Special Bulletin 10/22/19: Wabtec announces layoff

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As the union has been communicating for the past three months, potential layoffs have become a reality. Yesterday, UE Local 506 was provided notice of a permanent lack of work by Wabtec Union Relations. The Local is working with the Wabtec to identify potential opportunities to mitigate the impact on members. In addition to encouraging the company to filter work in from other facilities, the union has suggested Wabtec “ask from the top and force from the bottom.” This would allow higher service members to voluntarily take a layoff in lieu of lower service members being forced. Volunteers would be afforded contractual IEA lump sum payment and protected benefits with the understanding that they would forgo recall rights. Participants would also be eligible for their 2020, 3% annual and 10% one-time 401k contributions. This option would also qualify volunteers for UC benefits and TAA.  The company has stated that the expense of IEA benefits for higher service employees are the greatest concern. The Union will continue to encourage the business to consider both options+.     

The Union is also meeting with NWPA Rapid Response this afternoon to prepare for the event. Our goal will be to ensure any member impacted will be afforded all benefits available.

Considering the circumstances, the Members Involvement Meetings scheduled for October 23, 2019 will be postponed until a later date. We will communicate when the meeting will take place when we determine the appropriate time to reschedule.

The following list displays the estimated impact by classification provided by the company on October 21, 2019.

Classification

       Quantity

Assembly Technician 1

3

Assembly Technician 2

26

Fabrication Technician

1

Machinist 2

1

Machinist 3

1

Paint Technician

1

Production Technician

41

Weld Technician 1

6

Weld Technician 2

13

Grand Total

93

 

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Strike Settlement

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This STRIKE SETTLEMENT AGREEMENT (“Agreement”) reached the 6th day of March 2019, between WABTEC CORPORATION (“Company”) and the UNITED ELECTRICAL, RADIO AND MACHINE WORKERS OF AMERICA (UE) and its LOCAL UNION NOS. 506 and 618 (“Union”) (the Company and the Union are sometimes collectively referenced as the “Parties”), includes the following terms and conditions:

On behalf of its members, the Union agrees to terminate its strike and return to work subject to the terms of the March 6, 2019 Memorandum of Agreement (the “Interim Agreement”) and this Agreement.  No compensation will be paid by the Company for any time not worked due to participation in the strike.

On or before 6:30 AM on Monday, March 11, 2019, the Union will remove all tents, chairs, signage, barrels, pallets, firewood, garbage and other debris from the exterior of the Company’s Erie Plant.

Employees will return to work beginning at 6:30 AM on Monday, March 11, 2019.  Employees will be reinstated to their pre-strike job classifications and shift assignments without loss of seniority.  By close of business on March 8, 2019, the Company will provide a list of employees for whom no work is immediately available.  These employees will not be required to report for work but will be placed on temporary layoff subject to the payment of Income Aid Extension benefits.

For those employees who are enrolled in medical, dental and other welfare plans sponsored by Wabtec, the Company will retroactively reinstate their coverage under these plans effective to Tuesday, February 26, 2019.  For employees who have not yet enrolled, Wabtec will provide retroactive coverage under the Company’s medical, dental and other welfare plans as long as such employees enroll prior to March 28, 2019.

Except for two employees identified by the Parties who will receive disciplinary suspensions, the Company will take no disciplinary action against any employee for any strike activities.  Further, both the Union agree that there will be no reprisals against, or discrimination towards, any employee, bargaining unit or otherwise, based upon his/her participation or non-participation in Union activities.  Nothing in this Agreement shall be construed to waive any pre-existing agreements between the Union and the Company requiring the Union to reimburse employees for strike-related property damage.

The Parties agree that the Company’s officers, directors and managers, and the Union’s officers, executive board, stewards and employees, will limit public comment regarding the Interim Agreement and this Agreement to a joint statement regarding the strike settlement agreement in the form attached as Exhibit A.  Upon execution of this Agreement, the Company will send this joint statement (on behalf of both Parties) to all news outlets in Erie and select outlets in Pittsburgh that have covered the Parties’ labor dispute.  The Union will simultaneously post the joint statement on their website.

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