The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
COLLECTIVE BARGAINING PROVISIONS
Health, Insurance, and Pensions
Bulletin No. 908-17
UNITED STATES DEPARTM ENT OF LABOR
Maurice J. Tobin,
Secretary
BUREAU OF LABOR STA T IST IC S
Ewan Clague, Commissioner
For sale by the Superintendent o f Documents, U. S. Government Printing Office
Washington 25, D . C. - Price 55 cents
Letter of Transmittal
U nited States D epartment of L abor,
B ureau of L abor Statistics ,
,
Washington, D. (7., December 30 1949.
The Secretary of L abor :
I have the honor to transmit herewith the seventeenth bulletin in the series
on collective bargaining provisions. The bulletin consists of two chapters:
(1) Health, Welfare, and Insurance Plans, and (2) Pension Plans, and is based
on an examination o f collective bargaining agreements and related materials
on file in the Bureau. Both chapters were prepared in the Bureau's Division of
Industrial Relations by Thurza J. Brannon and Evan Keith Rowe, under the
direction of Abraham Weiss.
E w a n Clague , Commissioner.
H on . M aurice J. T obin ,
Secretary of Labor.
iii
Preface
A s early as 1902 the Bureau of Labor Statistics, then the Bureau
of Labor in the Department of the Interior, recognized the growing
importance of collective bargaining, and published verbatim the
bituminous-coal mining agreement o f 1902 between the Associations
of Coal Mine Operators of Pennsylvania, Ohio, Indiana, and Illinois
and the respective districts of the United Mine W orkers o f America.
Since 1912 the Bureau has made a systematic effort to collect agree
ments between labor and management in the leading industries and
has from time to time published some of those agreements in fu ll or
in summary form in the Monthly Labor Review.
The first bulletin entirely devoted to collective bargaining agree
ments was published in 1925 under the title “Trade Agreements in
1923 and 1924.” Similar annual bulletins were published in 1926,
1927, and 1928. These bulletins analyzed only outstanding agree
ments affecting certain industries and certain skilled crafts in which
collective bargaining has followed a more or less established pattern.
No bulletins in this field were published by the Bureau between
1928 and 1942— a period during which collective bargaining first lost
ground in the depression and then made rapid strides following the
enactment of the National Labor Relations A ct in 1935. The growth
in trade-union membership from fewer than 4,000,000 workers in 1935
to more than 10,000,000 in 1942 not only resulted in a large increase
in the number o f collective agreements covering industries hitherto
not included under collective bargaining, but also extended the scope
and area of bargaining in individual industries. In recognition of
this development, the Bureau’s 1942 report on union agreements
(Bulletin No. 686) dealt with provisions and clauses on particular
labor-management problems rather than with the agreements of each
union or industry separately.
The substance and character of collective bargaining agreements
change continuously, and many of the clauses and provisions covered
in Bulletin No. 686 underwent significant changes during the war
emergency, as a result not only of the normal processes of collective
bargaining but of the decisions of the National W a r Labor Board.
New problems meant new clauses and new provisions. The Board also
gave added impetus to certain forms of union security, and to certain
v
VI
PREFACE
practices, now deeply imbedded in the entire field of labor-management
relations.
The liquidation of the Board, and the renewal o f emphasis on free
collective bargaining after YJ-day, led to a tremendous increase in the
demand for information on specific current provisions in agreements.
Urgent requests came from employers and unions, from the United
States Conciliation Service, and from mediators and arbitrators
engaged in settling or preventing labor-management disputes. I t was
largely in response to these requests that the Bureau of Labor Statis
tics undertook to revise and bring up to date the material on union
agreements.
In this revision two significant departures have been m ade: (1)
Accumulation of data has made possible the use of a larger sample
than was possible heretofore. (2) The information will be presented
in a series of small bulletins, each stressing a major area or significant
problem of collective bargaining. This will permit the material for
each major problem to be published as rapidly as finished without
waiting until all of the subjects of collective bargaining are analyzed.
It will have the advantage o f greater flexibility in handling specific
requests for material from employers, unions, and the public. Some
clauses are more or less stable and undergo relatively minor changes
even over a considerable period of time and therefore need only occa
sional revision, whereas others undergo rather rapid change. A lso,
as new issues develop it will be possible to add new bulletins to the
series without revising those already published.
The clauses used are designed to facilitate, but not to condition, the
bargaining process. No special attempt has been made to determine
the prevailing industry practice or the most frequently used provi
sions. The clauses are presented, not as models, but as a source of
reference for those who participate in collective bargaining negotia
tions, by making available to them a wide variety of provisions on the
specific subjects under consideration. A n index of all the contract
clauses quoted, with a brief description of each clause, is appended to
each report.
This report, dealing with health, welfare, insurance, and pension
plans, is the seventeenth in this Collective Bargaining Provisions
series. The bulletins already published are as follow s:
No. 908
No. 908-2
No. 908-3
No. 908-4
Union Security Provisions.
Vacations ; Holidays and W eek-End W ork.
Incentive W age Provisions; Time Studies and Stand
ards o f Production.
Apprentices and Learners.
PREFACE
No. 908-5
No. 908-6
No. 908-7
No. 908-8
No. 908-9
No. 908-10
No. 908-11
No. 908-12
No.
No.
No.
No.
908-13
908-14
908-15
908-16
VII
Discharge, Discipline and Q uits; Dismissal Pay
Provisions.
Leave of Absence; M ilitary Service Leave.
Promotion, Transfer, and Assignm ent; Lay-O ff,
W ork-Sharing, and Reemployment.
General W age Provisions.
W age Adjustment Plans.
Union-Management Cooperation, Plant Efficiency,
and Technological Change.
Seniority.
Union and Management Functions, Rights, and Re
sponsibilities.
Strikes and Lock-Outs; Contract Enforcement.
Safety, Health, and Sanitation.
Guaranteed Employment and W age Plans.
Grievance and Arbitration Provisions.
Contents
C h a p t e r 1 .— H
ealth
, W
elfare, and
I nsurance P lans
Page
Introduction-------------------------------------------------------Relation of benefit plan to the agreement: Clauses 1-37_________________
Negotiation of plan: Clauses 38-44________________________________
Effective date of plan: Clauses 45-49---------------------------------------------Type and amount of benefits___________________________________________
Specimen benefit plans: Clauses 50-58_____________________________
Life insurance and accidental death or dismemberment benefits:
Clauses 59-74_____________________________________
Weekly sickness and accident benefits: Clauses 75-91_______________
Hospitalization------------------------------------------------------------------------------Hospitalization service: Clauses 92-95_________________________
Reimbursement for hospital expense:Clauses 96-105____________
Surgical and medical fees or service: Clauses 106-112__________ ____
Maternity benefits: Clauses 113-122_______________________________
Eligibility for participation:
Employees------------------------------Compulsory versus optional participation: Clauses 123-127____
Specific eligibility requirements— contributory plans: Clauses
128-131_____________________________________________________
Specific eligibility requirements— noncontributory plans: Clauses
132-145_______________ - ___________________ - _______________
Dependents________________________________________________________
Employees' and dependents' benefits provided at employer's ex
pense: Clauses 146-150_____________________________________
Employees' benefits financed solely by employer; employee con
tributes for his dependents: Clauses 151-154_________________
Employee's benefits jointly financed; dependents' benefits
financed solely by employer: Clause 155_____________________
Both employees' and dependents' benefits jointly financed: Clauses
156-167_____________________________________________________
Financing the plan_____________________________________________________
Noncontributory plans_____________________________________________
Based on percent of pay roll: Clauses 168-179____________
Flat amount: Clauses 180-185_________________________________
Other arrangements: Clauses 186-198__________________________
Contributory plans________________________________________________
Costs shared equally: Clauses 199-201_________________________
Employer contribution greater than employees': Clauses 202-204.
