International Brotherhood of DuPont Workers
Jim Flickinger - President Tony Davis - Vice President
Donny Irvin- Secretary/Treasurer
Kenneth Henley - General Counsel
"Workers Representing DuPont, Bemis and INVISTA Workers"
International Brotherhood of DuPont Workers
Jim Flickinger - President Tony Davis - Vice President Donny Irvin- Secretary/Treasurer Kenneth Henley - General Counsel "Workers Representing DuPont, Bemis and INVISTA Workers" |
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ARBITRATOR ISSUES DECISION REGARDING DUPONT'S PENSION CHANGES
Back in August 2006, the Union filed a grievance over Dupont's changes to the pension and other benefit plans. These changes impacted the then current employees as well as employees hired on or after January 1, 2007. For employees hired before January 1, 2007, the changes cut their pension calculation to 1/3 of what it was previously and froze the survivor benefit to what it was as of December 31, 2007. For employees hired on or after January 1, 2007, the changes excluded them from the pension plan and from any subsidy for retiree health care or life insurance, and limited their banking of vacation and accumulation of vacation. The change that was beneficial - the initiation of a Company contribution to the SIP plan and the increase in the Company match to the employee's contribution to the SIP plan - was not a subject of the grievance. Dupont refused to have our grievance decided by an arbitrator, forcing the Union to go to Federal District Court and the the Federal Court of Appeals, each of whom agreed with the Union that the case should be heard by an arbitrator. The Company even tried to get the U.S. Supreme Court to hear the case but the Court turned the Company down. The case was heard by an arbitrator over a three day period back in May 2009. The Union and Company then each filed a brief and a second brief. In writing a 71 page decision, the Arbitrator ruled as follows: The changes to the Benefit plans for unit employees hired BEFORE January 1 ,2007 were in accordance with the contract and the Company's bargaining obligation. The change excluding unit employees hired ON OR AFTER January 1 ,2007 from the pension plan was in violation of the contract - as the Company did not provide one year's notice as required by the contract. All the other changes for these employees - including to retiree health care, life insurance, and vacation , was in accordance with the contract and the Company's bargaining obligation. The Arbitrator directed the Company and the Union to identify the employees hired after January 1, 2007 who were adversely affected by the change - the change being that of their exclusion from the pension plan - and to calculate the amount of harm and the most appropriate way of making them whole. The Arbitrator said that if the Company and the Union cannot agree, the Arbitrator will hold a compliance hearing and issue a decision on the remedy. Accordingly, the Union will make every effort to work out these issues with the Company but, if unsuccessful, the Union will have the Arbitrator resolve the matter. Right now, we are considering various proposals to put before the Company. I know many employees are disappointed with the Arbitrator's decision. As your attorney, I am also disappointed. A tremendous amount of time, effort and expense went into this case, in an attempt to do all we could to protect the best interests of our members. The facts are what they are, however, and sometimes the contract language and bargaining history, which is essential the same at all Dupont plants, results in a decision that is not entirely to our liking. You can take pride in the fact that your union is the only union representing Dupont workers, at any Dupont site in the world, that has taken this issue to an arbitrator. Despite our disappointment over this decision, we will see this case through to the end, and we will make every effort to secure the best possible resolution for the "new hires".
FEDERAL DISTRICT COURT, THE COURT OF APPEALS AND THE SUPREME COURT - ALL REJECT DUPONT'S ATTEMPT TO PREVENT ARBITRATION OVER THEIR ANNOUNCED PENSION CHANGES
IBDW MEMBER UNIONS CHALLENGE DUPONT’S SLASHING OF EMPLOYEE PENSION, BENEFITS By now all Dupont employees are familiar with DuPont's dramatic decision to slash the pension and other benefits provided to current employees and new hires. Rather than sit back and just complain, each of the member unions representing DuPont workers immediately filed a grievance at each of its member DuPont locations, challenging the right of DuPont to implement these changes. The grievance alleged that the changes violated the contract in numerous ways: by reducing the pension benefit to current employees; by treating new hires differently from current employees (for example, new hires get no pension, no survivor benefit, no retiree health care, less of a vacation benefit, etc.); by providing an additional SIP benefit to new hires in 2007 and not to current employees; and by announcing these changes without first bargaining with the Union (which also was alleged to have violated the National Labor Relations Act). DuPont must have gotten nervous because, rather than simply allowing the matter to proceed to an arbitrator, as it has always done in the past, DuPont filed a complaint in Federal Court in Richmond, Virginia to prevent arbitration. The Federal District Court ruled against DuPont. DuPont appealed to the Court of Appeals, which also ruled against DuPont. DuPont then sought to have the U.S. Supreme Court hear the matter but the Supreme Court refused to hear the case. As a result, the grievance in Richmond over the changes to the pension and benefit plans will be heard by an arbitrator, with the hearing scheduled for May 12-14, 2009. The Richmond Local will seek to have the arbitrator declare the changes a violation of the contract and order DuPont to undo those changes and make the employees in Virginia whole. That decision of the arbitrator for the Richmond employees will be used to benefit those employees at our other member union sites, and may ultimately benefit all DuPont employees generally. A special thanks to the leadership and members of IBDW Local 992 (Ampthill Rayon Workers) at Richmond, Virginia who have financed and worked tirelessly to have this case heard in arbitration. (Scroll Down To View Pension Changes)
DuPont Employees Take Hit On Announced Pension Changes
DuPont unveiled its planned changes for the pension plan at 9:00 am on August 28, 2006. However, this unveiling left nothing to marvel at or to celebrate. Employees took another direct hit from the Company's floundering leadership. In its announcement, DuPont announced the following: Effective 1/1/07 U.S. New Hire /Rehire Changes
Effective 1/1/08 Current U.S. Employee Changes Savings and Investment Plan (SIP)
Effective 1/1/08 Current U.S. Employee Changes Pension & Retirement Plan
What Does All This Mean? Beginning in 2007, all newly hired employees will have to depend on their savings instead of a company funded pension fund. The Company will contribute 3% of the employees pay into employee's SIP account. The Company will then match employee contributions up to 6%. Beginning in 2007, all new hires will be capped at a maximum of 5 weeks vacation. Beginning in 2007, all new hires will not have company provided health care once they retire Beginning in 2008, DuPont's pension calculation will be reduced to one-third of its current level for all current employees. The Company paid survivor benefit will not continue to grow with service or pay after December 31, 2007. |
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Send mail to jimflickinger@dupontworkers.com with questions or comments about this web site. |
