UE Local 506

On March 12, 2019 the UE 506 and 618 negotiating committees met with Wabtec negotiators. This was the first negotiating session since the parties were able to reach an interim agreement on March 6, 2019. During the first session of negotiations the committees exchanged proposals and found common ground on a number of noneconomic contract issues. We will continue to work hard on coming to a fair and  equitable agreement for both parties.

The 90-day interim agreement that governs our working terms and conditions has been posted on the UE Local 506 website.

Prior to negotiations, UE representatives reported several incidents of irresponsible and disrespectful treatment of members and union representatives on the shop floor. Since our return to work, there have been multiple reports of members, stewards and the executive board members harassment, intimidation and total disregard for safety. We are addressing these issues.

Our top goal is always the safety and well-being of our members, so please be aware and remain on high alert to any danger in you work surroundings, and that of your coworkers.  Three members have been injured since returning to work on Monday—this is why we take work conditions so seriously.  Unnecessary work injuries are unacceptable, and Wabtec’s lead negotiator has committed to addressing our concerns.

Many members are also reporting unnecessary disciplinary actions since returning to work.  If you are in a discussion with management that could lead to discipline you have the right to request representation (Weingarten Rights). If you would like to file a grievance you can request to speak to your steward. If you are unreasonably denied please notify your Chief Steward on your break. Once the hall is notified, we can address these issues with HR as they arise.

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Download this agreement as a PDF file

This STRIKE SETTLEMENT AGREEMENT (“Agreement”) reached the 6^th 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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Wabtec and UE Locals 506 and 618 announced today that they have reached an agreement to end the strike at the Company's Erie, Pennsylvania manufacturing facility. Full statement:

On Social Media

• Download this sign ("_____ Supports UE 506 & 618 Strikers #Solidarity4UE") and print
• Write your name or organization on the top part of the sign
• Take a selfie or group photo holding the sign (or multiple signs), and post on social media with the hashtags #Solidarity4UE and #EndCorporateGreed
• On Twitter, please tag the company (@WabtecCorp)
• Add this frame to your Facebook profile picture

At Wabtec HQ

If you can make it to Wilmerding, PA (just outside of Pittsburgh) on March 6th, there will be a solidarity rally at 3pm at the intersection of Westinghouse Avenue and Station Street. Join striking members of UE Locals 506 and 618 from Erie, PA, together with members of UE Local 610 who work at Wabtec in Wilmerding, to send a message to Wabtec Headquarters: our communities need family-supporting jobs! Members of 506 and 618 are on strike because Wabtec imposed new working conditions after purchasing the plant from GE, including mandatory overtime, wage cuts of up to 38% for newly hired and recalled workers, and using temps for up to 20 percent of the work. Show your support in this fight for the rights of all workers to stand up to corporate greed by joining us in Wilmerding! RSVP on Facebook here

Executive bonus packages dwarf wage reduction impacts on Erie economy

CONTACT Scott Slawson: 814-899-3108

(February 28, 2019) ERIE, PA— As 1,700 hourly workers remain locked out of the Wabtec plant in Lawrence Park, Pennsylvania, an economic impact study by nationally recognized firm, Parker Philips, shows the negative economic impact the proposed wage reductions would total about the same amount as Wabtec Chief Executive Officer, Raymond Betler’s corporate merger bonus package. 

Upon completion of the merger with GE transportation, a $16 million payment will be made to its CEO, Raymond Betler, and over $43 million in compensation to 19 other executives.

For the purposes of the analysis, Parker Philips examined a potential dip below currently contracted wages at 30%, 40%, and 50% for new hires/rehires. An analysis of the 466 call backs currently being negotiated, show that proposed wage reductions of 40% would result in a loss in direct and induced wages of $17.1 million, 82 more local jobs, and a ripple effect of $11 million in economic loss to the economy. 