Fixed employee contribution; employer pays difference:
Clause 205________________________________________
Fixed employer contribution; employee pays difference:
Clauses 206-207___________
IX
1
4
12
13
14
14
20
24
28
29
30
32
34
37
38
39
39
42
43
44
44
45
47
47
48
50
51
54
55
55
56
56
X
CONTENTS
Financing the plan— Continued
Insurance dividends and rate rebates_______________________________
Noncontributory plans: Clauses 208-211_______________________
Contributory plans: Clauses 212-216__________________________
Underwriting the plan and selecting the insurer: Clauses 217-228-Disposition of funds on termination of plan: Clauses 229-236_______
Other financing arrangements: Clauses 237-243_____________________
Administration_________________________________________________________
Noncontributory individual company plans: Clauses 244-248_______
Contributory individual company plans: Clauses 249-252___________
Noncontributory association or industry plans: Clauses 253-267____
Benefit claim and payment procedure: Clauses 266-272_____________
Recourse to grievance procedure and/or arbitration: Clauses 273-280Employer and union safeguards:
Employer safeguards_______________________________________________
Protection against increased costs: Clauses 281-287____________
No responsibility for default by insurance carrier: Clauses 288290_________________________________________________________
Other safeguards: Clauses 291-292_____________________________
Protection of the fund: Clauses 293-304____________________________
Inspection of records and other enforcement measures_______________
Periodic reports, audits, and access to records: Clauses 305-317General enforcement provisions: Clauses 318-325______________
Adjustments to health or social security legislation: Clauses 326-340____
The individual worker’s equities under a benefit plan____________________
Temporary lay-off or leave of absence: Clauses 341-364____________
Termination of employment or of union membership: Clauses 365374______________________________________________________________
Retirement for age or disability: Clauses 375-383__________________
Other coverage provisions: Clauses 384-387________________________
Page
56
57
57
58
61
62
64
66
67
68
72
73
75
75
77
77
78
80
81
83
85
89
90
95
98
100
C h a p t e r 2 .— P e n s i o n P l a n s
Introduction___________________________________________________________
Specimen benefit plans: Clauses 1 -9 ______________________________________
Contractual obligations: Clauses 10-30----------------------------------------Eligibility rules for membership in plan: Clauses 31-38__________________
Computation of creditable service: Clauses 39-45___________________
Qualifications for benefits:
Retirement: Clauses 46-51-------------------------------------------------------------Permanent disability: Clauses 52-60--------------------------------------------------Death benefits: Clauses 61-65-----------------------------------------------------------Retirement age: Clauses 66-81--------------------------------------------------------------Employees’ benefit rights on separation from service: Clauses 82-89-------Amount of pension----------------------------------------------------------------------------------Uniform amounts: Clauses 90-95------------------------------------------------------Graduated benefits: Clauses 96-103------------------------------------------------Deductions of State or Federal benefits from pension: Clauses 104109_____________________________________________________________
Conditions governing payment, continuation, or suspension of pension
payments: Clauses 110-114------------------------------------------------------------
102
103
112
117
118
120
124
127
130
133
135
136
138
142
143
CONTENTS
XI
Page
Financing the plan_____________________________________________________
Noncontributory plans: Clauses 115-116___________________________
Contributory plans: Clauses 117-120_______________________________
Administration: Clauses 121-131_______________________________________
Disposition of funds on termination of plan: Clauses 132-136______
Effective date of plan: Clauses 137-140____________________________
Appendix.— Texts of Selected Health, Welfare, and Pension Plans_______
Index__________________________________________________________________
144
144
145
146
149
151
154
223
B ulletin JJo. 908-17 o f the
U n ited States B ureau o f Labor Statistics
Collective Bargaining Provisions
Health, Insurance, and Pensions
C h a p t e r 1.— H e a l t h , W
elfa r e , and
I nsurance P lan s
Introduction
Establishment of employee-benefit plans through collective bar
gaining is a comparatively new phase in industrial relations, but
unions and employers individually have for many years operated such
programs. Many of the older unions started as fraternal organiza
tions, with plans designed to give some protection to their members
against loss o f income during sickness, unemployment, and old age,
and to provide death benefits for their members’ families. Em ploy
ers also have inaugurated pension plans and group life and health
insurance program s; a number provided in-plant medical care. Union
plans, however, often ran into financial difficulties, and labor organi
zations never wholeheartedly endorsed those sponsored by employers
because they had no voice in the administration and no contractual
protection against discontinuance of protection. Many of these pro
grams are still in operation, but some have been superseded by plans
effected through collective bargaining.
A t the outbreak of W orld W ar I I , relatively few union agreements
made provision for health and welfare benefits and old-age pensions.
During wartime, the Government’s wage stabilization program lim
ited the amount of wage increases which employers could grant, but
permitted the adoption of reasonable employee insurance and pension
benefits. Early in 1945, the National W ar Labor Board held that
employers should not alter or discontinue group insurance plans dur
ing the life of their union agreements. In some cases, the Board
ordered employers to include existing benefit plans within the agree
ment. These actions stimulated the growth of plans and also brought
a number of existing employer plans within the scope of union
agreements. Favorable income tax regulations applicable to em
ployers who set up approved plans also contributed to the growth of
health and welfare plans.
1
2
COLLECTIVE BARGAINING PROVISIONS
Union interest in collectively bargained employee benefits has been
spurred by the absence of health and disability benefit provisions and
by the inadequacy of retirement and survivors’ benefits currently
paid under the Social Security A ct. Through negotiations, labor
seeks to supplement benefits under the Social Security A ct, to secure
additional types of benefits, and to make provision for special bene
fits to meet conditions that exist within the establishment, firm, or
industry covered by the particular contract.
Five States (California, New Jersey, New York, Rhode Island, and
W ashington1) have enacted disability insurance programs providing
weekly cash payments to workers for temporary disability caused by
nonoccupational sickness and accident. These programs are admin
istered in connection with the respective State unemployment insur
ance laws, except in New York where the State Workmen’s Compensa
tion Board is the administrative agent. Coverage is largely identical
in each State with that of the unemployment insurance act.
In California, Rhode Island, and Washington, employee contribu
tions o f 1 percent of covered wages wholly finance costs. The New
Jersey plan requires employee contributions of 0.75 percent of covered
wages and employer contributions of 0.25 percent (to be modified by
experience rating after July 1 ,1 9 5 1 ). In New York, employees con
tribute 0.5 percent of wages received, but not in excess of 30 cents per
week; the employers bear the remaining cost. Except in New York,
the States define “covered wages” to exclude amounts exceeding $3,000
a year.
W eekly benefits in 4 States are geared to the respective State unem
ployment insurance schedules: $6.75 to $18 in Rhode Islan d; $9 to
$22 in New Jersey; and $10 to $25 in California, Rhode Island, and
W ashington. The New York maximum is the same as for unemploy
ment insurance, $26, but the minimum is either $10 or the employee’s
average weekly wage during his last 8 weeks of covered employment,
whichever is less. The maximum annual duration o f benefits is 13
weeks in New York and 26 in the other 4 States.
Except in Rhode Island, employers may “ elect out” or “ contract
out” of the State plan by establishing or participating in an approved
private plan, either insured or self-insured. For approval under the
Washington law, a private plan must provide benefits which are at
least as great as those under the State plan. In California, an
approved private plan must provide total benefits equal in all respects
to those under the State plan and greater in at least one. Approval
in New Jersey depends on the inclusion of weekly benefits at least1
1 Operation of the Washington act, however, is deferred pending a referendum to be held
*at the November 1950 general election.
HEALTH, INSURANCE, AND PENSIONS
3
equal in duration and amount to those under the State plan, and
eligibility requirements which are not more restrictive. In New
York, the benefits o f an approved plan must be at least as favorable
as those of the State plan. In New Jersey and New York, a private
plan adopted prior to the effective date of the State plan may continue
without approval until the date on which the employer has the right
to m odify or discontinue the plan. New York permits extension of
an existing private plan beyond its termination date by agreement or
collective bargaining between the employer and employees, even
though its benefits remain inferior to those of the State plan.
Cash sickness benefits to railroad workers, as well as cash maternity
benefits to women railroad workers, are provided under the Railroad
Unemployment Insurance A ct, as amended. These benefits are
financed entirely by employer contributions to the Railroad Retire
ment Board. The sickness benefits are the same in amount and
duration as the unemployment benefits. They range from $1.75 to
$5 for each day of sickness over 7 in the first 14-day registration period
and for each day over 4 in subsequent registration periods up to a
maximum of 130 days in one benefit year. The same daily rate is
payable for maternity benefits, for a maximum period of 116 days
beginning 57 days before the date of childbirth. The first 14 days
of the maternity period and the first 14 days after birth, however, are
payable at one and a half times the daily rate.
More than 3 million workers were covered by health, welfare,
and/or retirement benefit plans under collective bargaining agree
ments in July 1948. Benefits provided were of one or more of the
following types: W eekly cash payments for loss of time on account
of accident and sickness; medical care in the form of actual services
or reimbursement of part or all of the expenses in the event of hos
pitalization, surgical, maternity, or other medical care; death bene
fit or life insurance, accidental death and dismemberment; and re
tirement annuities or pensions. These workers were covered by plans
initiated as a result o f collective bargaining or plans originally es
tablished by employers and later written into agreements. Since
July 1948, many more plans have been set up by agreement between
unions and employers. Many plans originally sponsored by em
ployers have been brought within the scope o f collective bargaining
agreements, and many employers and unions have agreed to study
the feasibility of establishing benefit program s; to initiate and install
program s; or to bring existing employer-sponsored plans within the
scope o f agreements.
Illustrative clauses throughout the chapter were excerpted from two
sources: collective bargaining agreements and descriptive booklets
4
COLLECTIVE BARGAINING PROVISIONS
outlining collectively bargained plans. The latter are indicated by
a footnote. The development of a subject-by-subject treatment
necessarily removed clauses and portions of clauses from context.
A s a result, the complete plan is rarely, if ever, presented to the
reader. Although complete details of a plan are seldom incorporated
in the collective bargaining agreement or its supplement, a number
of contracts do contain fairly comprehensive outlines of the program.
Recent agreements negotiated in the steel and auto industries provide
examples of this type of agreement as do others such as coal, electrical
contracting, etc., which have been in effect for some time. Set forth
in the appendix, beginning on page 154, are several significant pro
grams as contained in the agreement or descriptive booklet. In the
case of the bituminous-coal program, additional details are provided
by reprinting significant resolutions adopted by the trustees of the
fund.
