Union workers at Federal Mogul have new 4-year contract - KTTC Rochester, Austin, Mason City News, Weather and Sports

Union workers at Federal Mogul have new 4-year contract


LAKE CITY (KTTC-DT) -- After months of confrontations with their company, unionized workers in Lake City have a new four-year contract.

The 420 workers at Federal Mogul's two auto parts plants now have a stable work environment for the next four years.

It came with the help of a federal mediator who met on June 18th with negotiators from Federal Mogul and Boilermakers Local 650.  After voting down a company proposal in early July, the union membership ratified a counter-proposal created by union leaders but there were deep divisions.  It was approved by only two votes.

Federal Mogul accepted the union's counter-proposal on Friday, rather than face the prospect of a strike. 

Union vice president Dan Luhmann says workers had to accept a two-tier pay system--newer workers will always make three dollars an hour less than those who have been there for many years.

"It had been a sticking point," said Luhmann.  "But it will help us to be more competitive, to get more work."

Luhmann says the other difficult thing for union members to swallow involved health care premiums.  The workers will be switching to Blue Cross Blue Shield of Illinois for their coverage, and their premiums will more than double from what they have now.

Powered by Frankly