator change. If the USW and MeadWestvaco reach an agreement on a better health care plan, the Low Moor facility has the option to participate in it.
Previously, MeadWestvaco was making a $50 to $100 per month contribution toward retiree health care premiums. For retirees between 62 and 65 and approved disability retirees the company and the retirees will now split the cost of the premiums 50/50. This can mean between a $4,000 and $11,000 annual savings for retirees depending what coverage they elect. The safety shoe allowance increases by $40 per year in December 2008, and it increases an additional $10 in December 2010.
A number of language changes were adopted that provide more member protection and streamline the administration of company policies and procedures.
Plasters said he deeply appreciated the patience, support and hard work from USW International Vice President Jon Geenen and staff representatives Luis Mendoza and Ed Kemick.
The USW is the largest industrial union in North America and represents over 1.2 million members and retirees in the paper, steel, oil, chemical, metals, rubber, glass and service sectors.