Relation o f Benefit Plan to the Agreement
Union-management negotiations over employee-benefit plans as
evidenced in collective bargaining agreements, tend to fall into three
basic categories:
(1) Plans created by collective bargaining.— In this group are in
cluded those plans, either on a plant, company, or industry basis, which
owe their origin and inception to union demands. Union-created
plans such as those of the International Ladies’ Garment Workers
Union and The Amalgamated Clothing W orkers are. often found in
large metropolitan areas and are the result of area-wide or industry
wide bargaining. They are commonly noncontributory (i. e., financed
solely by the em ployer); union-administered or jointly administered
(in the latter case, often with provision for impartial representation
on the policy or administrative b oard ); and employers’ contributions
are paid into a trust fund.
O ften, such agreements merely record the joint decision to establish
a benefit program, stipulate the employer’s contribution, provide for
the creation of a fund or otherwise indicate the method of providing
or insuring the benefits, and provide for details of benefits, admini
stration, and the like to be worked out in a separate document by the
appropriate administrative official or agency. Other newly created
plans, on the other hand, are recorded in great detail in the agreement.
(2) Employer-sponsored plans continued or brought within the
agreement.— Although such plans are more numerous than plans cre
ated by collective bargaining agreements, the latter involve large
numbers of employees.
HEALTH, INSURANCE, AND PENSIONS
5
Some collective bargaining agreements state that the benefit plan
in existence at the time the contract was negotiated shall be continued
without change for the duration of the contract. Usually these merely
continue plans already agreed upon. Many of these, however, apply
to plans originally established unilaterally (by the employer) ; the
intent of such a general statement is to assure employees that such
benefits will be continued at the same level during the contract term
or that benefits w ill not be reduced without the mutual consent of
company and union. The latter proviso is sometimes expressly
stated.
It is not always possible to determine solely from an examination of
the agreement whether the plan to be continued represents a plan orig
inally employer-sponsored. Increasingly, however, the agreements
are including more details of plans, whatever their source or origin.
(3)
Employer-sponsored plans remain outside the scope of col
lective bargaining.— Although in some contracts an unqualified pledge
or commitment is made that the employer will continue the plan, at
least for the life of the collective bargaining agreement, others contain
only a conditional pledge, i. e., the employer may change or withdraw
the benefits under certain circumstances. A few permit cancellation
by the employer at his sole discretion, usually upon due notice to the
union and provided such action is not taken for the purpose o f union
discrimination.
In establishing a benefit program for the first time, provision is some
times made for joint development, often with an express proviso for
the joint study of existing benefit plans. The date of initiating such
a program, after joint study and negotiation, is not generally stipu
lated in contracts. Some contributory plans require participation by
a minimum number or proportion o f eligible employees before a plan
may become effective.
Surveys or continuing studies are frequently prescribed for the
purpose of improving the plans. These studies may be conducted
jointly by representatives of the employer and the union or by a
special committee.
Often employee benefit plans are established under separate agree
ments and are incorporated by reference into collective bargaining
agreements. I f a plan is an integral part of a collective bargaining
agreement, without special duration and renewal clauses applying
solely to it, the general duration and renewal clause of the agreement
undoubtedly applies. However, some agreements contain special
termination or modification clauses whereby benefit plans may be
terminated prior to the expiration date of the agreement proper, by
875403°— 50----- 2
6
COLLECTIVE BARGAINING PROVISIONS
one or both parties, or by joint action. Certain agreements stipulate
that benefit provisions shall continue beyond the expiration of the
general agreements, thus assuring coverage during the interim periods
between contract negotiations (if the contracts are ultimately renewed
or renegotiated), or for periods subsequent to the termination of the
collective bargaining agreements.
1- Employer To Maintain Plan for Term of Agreement and Any Extension or
Renewal
The employer agrees that it will continue in effect a plan of group insurance
which it shall maintain at its sole expense during the term o f this agreement
and any extension and renewal thereof, providing all of the following benefits
for all of the employees covered by this agreement.
2. Benefit Plan Made Part of Agreement, Subject to Existing Limitations
The presently existing employee-benefit plans; namely (1) accident and sick
benefit plan, (2) permanent total disability plan, (3) group life insurance and
pension plan, and (4) hospital and surgical benefit plan, subject to their presently
existing limitations, are incorporated in and made a part of the contract.
3. Employer To Continue Existing Plan, Part Contributory, Part Noncontributory
The present group life insurance, group sick insurance, group hospitalization
insurance, and group accidental death insurance, now in effect shall be
continued.
4. Employer To Continue Noncontributory Plan for Term of Agreement
The company agrees to continue present “Life” and “Accident and Health” in
surance policies for hourly rate employees without cost to employees for the term
of this agreement.
5. Plan Continued Subject to Previously Existing Rules. Employer Modifica
tions Allowed, Subject to Negotiations if Reduction in Benefits Involved
All authorized privileges such as retirement benefits, * * * company’s
self-insurer plan for accidental injuries, death benefits, ♦ * * heretofore
enjoyed by all classes of personnel of company and not specifically covered else
where in this agreement shall continue, subject to such rules and regulations as
existed prior to the signing of this agreement and to such modification thereof as
may hereafter be adopted generally by company. Such modifications, however,
shall be subject to negotiation if they involve a reduction in such authorized
privileges.
6. Employer Pledge to Continue Plan for Duration o f Agreement Not Binding
Thereafter
The company has a group life insurance contract with t h e --------- Insurance
Company. This contract insures the life of each employee in an amount of onethousand (1,000) dollars. All premiums are paid by the company without
contribution from the employees. For the term of this agreement, but without
commitment or liability thereafter, the company agrees not to discontinue or
alter its present noncontributory group life insurance plan.
7. Plan Remains in Effect Until Termination of Agreement or Until Terminated
in Writing by Union and Association
The provisions o f this supplemental agreement shall remain in full force and
effect for the full term of the collective bargaining agreement but shall terminate
HEALTH, INSURANCE, AND PENSIONS
7
and come to an end with the collective bargaining agreement, or prior thereto
by an instrument in writing executed by the board of directors of the --------Association of New York City, Inc., and the union.
8. Plan and Agreement To Run Concurrently Unless Underwriter Changes Terms
The [medical aid] contract so selected shall be continued throughout the life
of this contract unless the terms thereof are changed by the party thereto agreeing
to furnish the medical services, and in the event of such change such contract
shall be continued, nevertheless, until a new contract be agreed upon between
the employer and the union in accordance with the foregoing provisions. It is
understood that the said medical aid contract can be changed at any time by
mutual agreement o f the employer and the union.
N ote.—Arbitration over the details of the plan is provided.
9. Benefit Fund to Survive Expiration of Agreement
At the expiration of the term of this agreement, the fund shall continue in
order to effectuate the purposes for which it was established.
10. Plan to Continue for 6 Months A fter Expiration of Agreement
Notwithstanding the expiration of this agreement, the trust created herein
shall continue to operate and effectuate the purposes herein contained until six
(6) months after the expiration of this agreement or the renewal thereof.
11. Application of Employer’s Existing Benefit Plans not Affected by Contract
The company has now in effect the following welfare plans copies of which
are attached to the duplicate originals of this agreement: Vacation plan; pension
plan; disability wage plan; voluntary compensation—occupational disability;
group life insurance; group accident and sickness insurance. The execution of
this agreement shall have no effect whatsoever upon the application of the
company’s welfare plans.
12. Association Agreement: Existing Plans May Be Continued With Cost Credited
to Maximum Employer Contribution Specified
Effective January 1,1949, the employer agrees to put into effect insurance pro
viding death, health, accident, and hospitalization benefits for its steady em
ployees, at a cost not to exceed 2 percent of its cash pay roll under the contract.
[Employers] now having insurance plans may continue them in effect with the
cost thereof to be credited on the maximum 2 percent expense to the [employers].
13. Existing Plan Continued and Broadened to Include Retirement Benefits
The health fund which was heretofore established by the parties hereto in
their collective agreement dated March 22, 1944, as of March 6, 1944, to provide
all members of the union in all crafts covered by the collective agreement with
health benefits and contributions towards vacation benefits is hereby continued in
full force and effect with the following modifications:
The purpose of the fund is hereby broadened to include retirement benefits
for aged workers.
The fund shall hereafter be known under the name o f the health and welfare
fund.
14. No Reduction or Withdrawal of Benefits During L ife o f Agreement
In addition to the wages, incentives and bonus plan provided above, the com
pany will not reduce or withdraw, during the life of this contract, the security
program and other benefits in effect on the date hereof, consisting of life insur
ance, health and accident insurance, hospitalization for employees and their
8
COLLECTIVE BARGAINING PROVISIONS
families, and surgical benefits for all employees fully paid for by the company
after 1 year’s employment.
15. Employer May Change Benefit Plan b\ut not Reduce Benefits
The company agrees to continue the --------- benefit plan covering life insur
ance, sickness benefits, hospitalization, surgical fees, and annuity, effective
[date]. It is agreed that the company has the right to make such changes in
the benefit plan that will not result in less benefits to the employees.
16. Employer Contributes to Union Fund; Union to Maintain Program for Dura
tion of Agreement
The union agrees that the program of social security benefits hereinabove
described shall be maintained in full force and effect for the entire period of
time during which this agreement is in effect and the terms hereof fully complied
with in all respects by the employer.
17. Prior Discussion With Union Before Major Changes Made in Plan
The company agrees to the continuance of a group insurance plan and will
discuss any major changes in the plan with the union before they become
effective.
