NEWPORT NEWS, Va. (WAVY) - Members of the United Steelworkers Local 8888 have voted yes for a new contract with Huntington Ingalls Industries.
This contract ensures the 11,000 workers in the union will have a job for the next four years. The new contract includes raises of $16,400 over the term of the contract, cheaper health insurance and better pension benefits.
Huntington Ingalls Industries said the members voted 1,914-104 on the measure.
"We participated in a productive process that yielded win-win results," said NNS Vice President of Human Resources and Administration Bill Bell. "This offer contains solid improvements, is fair, competitive in the industry and worthy of our great shipbuilders. Establishing this contract will help Newport News Shipbuilding meet our ongoing commitments to shipbuilders and the U.S. Navy as we continue to build the world's best ships."
Huntington Ingalls explained some highlights of the contract:
- Wages: On day one, all represented employees receive 3.5 percent increases. The next 13-month increment will be a 3 percent increase, followed by a 3.5 percent increase for each of the last two 13-month periods of the contract. This translates to a 14.2 percent increase over the life of the contract, which averages to a 3.1 percent increase per year per employee.
- Shift differential (additional pay for work shifts outside a standard day shift): Increases 25 cents to $1.50, effective immediately.
- Pension: For employees hired on or before June 6, 2004, who retire at age 62 with 30 continuous years of service, the monthly pension increases to $1,450 starting Aug. 1. In addition, there will be a $25 per year supplement given to employees for each year of credited service after 30 years. The monthly pension increases to $1,550 beginning Aug. 1, 2015, and the yearly supplement will increase to $30 per year for each year of credited service after 30 years. For example, an employee with 35 years of credited service on Aug. 1, who qualifies for the $1,450-per-month pension, will receive $1,575 per month. NNS will continue to provide a Pension Earning Plan benefit for employees hired on or after June 7, 2004. Pension benefits are calculated by a formula based on a percentage of eligible earnings. The monthly benefit is generated by company contributions equivalent to 5 percent of total compensation.
- Medical benefits: Maintained current premium cost-sharing for current and future years. Through some plan redesign, employee premiums were decreased for the July 2013-June 2014 plan year with an agreement on a new renewal rate methodology.
- Paid sick or personal leave: Employees who miss less than six hours during a calendar quarter will earn eight hours of sick or personal time. Employees who have perfect attendance in a calendar quarter can earn 10 hours of sick or personal time.
The new agreement will go into effect immediately.
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