MADISON, Wis. — The Office of Professional Employees International Union Local 39 has approved a new four-year contract with CUNA Mutual Group that focuses on what the union said was its No. 1 concern: job security.
Negotiations between the union and CUNA Mutual started on Feb. 12, and the agreement was announced on April 23. The contract includes two new components proposed by the union that aim to improve job security. One is a buyout program made available to longer service employees, giving them the option to choose one of two payment options. The other is a 12-month moratorium on reductions in workforce.
"CUNA Mutual had laid off over 400 of our members since the last contract, we wanted to offer our members an opportunity that if they wanted to leave they could," said Debi Eveland, business agent for the union. "Job security was our No. 1 priority. We are hoping that between the moratorium and the buyout program, we have put layoffs behind us.
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Rick Uhlmann, senior manager of media relations at CUNA Mutual, said that previous contracts allowed CUNA Mutual to transfer and send work to different CUNA Mutual locations and outside companies, but the moratorium will not allow any transfers for the next 12 months. After a year, if CUNA Mutual decides to transfer and send work to other locations and companies, and if it involves more than 40 people, CUNA Mutual will meet and discuss it with the union.
"This was a means to meet union concerns," Uhlmann said. "And it gives us the opportunity to step back and evaluate and see what has worked and what needs improvement."
The last contract between the union and CUNA Mutual took more than 16 months to ratify, and Uhlmann said that both sides had pledged to improve the process in 2008.
"Both parties didn't like the way previous proceedings went," Uhlmann said. "This time both teams had new people and new attitudes that allowed for more creativity which made it more timely."
Both the union and CUNA Mutual said the new agreement contributes to an improved relationship between the two parties.
"We had very open discussion and both sides listened to each other and tried to resolve issues," Eveland said. "I think both sides feel this contract will help meet future challenges."
Eveland said that the union's key issues were job security, cost reduction and quality improvement, profit and dividend sharing, improved relationship, a buy-out window, and salaries and benefits. She added that the union feels the contract has addressed most of the issues in one way or another.
"Bargaining is not a one-way street, where one side bargains and the other collects," Uhlmann said. "Getting the give-and-take to work well isn't always easy. It is extremely hard, but necessary work."
The agreement provides a more market-competitive benefit package, an across the board 2% wage increase for unionized employees in 2008 and a 3% increase in each of the final three years of the pact.
Other key components of the contract include:
A commitment to build a better working relationship between the company and the union. Uhlmann said that one example of this is working together on continuous quality improvements and that both parties see the benefit of improved communication and collaboration.
A commitment to work jointly on continuous quality improvements. Uhlmann described this component as a "commitment for the company and the union to work together and engage employees to continuously improve products, services and technology."
An increase in health-care premium cost sharing. Currently the company pays 89% of health care costs. Employee cost sharing will increase to 13% in 2009, 15% in 2010 and 18% in 2011 and 2012.
Benefit plans the company continues to offer include a pension, a 401(k) plan, a Health Retirement Account, a dental and vision plan, as well as vacation, sick and personal days. Short- and long-term disability coverage is also include in the contract.
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