18. No Change Reducing Benefits Without Union Consent. Arbitration in Case
of Dispute Limited to Question of Bad Faith or Discrimination
During the term o f this agreement, no change may be made without the con
sent of the union in the existing “plan for employees’ pensions, disability benefits,
and death benefits” which would reduce or diminish the benefits or privileges
provided thereunder. Any claim that such benefits or privileges have been dimin
ished or reduced may be presented as a grievance and if not resolved by the
parties under their grievance machinery may be submitted to arbitration pur
suant to the provisions of Article 17, but in any such case any decision or action
of the company shall be controlling unless shown to have been discriminatory
or in bad faith and only the question of bad faith or discrimination shall be
subject to the grievance procedure or arbitration.
19. No Modification or Cancellation of Existing Plan Except by Mutual
Agreement
The company agrees that during the life of this agreement it will not abandon
or modify its existing benefit and pension plan with respect to the employees
in the bargaining unit except pursuant to mutual agreement.
20. Continuance of Plans Vested Exclusively in Company*s Board of Directors
The company states that it is its intention to continue other employee benefits
such as the life insurance plan and the retirement and separation allowance
plan under the rules and regulations therefor now in effect or as they may here
after be modified provided, however, that any such continuance of such benefits
shall at all times remain and be vested in the board of directors of the company
in its uncontrolled discretion.
21. Continuation of Insurance Plan at Employees Discretion.
cussed With Union SO Days in Advance
Changes Dis
The continuation of the employer’s present policy and practice relative to
insurance, as described in [company publication], is within the discretion of
the employer. Any contemplated change will be discussed with the union as
nearly as possible 60 days in advance.
HEALTH, INSURANCE, AND PENSIONS
9
22. Employer May Discontinue Plan Upon Due Notice I f Its Financial Condition
Changes
It is further agreed that, while this insurance plan is intended to be a perma
nent part of the company’s program for its employees, should changes in the
financial condition of the company render it necessary, this insurance may be
discontinued upon due notice to the employees.
23. Benefits To Remain in Force So Long as They Are Maintained for Other
Employees, Subject to Employer’s Right To Modify or Cancel at Any Time.
Union Given 20 Days’ Advance Notice and Opportunity To Present Views
The [employer] agrees that during the term of this agreement the benefits of
the pension and group term life insurance plan contracts between the [employer]
and th e --------- insurance company shall be applicable to employees to the same
extent and during such period as these benefits are maintained for other em
ployees of the [employer] and affiliated companies. These contracts are subject
to amendment, modification or cancellation by th e --------- insurance company or
by the [employer] and nothing in this paragraph shall in any way limit the
rights of the [employer] to amend, modify or cancel such contracts at any time
or from time to time. The [employer] agrees, however, that before it cancels or
proposes any amendment or modification of these contracts which would sub
stantially lessen the benefits accruing to employees, the union will be given at
least 20 days’ prior notice of such proposed amendment, modification or can
cellation and the [employer] will afford representatives of the union an oppor
tunity to present to the [employer] their point of view with respect to such
proposal.
24. Employer To Give SO Days’ Notice Before Changing Plan
The company agrees to comply with the terms of its employees’ benefits plan
dated July 1, 1944, as same may be revised from time to time by the company,
and said plan is attached hereto as appendix A. Notwithstanding any contrary
language in said plan, so long as this agreement is in force.
*
*
*
*
*
*
*
The company will not terminate the said plan or so modify it as to reduce its
benefits to employees covered by this agreement without giving the union 30
days’ written notice o f the action contemplated. If within said 30 days the
union requests a meeting with the company to discuss such termination or
modification before it goes into effect, the company will arrange such a meeting
at the earliest convenient date and postpone its contemplated action until the
meeting has been held.
25. Employer May Modify or Withdraw Benefits Provided Action Not Discrimina
tory Against Union or Members
It is the intention o f the company to continue all existing benefits and practices
for the welfare of all employees insofar as is practicable, but it is understood
that the benefits are voluntary on the part of the company and may be changed
by the company in whole or in part, or completely withdrawn when in its judg
ment such action is indicated; provided that no benefits shall be changed in
whole or in part, or withdrawn by the company for the purpose of discriminating
against the union or its members.
26. Right To Modify or Discontinue Benefits Subject to (I ) Ban on Discrimina
tory Change and (2) Consultation With Union
It is the intention o f the company to continue all existing benefits and provi
sions for the welfare of employees insofar as is practicable, but the company
10
COLLECTIVE BARGAINING PROVISIONS
reserves the right to change, modify or completely withdraw such benefits when
in its judgment, such action becomes necessary; provided that no benefit shall
be changed in whole or in part for the purpose of discriminating against the
employees covered by this agreement and provided that whenever requested by
the union, the company agrees to meet with the union for the purpose o f dis
cussing such changes.
27. Listed Benefits Subject to Economic Conditions and Company Policy
The following benefits will be available to all eligible employees, subject to
economic conditions and general company policy with respect thereto:
( a ) Group insurance
( b) Group hospitalization
(c) Illness allowance and accident pay policies
(d ) Employes savings & profit sharing pension fund, in accordance with the
provisions and bylaws thereof.
28. Union Recognition of Noncontractual Nature of Existing Benefits not to
Prejudice its Right to Bargain Collectively on Future Benefit Plans
The plans for sickness and accident disability benefits, plan for employees in
military service, disability termination allowance, annuities and insurance, and
survivorship benefit plans are recognized by the union as noncontractual and as
being subject to modification, change or termination by the board of directors of
employer, and the employer shall assume the responsibility of determining by the
terms thereof the eligibility of employees to participate in such plans. A pub
lished copy of each of these plans and benefits will be delivered to the officers of
the union and the employer will, upon the making of any amendment, change,
modification or termination of all or any of these as is determined necessary
by the board of directors of the employer, give notice to the union in writing of
such amendment, modification, change or termination. This section shall in no
way prejudice the right of the union in collective bargaining in respect to future
employee participating benefit plans.
29. Employer to Make Study to Liberalize Sickness and Accident Benefits. Union
Informed of Changes Before Employees.
As soon as possible, announcement will be made to employees of revised and
extended employee benefits connected with the group life insurance and group
hospitalization insurance programs. Study is being undertaken with a view
toward providing more adequate group sickness and accident insurance.
Before further changes in th e --------- group insurance programs are announced
to the members of a bargaining unit the local union officers will be informed.
I f desired, an explanation of the changes will be made to the union committeemen.
Employee participation in these programs shall remain on a voluntary basis.
The determination of these programs is reserved to the company.
80. Contributory Plan: Union May Request Negotiations on Insurance on 60
Days9 Notice, Not More Than Once During Contract Year.
The company agrees that upon receiving 60 days’ notice from the union nego
tiations on insurance can be reopened but not more than once per contract year.
31. Joint Study to Improve Benefit Provisions and Administration of Plan
The company will make available to the employees the group insurance plan
outlined in the material submitted by the company with its memorandum dated
June 29,1948, directed to the [union] subcommittee on group insurance. Before
putting this plan in effect, however, the company will meet with and receive from
the [union] subcommittee on group insurance any proposals the latter may have
HEALTH, INSURANCE, AND PENSIONS
11
with respect to the shifting of benefits as between the weekly accident and sick
ness benefit and the medical benefit. Unless the company determines that such
proposals will increase its cost of the plan, it will modify the plan accordingly.
Unless changes in the plan proposed by the company have been agreed upon on
or before August 7, 1948, such plan will be deemed accepted by the union and
will be placed in effect as soon thereafter as is practicable.
The company will meet, at mutually agreeable times, with a group insurance
advisory committee of not more than five members appointed by the union to hear
any suggestions the union may have concerning the administration of the benefits
under the group insurance plan. The company will give careful and serious
consideration to any administrative suggestions presented to it by such com
mittee, and when it finds that such suggestions are meritorious and practicable,
will bring them to the attention of the insurance carrier with the recommendation
that they be placed in effect.
The company will appoint a committee to study thoroughly the matter o f life,
accident, medical, hospitalization, and sickness insurance. Such committee will
meet, at mutually agreeable times, with a social security committee of not more
than five members appointed by the union, and receive from it any studies, plans,
or analyses the union may present. The company committee will give the matters
submitted to it by the union committee full consideration and study.
32. Employer Contributions to Union Fund. Changes in Policy, Benefits, or
Additional Insurance To Be Jointly Determined
It is mutually agreed that the employer will pay $3 per month per employee
for the purchase and administration of a group, life, accident, health, and hospi
talization insurance for the sole benefit of the employees of the employer. The
$3 will be paid to and the fund administered by the union ([union] trust fund).
Any changes in the policy, benefits, or additional insurance coverage will be
mutually agreed upon by the employer and the union.
The employer further agrees to deduct from each employee’s pay each month,
upon authorization of such employee, such amounts for additional coverage under
this plan as desired by the employee.
33. Company to Furnish Union Copies o f Policies and Revisions
Company will provide representatives of the union with copies of written or
printed statements of its prevailing policies with respect to the foregoing benefits
together with revisions thereof as they may be made from time to time.
34. Booklet With Details of Insurance Program Distributed to Employees
A booklet setting forth the details of the entire insurance program shall be
placed in the hands of each employee and shall contain letters from the manage
ment and the union. The master policy and the individual policy shall contain
the names of both management and the union.