“If Wabtec has enough money to reward over $120 million to executives at its company and General Electric, it damn well has enough money to honor the existing union contract with workers in Erie, Pennsylvania,” said United States Senator, Bernie Sanders. “What is happening in Erie is the continuation of corporate greed pure and simple. Our job is to end Wabtec’s greed and make sure the company treats its workers with respect and dignity.”

“This analysis shows that one person’s treasure is entire region’s tragedy,” said Scott Slawson, President U.E. Local 506. “Unless Mr. Betler plans to spend his entire bonus package in Erie County, these proposed wage cuts would be a major hit to our local economy—particularly small businesses fueled in part by the hard-earned wages of Erie’s extraordinary skilled labor force.  This report further fuels our resolve to stand up for our local economy and working families across the region”

“Our analysis shows that the wage cuts under discussion are relatively small compared to the total economic output of Wabtec,” said Nichole Parker, Principal Partner, Parker Philips. “An analysis of the wage reductions clearly demonstrates that UE 506 workers and the local businesses that they support will bear the brunt of any wage cutbacks.”

Sectors impacted include the service and retail sector, healthcare, wholesale trade, and transportation. While the majority of job losses occur in the railroad manufacturing sector, the loss of wages and spending power of jobs transferred will ripple throughout the entire Pennsylvania economy. 

The full report can be downloaded here or viewed at www.parkerphilips.com.

Upon closing on Monday, Wabtec executive vested in several different stock-based compensation products, including options, restricted stock, restricted stock units, and performance units.  The former two are essentially shares which are now vested, whereas the latter two will be settled in cash "as promptly as possible,” according to merger documents. 

The chart below was compiled by United Electrical Radio & Machine Workers of America and calculates the awards presuming Wabtec's stock trading at $97.07.

----MORE----

Name	Aggregate Value of Unvested Wabtec:				Total Value
	Options	Restricted Stock	Restricted Stock Units	Performance Units
Executive Officers
Raymond T. Betler	$748,145	$4,130,329		$11,260,120	$16,138,594
Patrick D. Dugan	$262,231	$2,693,693		$4,076,940	$7,032,864
Stéphane Rambaud-Measson			$3,824,558	$5,241,780	$9,066,338
David L. DeNinno	$216,318	$2,892,686		$3,300,380	$6,409,384
Scott E. Wahlstrom	$122,825	$1,226,965		$1,863,744	$3,213,534
Albert J. Neupaver	$443,245	$3,793,010		$9,318,720	$13,554,975
5 Other Executive Officers	$149,682	$1,021,468		$2,300,559	$3,471,709
Non-Executive Directors
Philippe Alfroid		$157,253			$157,253
Robert J. Brooks		$157,253			$157,253
Erwan Faiveley		$157,253			$157,253
Emilio A. Fernandez		$157,253			$157,253
Lee B. Foster, II		$157,253			$157,253
Linda S. Harty		$157,253			$157,253
Brian P. Hehir		$157,253			$157,253
Michael W.D. Howell		$157,253			$157,253
William E. Kassling		$157,253			$157,253
TOTAL	$1,942,446	$17,173,428	$3,824,558	$37,362,243	$60,302,675

#####

Download the Economic Impact Study here

RUMOR PATROL

There were erroneous news reports that contract negotiations would begin today.  If interim agreement were reached, we would have begun contract negotiations today.  That did not happen, and there are no negotiations scheduled at this time. 

BROTHERS & SISTERS,

Please remain disciplined and respectful on the picket line. Keep supporting your fellow workers, keep checking in for communications updates, and keep talking to your families.  We encourage you to bring your friends and families to the picket line.

Countless families, retirees, and community members are dropping food, coffee, hand warmers, and more.  Thank a neighbor tonight for supporting us.

