International Brotherhood of DuPont Workers

 

Jim Flickinger - President     

Donny Irvin - Vice President/Communications     Tony Davis - Vice President/ Organizing

Dave Gibson - Secretary/Treasurer 

Kenneth Henley - General Counsel 

"Workers Representing DuPont, Bemis and INVISTA Workers"

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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

 

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Enhanced SIP becomes the sole company provided retirement vehicle, not eligible for the Pension Plan

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Maximum five  weeks of vacation

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No company subsidy for retiree health care or retiree life insurance

 

 Effective 1/1/08

Current U.S. Employee Changes

Savings and Investment Plan (SIP)

 

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New company contribution of 3% of pay in addition to company match.  Fully vested with three years of service

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$1.00 matching company contribution per $1.00 employee contribution up to 6% of pay

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Pay defined as normal Annual Earnings plus variable compensation, LPBC, the Sales Incentive Compensation program and all overtime

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Broad array of investment options with investment advice tool

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Loans available limited to two at one time

 Effective 1/1/08

Current U.S. Employee Changes

Pension & Retirement Plan

 

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Current benefit formulas applied for service through 12/31/07

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New pension formulas apply for service beginning 1/1/08

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Pension formulas are reduced to 1/3 of current levels (formula C will be a minimum level of benefit for service through 12/31/2007)

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Both segments of benefit will grow with any future pay increases until retirement

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Company paid survivor benefit will not continue to grow with pay or service after 12/31/07

 

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.

Send mail to jimflickinger@dupontworkers.com with questions or comments about this web site.