35. Details of Insurance Benefits Included in Policy
The union has contracted for the issuance o f blanket coverage insurance policy
or policies to provide for the payment of the foregoing benefits as therein pro
vided. The rights and duties of all parties including the union, the employer and
the employee-members shall be governed by the provisions of said blanket coverage
policy or policies which are incorporated in and made part of this provision.
36. Insurance Company to Issue Certificate to Each Covered Employee
The insurance company will issue to each insured employee an individual in
surance policy certificate describing the benefits of the plan.
12
COLLECTIVE BARGAINING PROVISIONS
37. Individual Insurance Certificate Must Bear Statement That Benefits There
under Are According to the Collective Bargaining Agreement
The insurance certificate to be furnished to employees shall state on its face
that the insurance benefits are pursuant to and in accordance with the agreement
between the [union] and the mill.
N egotiation of P lan
38. Company to Negotiate Insurance Plan With Union When Plan Is Complete
It is agreed that the company is preparing a plan involving hospitalization,
health, and accident insurance, and that when said plan is complete it will
present the same to the union and negotiate the terms and conditions thereof.
39. Reopening Clause Permits Negotiation of Insurance Program
The parties agree that paragraph 21a providing for reopening of the contract
for the purpose of wage negotiations every six (6) months may also be used for
the purpose of negotiating an insurance program. Inability to agree, the matter
shall take the same course as provided for wage disagreements [arbitration].
40. Joint Union-Ma/mgement Study of Insurance Plan Within SO Days A fter
Agreement Signed
It is agreed that a committee of two (2) representatives of each party to this
agreement will begin a thorough and detailed study of this matter [insurance]
not later than thirty (30) days from the signing of this agreement.
41. Negotiation on Benefit Plan Under Wage Reopening Clause Not Subject to
Arbitration or Strike
The subject of welfare and pension plans for longshoremen may be a matter of
negotiations in any wage review, but is not subject to arbitration or strike under
the wage review provision of the agreement.
42. Company to Maintain Own Plan Until Replaced by Participation in Union
Industry Fund, Dispute Over Participation Arbitrable
The company agrees to continue its contributions to the life and health insur
ance plan now in effect in the various plants until such plan shall be replaced
by participation of the company in the [union] insurance fund. Participation by
the company in the [union] fund shall be subject to continued negotiations be
tween the parties. I f the parties cannot agree on any matters related to such
participation in the fund, the question shall be subject to arbitration as provided
in Article X II.
43. Contributory Plan: Type and Amount of Benefits Determined by Joint Com
mittee, Disputes to Three-Man Committee, Including Insurance Broker
Decision on the type and amount of insurance such as life, accident, and health
for employees, hospitalization and surgical benefits for employees and dependents
shall be made after a thorough study by a committee composed of three (3) rep
resentatives of the union and three (3) representatives of the company. In the
event this committee is unable to agree upon types and amounts of insurance, dis
agreements thereon shall be referred to the president of the union, the president of
the company (or their designees) and a third party mutually agreed upon, who
shall be a competent insurance broker. Any decision made by the committee of
six (6) outlined above, or the reviewing committee of three (3) shall be final and
binding upon both parties hereto.
HEALTH, INSURANCE, AND PENSIONS
13
44. Contributory Medical Aid Plan—Details Submitted to Arbitration if no
Agreement Reached Between Parties.
It is the desire o f both the employer and the union that each employee shall be
covered by a medical aid contract, the employer to pay the cost thereof up to
$4 per month and the employee to pay the portion of the cost thereof in excess of
$4 per month. The medical aid contract shall be one agreed upon between the
employer and the union and in the event they cannot agree upon it then each of
them shall select one representative, then the presiding judge o f the superior court
o f --------- county shall, upon the application of either the employer or union,
upon five (5) days' notice to the other, select a third representative and the
majority of such representatives shall then decide upon the medical aid contract
to be entered into, and the decision of the majority shall be binding upon both
the employer and the union, and each employer and employee, and there shall be
no appeal therefrom.
E f f e c t iv e D a t e
of
P lan
45. Program Initiated as Soon as Parties Agree on Coverage and Costs
The parties agree that there shall be a plan o f group insurance to be effected
as soon as the parties can agree on coverage program and costs.
46. Noncontributory Plan To Be Established; Benefits To Be Jointly Determined
It is agreed that there will be developed and instituted, effective [date], a union
welfare fund plan which shall provide such benefits as shall be contained in an
agreement to be entered into between the parties and to which fund the employers,
in accordance with the terms of said agreement, shall contribute 2y2 percent of
the straight-time hourly base rates earned by the employees covered by this
agreement.
N ote.—The date specified in this clause is approximately 2 months after the
effective date of the agreement.
47. Contributory Plan: Employer to Provide Insurance Plan With Specified Types
of Benefits Within 6 Months
It is agreed that within 6 months after the effective date of this agreement, the
[employer] shall make available to all members of the [union] on the same terms
as applied to all other employees of the [employer] a specific group insurance plan
covering life, health, sickness, accident, and hospitalization and medical care.
The [employer] agrees, upon instituting such a plan, to pay on account of
premiums due and payable under such a plan, an amount equal to one-half (% )
the premium required.
48. Plan to Become Effective Upon Participation of 75 Percent of “Plan”
Employees
This plan will become effective only upon participation therein of seventy-five
(75) percent of the plan employees.
49. Plan To Become Effective When 75 Percent of Eligible Employees Have Ap
plied; Effective Date for Dependents9 Coverage Is Separately Determined2
This plan will become effective when at least 75 percent o f the eligible employees
make application for insurance. In order for benefits for dependents to become
effective, at least 75 percent of the employees with dependents must include their
dependents.
2 From a descriptive booklet or related material.
14
COLLECTIVE BARGAINING PROVISIONS
Type and Amount o f Benefits
Variation is wide in the type and amount of benefits provided, such
as, life insurance, death and dismemberment benefits, weekly cash
benefits during period of disability due to nonoccupational accidents
or illness, payment of hospitalization and surgical expenses, payment
o f doctors’ fees, etc. Some plans are quite complete and provide the
fu ll set of benefits listed above. Others provide only a few of them ;
still others only one or two, e. g., hospitalization and surgical benefits.
The amounts vary greatly among the plans and may be conservative or
liberal with respect to the entire program or with respect to only some
o f the benefits, the controlling factors being the presumed needs of the
group to be covered, the relative cost of covering the group for the
different types of benefit, and the amount of money available to provide
the benefits contemplated.
Preventive medical- and dental-care provisions, although seldom
found in collective bargaining agreements, are the core of the pro
grams of a few plans under collective bargaining which are outstand
ing. Notable are the Labor Health Institute in St. Louis, the
IL G W U ’s Union Health Centers in a number of cities including New
York and Philadelphia, and the miners’ medical care program.3
Health centers also are to be provided under agreements concluded by
the Amalgamated Clothing Workers (C IO ) and the New York Cloth
ing Manufacturers’ Exchange, and by the A F L New York H otel
Trades Council and H otel Association of New York City.
Detailed benefit plans in collective bargaining agreements, whether
illustrating a single benefit or a variety, are included in the first section
titled “ Specimen Benefit Plans.” Clauses illustrating particular as
pects or variations of a specific type of benefit are described and illus
trated in subsequent sections dealing with each type of benefit. Sev
eral complete plans are included in the appendix.
S p e c i m e n B e n e f it P l a n s
50. Noncontributory Combination Benefit Plan: Life Insurance With Double In
demnity; Permanent Disability Benefits; Hospitalization, Surgical E x
penses and Weekly Cash Sickness and Accident Benefits, All Including
M aternity; Medical Expense Benefits, Excluding Maternity. W eekly Cash
Benefits Geared to Weekly Earnings. Illness and Hospitalization Benefits
Shorter in Duration for Maternity Than for Other Causes.
The company agrees to maintain in force during the life of this agreement the
following insurance benefits (all as more fully provided in the group policy or
policies) for each employee of the company covered by this agreement:8
8 See Medical Service Plans Under Collective Bargaining in Monthly Labor Review,
January 1948, p. 34.
HEALTH, INSURANCE, AND PENSIONS
15
(1) Life insurance of $1,000, payable on death, plus an additional $1,000 if
death is due to accidental means.
(2) Permanent disability benefits as set forth in the group insurance policy.
(3) Weekly sickness and accident benefits computed on the basis of the em
ployee^ basic weekly earnings, as follow s:
Basic weekly earnings:
Weekly benefits
$15
Less than $30_____________________________________
$30 but less than $36______________________________
18
$36 but less than $42_______________________________
21
$42 but less than $48_______________________________
24
$48 but less than $54______________________________
27
$54 and over______________________________________
30
Such benefits shall begin, in the case of sickness, on the eighth day of disability,
and in the case of nonoccupational accident, on the first day o f disability, and
shall continue for a maximum o f twenty-six (26) weeks for any one disability,
provided that no employee over 60 shall be entitled to such benefits for more
than one twenty-six (26) week disability in any 1 year. “ Basic weekly earnings”
shall mean the employee’s hourly rate at the time of the disability multiplied by
the standard workweek prevailing in the company.
