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About Northwest labor press. (Portland , Ore.) 1987-current | View Entire Issue (July 5, 2013)
...Daimler strike (From Page 1) that employ Machinists in Oregon and Washington. The trust had major losses in the financial crash that began in 2008, and participating employers are legally obligated to pay extra to make up the shortfall. Daimler’s rehabilitation sur- charge will reach $5.58 an hour by 2015 — and that’s in addition to its regular $4.47-per-hour pension contribution. The financial crisis may have caused the pension shortfall, but past decisions by Daimler made it worse. Fifteen years ago, the Portland plant had over 2,000 production workers; today there are 725. By shifting production to Mexico and North and South Carolina, Daimler caused the pension to become top- heavy, with relatively few active em- ployees, and many retirees and inactive former employees. And the company isn’t the only one feeling the pain of the pension losses. The losses forced pension trustees to cut the rate at which benefits accrue, and eliminate supplemental disability cov- erage and a subsidized early retirement benefit. The pension surcharge pertained only to the machinists, but Kear said the four unions stood together throughout the joint bargaining. The pay and health care premium increases were the same in all four contracts, which were voted on separately. Machinists and Painters members determined that the proposed wage in- creases — 60 cents, 40 cents, and 30 cents — weren’t enough, coming after a four-year wage freeze. And many workers felt they never really caught up after agreeing to wage concessions in 2001 under company threat of plant closure. Wages were $19.05 then, and are $23.25 today. Workers also said they want to share the economic benefits of increased pro- ductivity — not just the costs. Since a system of “lean” manufacturing and continuous improvement was intro- duced several years ago, productivity at the plant has increased 25 percent. The same number of trucks are produced, but with 25 percent fewer workers. Layoffs — like the 250 workers let go March 1, have swept the assembly line of younger members. Those who remain take retirement benefits very se- riously. When during the contract dis- cussion one Lodge 1005 member asked how many in the room were 50 or over, at least half the hands shot up. Past concessions have created three tiers of retiree health benefits: New hires have no company-paid health ben- efits when they retire; a previous group gets health benefits until they turn 65 and become eligible for Medicare; the oldest group, numbering 111, gets that, plus supplemental insurance after they turn 65. Eliminating the post-65 cover- age was like salt in a paper cut, one worker told the Labor Press. Despite its flaws, Lodge 1005’s bar- gaining team recommended approving Daimler’s offer, saying at the time that it was the best they expected to see from the company. But they weren’t sur- prised at the outcome. Lodge 1005 members turned down the company’s offer in a 102 to 309 vote, and then voted to strike by an even greater margin, 359 to 48. “Money is not the bottom line,” said one Lodge1005 member. “Personal pride is.” Of course, money and personal pride are linked. Workers know truck sales are booming and quarterly profits are increasing. Yet their wages have been frozen. Every day to get to work, they go through the employee entrance, passing knee-high weeds by the em- ployee parking lot and crossing railroad DAY ONE ON STRIKE AT DAIMLER: Machinists Local 1005 members Todd Barnes, Jeff Bowes, Mike Brandt, Mike Coelho, and Terry Weese picket outside a plant gate six to noon July 1. tracks. Three years after Lodge 1005 bargained into its union contract a com- pany commitment to improve ventila- tion in malodorous restrooms, that has- n’t happened. Meanwhile, company managers drive Mercedes Benzes into separate parking lots through landscap- ing maintained by SEIU Local 49 members. They eat in separate areas, and have separate, cleaner, restrooms. “They consider themselves above and apart from employees, and the em- ployees feel it,” Kear said. Pickets began Sunday at midnight, and continue 24 hours a day at three en- trances to the truck plant, as well as a fourth location where pre-delivery in- spections are performed. (International Standard Serial Number 0894-444X) Established in 1900 at Portland, Oregon as a voice of the labor movement. 4275 NE Halsey St., P.O. Box 13150, Portland, Ore. 97213 Telephone: (503) 288-3311 Editor: Michael Gutwig Staff: Don McIntosh, Cheri Rice Published on a semi-monthly basis on the first and third Fridays of each month by the Oregon Labor Press Publishing Co. Inc., a non- profit corporation owned by 20 unions and councils including the Oregon AFL-CIO. Serving more than 120 union organizations in Ore- gon and SW Washington. Subscriptions $13.75 per year for union members. Group rates available to trade union organizations. PERIODICALS POSTAGE PAID AT PORTLAND, OREGON. CHANGE OF ADDRESS NOTICE: Three weeks are required for a change of address. When ordering a change, please give your old and new addresses and the name and number of your local union. POSTMASTER: Send address changes to NORTHWEST LABOR PRESS, P.O. BOX 13150, PORTLAND, OR 97213-0150 PAGE 2 NORTHWEST LABOR PRESS JULY 5, 2013
