September 01, 2015

As Strike Continues, Pantex Operator Touts ‘Upgraded’ Contract Offer Being Prepared for Non-Unionized Employees

By ExchangeMonitor
On the fourth day of a strike involving roughly one-third of the general workforce at the Pantex Plant, leadership of plant management contractor Consolidated Nuclear Security told non-unionized employees that they are preparing to distribute an "upgraded" contract package to them, in a message distributed yesterday by CNS President and CEO Jim Haynes and COO Morgan Smith to the non-unionized workforce. Details of the proposed package seem to largely resemble the "best and revised final offer" that that 87 percent of Pantex workers represented by the Metal Trades Council (MTC) voted not to ratify on Thursday, according to a message about benefits that Smith sent to all CNS employees on Aug. 26, one day before the vote.
 
In yesterday’s message, Haynes and Smith said the package was competitive compared to other industries in Pantex’s region nationwide. “Throughout this contract it has been our sincere desire to maintain wages and benefits that appropriately recognize the important work performed at our sites,” the message reads. “However, as has been stated in prior communications, our initial set of changes had greater impact on those involved than was originally anticipated. We are in the process of rolling out an upgraded package for next year in an effort to improve this situation. We worked to reflect this revised approach in the MTC package so that we remain in a very strong position when compared to other industries in the sites’ regions and across the country, including pension programs and other benefits.” 
 
Compared to the original “best and final offer” CNS issued in early August, the revised (but still rejected) offer conceded in some areas, including pension contributions and retiree health benefits. For example, the revised offer proposed that workers contribute 0.5 percent of their salary to pension plans for each of the next two full calendar years. The proposed 2017 pension payment would have halved the 1 percent figure outlined in the early August offer. Pantex workers currently do not pay anything toward their pensions. The revised offer also proposed a 7 percent yearly reduction in healthcare cost-share burdens for retirees compared to the previous best offer. The latest offer would have required retirees to pay 20 percent of their healthcare premiums in 2016, 21 percent in 2017, 22 percent in 2018, and 23 percent in 2019.
 
Haynes and Smith cited a need for labor agreements to reflect a balance between employee appreciation and prudent use of taxpayer dollars. “Tax dollars are used for all aspects of our work, including funding programs, engineering, research, procurements, maintenance, security, safety, other essential business functions, as well as employees’ salaries and benefits,” they said. “Therefore, the challenge is to appropriately balance the recognition of the roles of our employees in accomplishing our unique mission while being respectful of taxpayer funds.” 
 
Officials have told Weapons Complex Morning Briefing that neither MTC nor CNS appear to be moving closer to the bargaining table, and MTC President Clarence Rashada said Sunday he did not expect contract negotiations to resume for another two or three weeks. Haynes and Smith added: “We revised our best and final offer last Thursday to what we understood would best achieve the desires and constraints of all parties, and with the strike, we now know that there remains a disconnect between what we are in a position to provide and what MTC members desire.”

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