(4) Medical expense benefits beginning with the first medical attendance in
the case of accident and beginning with the fourth medical attendance in the
case of sickness in the amount o f three (3) dollars for each doctor’s visit at
the home or hospital, and two (2) dollars for medical attendance other than
at home or hospital, limited, however, to three (3) medical attendances in each
period o f seven (7) consecutive days and not more than fifty attendances as the
result of any one disability. No benefits under this paragraph shall be payable
for dental work or treatment, nor for eye examination or the fitting of glasses,
nor for X-rays, drugs, dressings or medicines, nor for medical expenses incurred
during disability resulting from pregnancy, which term includes resulting child
birth or miscarriage.
(5) Reimbursement for fees charged for surgical operations up to $150 accord
ing to the surgical schedule attached to the group policy, with provision for
commensurate benefits for operations not listed in said schedule.
(6) Daily hospital benefits equal to a maximum of six (6) dollars per day
for a maximum of seventy (70) days for any one disability, and reimbursement
for special hospital services as provided in the group policy up to a maximum
of sixty (60) dollars for any one disability.
(7) In case o f disability resulting from pregnancy, including resulting child
birth or miscarriage, the employee shall be entitled to the weekly sickness benefits
provided in subparagraph (3) o f this paragraph for a maximum period of six (6)
weeks, and will be entitled also to the obstetrical benefits set forth in the schedule
of operations and hospital benefits for not more than a maximum of fourteen (14)
days.
51. Noncontributory Combination Insurance Plan; Minimum Details Specified
The employer shall provide or continue in force existing insurance at his own
cost and expense, subject to the conditions hereinafter named, insurance providing
for the following benefits for each of the union members in his regular employ.
( а ) Life insurance in the sum of $1,000.
(б) Accidental death and dismemberment, $1,000.
( c ) Accident and health, 26 weeks, $30 per week.
16
COLLECTIVE BARGAINING PROVISIONS
( d ) Hospitalization for employee, minimum 31 days, $5 per day, $50 miscel
laneous expenses.
(e ) Hospitalization, employee’s wife and dependents, 31 days, $5 per day, $50
miscellaneous expenses.
( / ) Maternity benefits for employees’ wives, 10 days, $5 per day.
(g) Surgical up to $225, medical reimbursement up to $100 for any one illness
or accident.
Terms, conditions, and carrier to be acceptable and approved by the union.
52. Combination Plan: Listing of Benefits in Priority Order Based on Amount
Available To Provide Some or All Benefits.
The insurance and other benefits to be provided shall include the following
in the order listed to the extent to which the money to be expended will cover
the cost of the same:
1. Individual membership semiprivate plan in the organization known as the
Blue Cross.
2. Sickness and accident benefit payments.
3. Provision for payment of surgical expenses.
4. Group life insurance not to exceed $500 per individual.
5. Double indemnity provision covering accidental death and dismemberment.
53. Noncontributory Sick Benefit Fund: Benefit Payments Vary With Status
of Fund
Section 1.— The company agrees to contribute to a sick benefit fund on the
tenth of each calendar month during the contract period the sum o f one (1)
dollar per month for each employee in the bargaining unit on the pay roll on
the first of the month. This contribution shall be made by check payable to
“ sick benefit fund” and deposited in a bank to be agreed upon.
Section 2.— The fund will be administered by a committee composed of rep
resentatives of the union and the company in equal numbers. Payments from
the fund will be made only by check jointly signed by two (2) representatives,
one to be designated by the union and the other by the company. This fund
shall be used by the committee so designated for the relief of employees who
are prevented from working because of any sickness or injury not covered by
the workmen’s compensation act. Specific rules shall be drawn up, and may
be changed from time to time, by the committee created above in accordance
with the following principles: Payments shall be made from the fund toward
compensation of employees for wages lost and expenses incurred upon proof
satisfying the committee that the employee is prevented from working because
of sickness or injury as above described. The specific amount of payments may
be varied from time to time depending upon the amount of money on deposit
in the bank and expected future receipts.
Section 3.— In case a disagreement shall arise over the administration of the
sick benefit fund the company and the union will attempt to agree upon an im
partial umpire. I f within twenty (20) days o f conditions occurring which give
rise to the dispute no umpire is agreed upon, either party may petition the Dis
trict Court of the United States for the Eastern District of Oklahoma to ap
point an impartial umpire. The decision of the umpire so agreed upon or ap
pointed by the District Court shall be binding on all concerned.
Section 4.—At least once a year there shall be an audit o f the sick benefit
fund as above created, copies of which will be furnished the company and the
union and will be available for inspection by any interested party at both of
fices at all times.
HEALTH, INSURANCE, AND PENSIONS
17
Section 5.—At the end o f the contract period any money still in the fund
will be disposed of as follow s:
( a ) I f the same or an alternative sick benefit plan is agreed upon in a new
contract, such money shall apply against the company’s contribution to such a
plan.
(b) I f no plan is agreed upon for any reason, then benefits shall continue to
be paid as above to employees on the pay roll at the end o f the contract period
until the balance of the fund remaining at the end of the contract period is ex
pended.
54. Contributory Death Benefit Plan Covering Employee, Spouse, Children
It is agreed that the following death benefits will be paid: In the event of
the death o f a union member, or wife or husband of a member, fifty (50) dol
lars will be paid by the corporation, and the corporation is authorized to deduct
one (1) dollar from each member of the union, the total of such deductions
to be covered in one of the corporation’s checks and made payable to the
--------------- union.
It is further agreed, in the event of the death of a member of the immediate
family of a union employee, who is between the ages of fourteen (14) and
twenty-one (21) ; who is unmarried and an immediate member of the union
employee’s household, the corporation will contribute thirty-five (35) dollars,
and is authorized to deduct fifty (50) cents from each member of the union,
the total of such deductions to be covered in one of the corporation’s checks and
made payable to th e --------------- union.
It is further agreed, in the event of the death of a member o f the immediate
family of a union employee, who is under the age of fourteen (14) years, the
corporation will contribute twenty-five (25) dollars and is authorized to deduct
thirty (30) cents from each member of the union, the total of such deductions
to be covered in one of the corporation’s checks and made payable to th e-------------union. It is understood and agreed that the above mentioned $25 contribution
by the corporation, or the 30 cents deduction from each union member, shall not
be made in the event of stillborn births.
Should a death, as defined above, occu r d u rin g a strike, lock-out, or shut-down,
death benefits shall be paid as herein provided upon resumption o f work, and
all claims shall be paid in turn.
55. Employer Financed Health Center.
side the Bargaining Unit
Employer May Cover Employees Out
It is agreed that the company shall pay into t h e ----------------health institute
a sum equal to 5 percent of the gross pay (before deductions for social security,
taxes, union dues, etc.) of all full time regular employees of the company with
the collective bargaining unit and covered by this agreement, plus five (5) per
cent of the pay of any other persons regularly in its employ full time whom the
company may wish to enroll.
Payments to t h e ------------— health institute hereunder shall be made weekly,
biweekly, monthly, or otherwise as may be agreed between the company and
th e --------------- health institute and shall continue for the duration of this con
tract.
The company shall have no right, title, or interest in any moneys so paid
or in the funds o f the — ----------- health institute, or its control or manage
ment except as provided in the bylaws of the ------------------- health institute.
No employee shall have any right, title, or interest in any moneys so paid or any
claim against the company or the -------------- — health institute or the union
18
COLLECTIVE BARGAINING PROVISIONS
or any right, title, or interest in the control and management of said — ----------health institute.
The company’s and employee’s right, title, and interest shall be limited to
medical and health services to employees and members o f their families while
said employee is in the employ of said employer except as otherwise provided
in the bylaws of sa id ----------------health institute.
56. W eekly Cash Benefit, Surgical, Medical, and Dental Care While Assigned
Outside United States, With Transportation Back to Port of Embarkation
if Hospitalization Becomes Necessary
Any employee covered by this agreement who is laid up because o f sickness or
natural ailments or an injury sustained outside the scope o f his employment,
and who is unable to work according to the judgment o f a physician, shall be
paid his monthly wages and all other earnings up to the date so laid up, and
shall thereafter be paid only the sum of $50 per month from the date so laid up
until able to work or until placed in a hospital or until transported to a place
where hospital facilities are available, at which time the company’s liability shall
cease. It shall be, however, the thorough understanding that in the case of
sickness or natural ailments or an injury sustained outside the scope of his
employment, that the company will not be liable for wages after the date the
majority of the employees of such cannery have arrived at port of embarkation.
In the event of a dispute, the superintendent will also make an effort to secure
the opinion of another qualified physician. All employees so laid up through
sickness or natural ailments while engaged under this contract, shall receive
medical and surgical attention and necessities without charge so long as they
shall be entitled to payment o f the $50 per month under the terms of this section.
This does not apply in cases of proven or obvious venereal diseases, intoxication,
brawls or fights.
In the event of sickness or accident which may cause the employee to be sent
to a hospital away from the cannery it is understood that his transportation
back to port of embarkation will be paid by the company as well as all wages
due him.
Additional care.—In case o f serious illness of accident where no competent
hospitalization or suitable medical attention is immediately available, every
feasible effort shall be used by the company to transport the men to the nearest
hospital.
