IBEW 1245 has reached a tentative agreement in negotiations with Lockheed Martin Space Systems.
The union bargaining committee began negotiations with the company on April 1, in Sunnyvale, after accepting member proposals in February and March. The tentative agreement was reached April 8, in the form of a company Last, Best, and Final Offer, which was finalized and executed on April 9.
The term of the agreement is four years, from April 21, 2014 through April 22, 2018.
Wages in 2014 consist of a 3% lump sum bonus based on all hours worked in 2013, excluding any lump sum bonuses that year, plus a $2,700 ratification bonus, $1,500 lump sum bonus to be paid in December.
In 2014 the total ratification plus lump sum payments will average $6,900 per member. Members can elect to take payment or defer into their 401k plans.
Wage improvements in 2015 will consist of a 2.5% General Wage Increase, plus $1,500 lump sum bonus in December. Similarly, wage improvements in 2016 will consist of a 2.5% General Wage Increase, plus $1,500 lump sum bonus in December.
Wage improvements in 2017 will consist of a 2.5% General Wage Increase, plus $500 lump sum bonus in December.
The tentative agreement provides increases in both the defined benefit pension calculator and the company 401k contribution levels.
Health and Welfare (including retiree coverage)
The tentative agreement provides for increases in the Corporate Lockheed Martin HealthWorks PPO medical plan design, i.e. deductibles, out of pocket maximum; however the new plan design includes deductibles into the out of pocket maximum calculation which mitigates members’ exposure to plan design increases. The Kaiser plan design remains as-is.
Premium cost sharing remains unchanged for both plans at 87% employer and 13% employee for the HealthWorks PPO, and 85% employer and 15% employee with Kaiser.
The parties will meet in 2017, once the 2018 premium renewal rates are known, in an attempt to agree on plan design changes for any plan that would trigger the PPACA excise tax.
Effective Jan. 1, 2015 the dental plan will cover dental implants. There are no other plan design changes, no cost to employee.
In terms of vision benefits, there are no plan design changes for either plan. The Vision 24 plan remains no cost to employee; in the Vision 12 plan the employee cost share remains unchanged.
Life and AD&D benefits increase, and remain fully paid by employer for employee coverage.
There will be an increase in weekly benefit for Short Term Disability.
Member Explanation and Vote
The union’s negotiating committee is recommending a “Yes” vote, and is scheduled to present an all-hands member explanation at 10 a.m. on April 10 at the Sunnyvale complex, with members in Palo Alto and Santa Cruz conference calling in to participate.
Members will vote on the agreement April 17.
Serving on the union’s negotiating committee were: Employee representatives Todd Shiels and Dennis Douglass; IBEW 1245 Assistant Business Manager Ray Thomas, IBEW 1245 Business Representative Cruz Serna, and former IBEW 2131 Business Manager Jack Floyd