UE supports businesses that support union families.  Here are just a few who dropped off food today. If you know of more, please let your Picket Captain know:

• Irish Cousins
• Tim Hortons
• Intergalasstic Art  
• Little Ceaser Pizza
• The Bean 
• Jack Frost Donuts    
• Erie Fire Department
• LP Fire Department
• H&H Shingle Savers
• Presque Isle Wineries 
• Lords Company Employees
• The Red Foxx
• All in Your Home HealthCare
• Zach Langer, Pfeffer Insurance
• Andy Pius Tree & Stump
• Junk Luggers
• Local Girl Scouts 
• PA United, Erie County
• Bob Evans
• Yum Yum’s Pizza
• Firehouse Subs 
• Larson Products
• The Bean in North East 
• Eric Walter Tree & Stump Removal   
• Pius Tree Service

U.S. Senator and presidential candidate Bernie Sanders released a video yesterday supporting our strike, stating “The fight that they are fighting in Erie, Pennsylvania is a fight that reflects the needs of millions of workers throughout this country.” Sanders wishes UE members “the best of luck in their struggle” and urges Wabtec to come back to the table and “treat their workers with respect and dignity.”

Local author Cyndie “CJ” Zahner published "the first in a series of blogs about the Erie, Pennsylvania wage dispute" yesterday:

If you are a blue-collar manufacturing worker in Erie, you should be concerned about the Wabtec/GE strike. The outcome of this labor dispute may eventually affect you.

Here’s how GE labor relations affected Erie in the past:

My Husband as an Example

Jeff worked as a journeyman toolmaker in Erie at a livable wage for years. When the owners of manufacturing companies in town banded together to control wages and, in some cases, alleviate overtime costs, Jeff’s pay raises and overtime stopped. We had three children in college at the time, so Jeff applied to and accepted a job at GE as a second-shift, press-brake operator in the hope overtime would be available to help pay our mounting college costs.

That year, GE hired hundreds of Erie workers. Smaller Erie manufacturers lost much of their skilled labor to them. In an attempt to keep some employees, those Erie manufacturing companies had to step up their pay increases and benefits. In doing so, they kept some employees from going to GE.

Fast forward a few years. GE is no longer hiring. In fact, they have laid some of those workers off.

Now those same manufacturers have the ability to fall back to their nickel-and-diming ways. So, some did. No need to take the scaling back to prior ways personal. This is Basic Supply and Demand 101.

Read the whole blog post on cyndiezahner.com

Brothers and Sisters, the solidarity among our UE family is unmatched. Your resolve to stand united in support of family sustaining jobs is honorable and brave—we salute you. Keep supporting your fellow workers, keep checking in for communications updates, and keep talking to your families. 

HERE’S WHAT YOU NEED TO DO

• FILE: Please file for unemployment today. This is a lockout.
  • LOG ON: www.uc.pa.gov
  • Click File an Initial Claim
  • Follow step-by-step filing instructions
  • REASON FOR SEPARATION: Strike/Lockout

• SIGN UP: If you haven’t signed up for a picket shift, call your chief steward and sign up for a picket shift now.

• COMMUNICATE:  Check in with your Chief Steward, Picket Line Captain or your Steward. Check the website, or Facebook for updates. If you would to receive updates via email please got to www.uelocal506.com and CLICK the MEMBER SIGN UP button. 

• ASK FOR HELP: As an employee of Wabtec, your benefits include access to the Employees Assistance Program (EAP). You can call EAP at any time for any reason at 877-234-5151. It is a completely confidential resource. Feel overwhelmed?  Call 2-1-1 and somebody will be there to help you, whatever you need.

HERE’S WHAT YOU NEED TO KNOW

1. We are fighting to maintain current wages and working conditions in the plant while we negotiate a new contract. A contract that GE considered acceptable and profitable.  It’s demoralizing and unnecessary.

2. Wabtec assertion that our wages are too high “for that region” is an insult to every person living in Erie County. This is not just about our jobs—this is about the future of our local economy, our community and family sustaining jobs across America.

3. Wabtec is not poor—and the Lawrence Park plant under the current collective bargaining agreement has been highly profitable every quarter for years. Wabtec is a profitable company that is expected to bring in nearly $8 billion this year – doubling its revenue as a result of the merger. They had enough money to provide over $120 million in payments to executives at Wabtec and GE, including a $16 million handout to Wabtec’s CEO.

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