Additional medical benefits, dental services.—Medical, dental, and surgical
services shall be furnished by the company free of charge. Dental service shall
consist of extractions and the treatment of infections resulting from said
extractions.
N ote.—This agreement covers fishing and cannery workers transported to
Alaska from continental United States.
57. Employer To Pay Specified Sum to Mmtual Benefit Association and Pay
Administrative Expenses; Provides Medicines Free or at Less-Than-Cost
Price up to $10,000 Per Year
The employer shall, in addition, during each year throughout the term hereof,
the first year to commence as of February 1, 1948, (1) pay to the mutual benefit
association for its purposes the sum of fifteen thousand (15,000) dollars and
(2) pay the administration expense of such mutual benefit association. The
employer further agrees to contribute the sum of ten thousand (10,000) dollars
per year to be administered by the employer and the union in accordance with
a plan to be agreed upon between the parties in accordance with the relevant
HEALTH, INSURANCE, AND PENSIONS
19
terms of the Labor Management Relations Act of 1947, for the purpose of pro
viding medicine on doctors’ prescriptions, for employees covered by this agreement
at cost, less than cost or free, as may be agreed upon.
58. Industry Benefit Fund Based on Employer Contributions, Used To Purchase
Insurance. Individual Unions To Determine Type and Extent of Benefits
For the period commencing February 1,1948, to and including February 9,1948,
and for the period commencing March 18, 1948, to and including the date of
termination of this agreement, each employer shall contribute a sum equal to
fifty (50) cents for each day or night’s pay (including vacation and holiday pay)
earned by each of its employees covered by this agreement.
The sum so contributed is not for wages earned or compensation for services
rendered but as means of promoting the health, welfare, and contentment of
such employees, and upon payment thereof to the escrowee as hereinafter pro
vided, shall be used solely and exclusively for the purpose of providing death,
sickness, accident, health, retirement, and miscellaneous related benefits, or any
one or combination thereof, for the members of the respective unions employed
by the employers herein, and their families and dependents (or for the benefit of
such members, their families and dependents jointly with other members of the
respective unions employed by other employers in the baking industry making
similar contributions, and their families and dependents). Each of the unions
shall have the right to determine for itself the type and extent of benefits within
the purposes above specified best suitable for its respective membership and to
determine for itself the plan most appropriate for the implementation thereof.
Said contributions of the employers shall be paid by them weekly to [bank],
as escrowee, who shall deposit the same in separate special accounts for the
respective unions and hold and use the same for said purposes, subject to and
in accordance with the terms and conditions hereinafter specified.
Local — having heretofore procured group insurance from t h e --------- insur
ance company providing certain death, sickness, accident, health, and miscellane
ous related benefits for its members employed by other employers in the baking
industry, and their families and dependents, it is agreed that the members of
local — employed by the employers herein, and their families and dependents,
shall be accorded the same insurance benefits, and for the purpose of providing
immediately therefor, the escrowee shall pay monthly, out o f the funds accumu
lated in the special account maintained by it as aforesaid for local — , the
premiums necessary to pay for such insurance benefits, said premiums to be in
the amounts billed by said insurance company in accordance with its agreement
with local —.
Any surplus remaining in such special account after payment o f the premiums
as aforesaid, shall be retained by the escrowee until such time as local — presents
to the employer herein, a lawful plan for the application and utilization o f such
surplus for any of the purposes hereinabove specified in subdivision (b). Such
plan shall not involve the employers in its administration through a trustee or
otherwise. The right o f the employers to object to any such plan shall be limited
to the question of its legality. The escrowee shall dispose o f the surplus as
provided for in the plan, upon approval in writing of its legality by the employers,
or in the event of any dispute with respect to its legality, upon approval of its
legality by the general counsel o f the National Labor Relations Board, the parties
agreeing to submit any such dispute to said general counsel. If said general
counsel approves the legality o f any such plan, the employers herein agree to
execute such instrument as may be required by said escrowee in order to dispose
of said surplus in accordance with said plan.
20
COLLECTIVE BARGAINING PROVISIONS
The contributions of each of the employers herein shall be made to the escrowee,
weekly at the time of the weekly pay-roll payment, and at the same time said
employer shall in writing notify local — of the amount thereof. Commencing
with the first of such contributions, and not later than three (3) days (excluding
Sundays and holidays) after each subsequent 4-week period, said employer shall
furnish to local — a statement showing the total amount of the contributions
made by it during such period, specifying the names of the employees for whom
contributed and the number of days’ or nights’ pay earned as aforesaid by each
of such employees. Simultaneously with the payment o f each premium to the
aforesaid insurance company, as provided for hereinabove, the escrowee shall
furnish to local — and to the [employers’ association] a statement showing the
amount of such premium and the amount of surplus then remaining in the special
account maintained for local — . Any records kept by the escrowee pertaining
to said special account shall be available for examination and inspection by
local — and the employers herein at all reasonable times at the office of the
escrowee and the [association] is entitled to information from the insurance
company as to the type of insurance and the employees covered by such premium
payments.
The compensation o f the escrowee shall be paid out of the funds in the said
special account in accordance with its agreement with local — . If such funds
are insufficient for said purpose, local — shall pay the amount o f any deficiency.
N ote.—Two locals o f the same international are signatory to this agreement.
L if e I n su r a n c e
and
A
c c id e n t a l
D eath
or
D i s m e m b e r m e n t B e n e f it s
L ife insurance or death benefit payments which an otherwise eligible
employee may obtain either may consist of flat amounts or may vary
with the individual’s earnings or occupational classification; occa
sionally, length of service is also a factor. Under a few plans, orig
inally sponsored by employers and later brought within the agreement,
the employer provides a minimum insurance coverage with additional
coverage up to a specified maximum paid for, either in whole or in
part, by the employee.
Benefits for accidental death or dismemberment (loss of limbs,
sight, and occasionally speech or hearing) are often combined with
life insurance. Partially at least, the same purpose is served in other
plans by a provision for double indemnity for accidental death (i. e.,
double the face value of the policy). In many instances, benefits are
paid only when such accidental death or disablement occurs as a result
of a nonoceupational accident, i. e., one not compensable under work
men’s compensation laws.
The additional amount paid for accidental death or dismemberment
usually is equal to the amount of ordinary life insurance. This amount
is also payable for loss of two limbs, the sight of two eyes, or such
combinations as one hand and one foot. H alf of this benefit is com
monly payable for the loss of one limb or use of one eye. The amount
paid for dismemberment is frequently listed in a schedule of losses
which may or may not appear in the collective bargaining agreement.
HEALTH, INSURANCE, AND PENSIONS
21
Methods for life insurance benefit payments sometimes vary. Death
payments, although usually made in a lump sum, in some plans may
be made in installments.
In the event of total permanent disability of the employee before
a stipulated age (usually 60 years), some plans provide for payment
in installments to the employee of the amount of his life insurance.
Others waive premium payments during disability and pay the face
value to the beneficiary when the employee dies.
59. Life Insurance, Uniform Amount
The employer shall provide or continue in force existing insurance at his own
cost and expense, subject to the conditions hereinafter named, insurance pro
viding for the following benefits for each of the union members in his regular
employ.
{a) Life insurance in the sum of $1,000
*
*
*.
60. Life Insurance—Specified Amount; No Limit on Additional Amounts Pur
chased at Employee’s Option With Specified Employee Contributions
The company agrees, on or before September 1, 1947, to make available to all
active employees having seniority, the opportunity of purchasing life insurance
protection which shall supplement the life insurance protection now provided to
all employees at the company’s sole expense.
Employees may purchase such additional life insurance, which will be offered
under a standard plan, at a monthly premium rate of sixty (60) cents per $1,000
principal of protection, with the understanding that all costs in excess thereof
shall be assumed and paid for by the company.
The union and the company agree to promptly appoint committees for the
purpose of effectuating and presenting this plan to the employees.
61. Noncontributory Life Insurance—Specified Amount; Additional Amounts
Optional if Employee Contributes. Maximum Coverage Equal to Previous
Year's Earnings. Employee Must Reimburse Employer for Premiums
Paid in His Behalf During Disability
At the option of the employee, the company will continue to furnish the same
amount of life insurance as has been furnished in the past and which was
furnished at the company’s expense. The employee may elect to carry a total
coverage equal to, but not exceeding, his current annual wages. The company
will furnish, entirely at its expense, the first $1,000 of coverage under the plan.
The employee will pay at the rate of sixty (60) cents per $1,000 per month for
the balance of his insurance.
Current annual wages to mean previous year’s earnings. The company further
agrees that it will pay the premium of an employee who is sick or disabled pro
vided, however, the employee on his return to work reimburses the company to
the extent of the premium paid.
62. Amount of Life Insurance Geared to Length of Service, up to Specified
Maximum
A five-hundred (500) dollar life insurance policy paid for by the company
shall be issued for every regular employee after six (6) months of service, in
creasing to*six hundred (600) dollars at the end o f the first year and increasing
one hundred (100) dollars per year thereafter until it reaches a full value of
875403°— 50----- 3
COLLECTIVE BARGAINING PROVISIONS
22
fifteen hundred (1,500) dollars. The beneficiary on such policies shall be as
specified by the individual employee.
