Some More Details -- Of The New Three-Year USW Local No. 10-86 Contract

A few more details of the now operative three year collective bargaining agreement at Merck's West Point, Pennsylvania facility have emerged -- from the USW Local No. 10-86 members' forum (one of my earlier background posts, here):

. . . .I suggest contacting your shop steward or CAT team member, as there are many printed copies [of the proposed contract] circulating. . . .

In my opinion, the minuses outweigh the pluses. In short, there are annual wage increases over the three years of the contract of 2%, 2%, and 3% and a signing bonus of $3000 of you're eligible for full COLA ($2500 if you have not reached your full COLA). Section 23.2 and section 12.7 are troubling -- 23.2 gives the Company right of assignment (in a merger, reverse merger or other organic transaction, in whole or in part).

Section 12.7 gives employees the right to bypass the union concerning representation during the grievance process, a provision that is of questionable legality, at least in the state of Pennsylvania. Also eroded are the production bonus, disciplinary process, sick day payment, life insurance coverage, etc. The contract implements a two tier wage structure with new hires starting at 65% of full rate -- with a "catch-up" clause, spread over a 10 year period. . . .

[Ed. Note: slightly edited, very small changes, for clarity and context.]

My reaction? These were likely the best terms reasonably available, given the overall economic situation, and Merck's relentless drive to downsize its workforce by an additional 15 percent after the Schering-Plough bust-up closing, back in November 2009 (on top of all the other downsizings over the past three years).