63. Noncontributory: Life Insurance Varies With Length of Service. Amount of
Insurance for Which Eligible Differs With Rehire After Lay-Off as Against
A fter Quit or Discharge
Every employee at the completion of 1 year’s service with the company will
receive an insurance policy of $500, which is to be increased $100 on each anni
versary date thereafter until a maximum of $1,000 is reached. The full premium
will be paid by the company.
If an employee is laid off, the policy is effective for 30 days after the lay-off
date. I f he is reemployed before losing his seniority status, in accordance with
paragraph 23, subsection (e ), the policy will be reinstated at the amount he
would have received had he been working and will continue as usual.
Should an employee quit or be justifiably discharged, his insurance will remain
in effect for 30 days; and if he is later reemployed, he will be considered a new
employee and his insurance will be handled as such.
N ote.—Paragraph 23, subsection (e) stipulates loss of seniority because of
lay-off exceeding a specified duration for each of 3 brackets of seniority.
64. L ife Insurance Equal to 1 Year's Earnings, Minimum and Maximum Amounts
Specified, Plus Funeral Allowance
Each employee completing 3 months of service will become insured in the
amount of 1 year’s salary or wages plus $100 funeral expenses but not less than
$600 nor more than $3,100.
65. Employer Provides Insurance Equal to Amount Employee Purchases From
Union. Dividends Paid to Employee
Any employee taking five hundred (500) dollars or more of [union] insurance
shall have the premiums paid by the company on additional five hundred (500)
dollar policy. All dividends to accrue to employees.
66. Contributory: Amount of L ife Insurance Varying by Wage B racket2
Salaried employees with basic monthly earnings o f :
Life insurance
Less
$138
$170
$230
$325
$500
than $138----------------------------------------------------- $1,000
but less than $170---------------------------------------- 1,000
but less than $230___________________________ 2, 000
but less than $325___________________________ 3,000
but less than $500___________________________ 4,000
or more------------------------------------------------------- 5, 000
Other employees with basic monthly earnings of :
Less than $138___________________________________
$138 or more-------------------------------------------------------
1,000
1,000
67. Contributory Plan: Employees May Maintain Insurance at Level of Highest
Earnings in Event Earnings Drop
The company agrees that over-all earnings, excluding overtime, shall be used
as a basis for determining insurance brackets. Employees whose earnings are
reduced may maintain their insurance at the highest level earned. Such em
ployees shall be notified that their insurance policy is to be reduced unless they
notify the company of their desire to maintain the higher level.
2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
23
N ote.—Benefits vary with earnings under this plan and employees’ contribu
tions vary accordingly.
68. Life Insurance, Uniform Amount; Double Indemnity
Life insurance of $1,000 payable on death, plus an additional $1,000 if death is
due to accidental means.
69. Life Insurance and Accidental Death and Dismemberment; Uniform Amount
Group life insurance coverage of $1,500. Accidental death or dismemberment
of $1,500.
TO. Life Insurance and Nonoccupational Accidental Death or Dismemberment;
Uniform Amount
The company will provide for each employee covered by this agreement, who
has been in the employ of the company at least ninety (90) days, a policy of
insurance with th e --------- Insurance Company of America, providing for life in
surance in the principal sum of one thousand (1,000) dollars, nonoccupational
accidental death and dismemberment insurance in the additional principal sum
of one thousand (1,000) dollars.
71. Life Insurance, With Double Indemnity, Uniform Amount; and Dismember
ment Benefits
Life Insurance—$1,000 ($500 additional if death is due to accident)
*
*
*
*
*
*
*
Dismemberment Benefits— (The amount to vary with the extent of the injury
but the principal sum to be $500.)
72. Life Insurance Benefit Half the Amount Paid for Accidental Death or Total
Dismemberment Due to Nonoccupational Accident
Schedule of benefits:
A. $500 life insurance.
B. * * *.
C. An accident policy with benefits payable for the following losses due to non
occupational accidents:
1.
2.
3.
4.
5.
6.
$1,000 loss o f life.
$1,000 loss of both hands or both feet.
$1,000 loss o f sight of both eyes.
$1,000 loss of one hand and one foot.
$1,000 loss of one hand or one foot and sight of one eye.
$500 loss of one hand, foot, or sight of one eye.
73. L ife Insurance Benefit Twice the Amount Paid for Accidental Death or
Total Dismemberment Due to Nonoccupational Accident
(a ) On death $1,000.
(b) Accidental death (in addition to regular death benefits in clause ( a) )
dismemberment and loss o f sight benefit in maximum amount of $500 for non
occupational accident sustained solely through external, violent, and accidental
means, that is, loss of—
Life, or
Two hands, or
Two feet, or
Sight of two eyes, or
One hand and one foot, or
One hand and sight of one eye, or
One foot and sight of one eye
24
COLLECTIVE BARGAINING PROVISIONS
in the amount of $500; or one-half amount for loss of one hand or one foot or the
sight of one eye.
74. Life Insurance Paid in Installments to Employee Who Suffers Permanent
Total Disability Before Age 60
If an employee qualifies under the policy provisions for permanent- and total
disability benefits prior to age 60, the amount o f his life insurance will be paid
to him in installments.
W eekly S ickness and A ccident B enefits
Cash sickness and accident benefits are intended to protect workers
against complete loss of income through illness or accident not covered
by workmen’s compensation.
Benefits are almost invariably paid weekly, usually after a short
waiting period. Eligibility for payment generally begins with the
first day in case of accident and the eighth day, sometimes the fourth,
in case of sickness. Sometimes the waiting periods are identical.
Restrictions are more stringent with respect to sickness than accident.
Under a few plans, an employee who is ill for a minimum specified
period receives benefit payments retroactive to the first day of
disability.
The weekly cash benefits may be paid (1) at a flat rate for all
employees; (2) as a given percentage of the individual worker’s earn
ings, with or without minimum or maximum amounts specified, or
(3) at specified amounts for given wage brackets. Sometimes differ
entials are based upon sex.
The maximum period during which benefits are paid is in most
plans limited to a given number of weeks’ pay for each disability,
except for persons age 60 or over for whom the specified number of
weeks apply to 1 year. Thirteen or 26 weeks’ maximum for any one
disability are most common. In a few plans, benefits are not payable
for more than the specified number of weeks during any 12 consecutive
months. This restriction is, in a few cases, confined to sickness. One
plan which limits annual duration regardless of age allows 13 weeks
for sickness and 13 for hospitalization, or a total of 26 weeks in any
year. A minimum period of work between spells of incapacity is
sometimes stipulated. Under one plan, payments are made for a
maximum of 10 months’ sickness and of 5 years in accident cases.
It is almost universal to lim it payment of benefits to sickness and
accident disabilities not covered by workmen’s compensation. A few
plans exclude only compensable accidents but authorize benefits for
sickness, whether or not work-connected.4 Regular weekly non
4 See also section on Maternity Benefits, p. 34.
HEALTH, INSURANCE, AND PENSIONS
25
occupational accident benefits are supplemented by one employer by
a lump-sum of $25 for each period of disability. (For paid sick leave
plans and illustrations of clauses providing supplements to work
men’s compensation benefits, see Bulletin No. 908-6, Leave of Absence
and Military Service Leave.)
75. Uniform W eekly Benefit; 'No Reference in Contract to Waiting Period or
Duration of Benefits5
Weekly Accident and Sickness Benefits (nonoccupational
coverage)------------------------------------------------------------------------ $25 per week
76. Uniform Weekly Benefit for IS W eeks; 1-Day Waiting Period for Accidents
and Sickness
Sickness and accident benefits of thirteen (18) weeks at fifteen (15) dollars
per week with a seven (7) day waiting period.
77. Uniform W eekly Benefit for IS Weeks; Waiting Period Differs Between Sick
ness and Accident
Group accident and health insurance at the rate of $20 per week for not
exceeding 13 weeks, commencing with the first day for nonoccupational accident
and the fourth day for nonoccupational illness.
78. Contributory: Weekly Benefits Begin With the First Day o f Accident and
Eighth Day of Illness. I f Illiness Lasts for Four or More Consecutive
Weeks, Payments Are Retroactive to the First Day. Maximum Annual
Duration 12 Weeks?
You receive $15 a week up to 12 weeks when you are forced to be away from
work because of illness or injury.
Sick benefits are paid after you are away from work for one full week. How
ever, if you are ill for a period of four or more consecutive weeks, benefits will
be paid for the first week of lost time.
I f you are injured, you will receive benefits for time lost, dating from the
date of injury.
79. Noncontributory: Waiting Period for Sickness, None for Accident
Benefits shall begin not later than the first day of any disability due to accident
and the eighth day o f any disability due to sickness.
80. Uniform Weekly Benefits for Maximum of 26 Weeks Per Disability
The policy shall provide benefits of twenty-two (22) dollars per week for a
maximum period of not less than 26 weeks for any one period of total disability
due to nonoccupational sickness or accident not compensable under workmen’s
compensation or similar acts.
81. No Differentials in Benefit Amounts Because o f Earnings or A g e; IS Weeks'
Maximum Annually for Disability A fter Age 60
There shall be no discrimination with respect to the benefits paid hereunder
[sickness and accident insurance] by reason of earnings or age o f any employee
except that in the case of employees of sixty (60) years of age and over benefit
2 From a descriptive booklet or related material.
5 Waiting period and duration of benefits are frequently specified in the employee booklets
given to participating employees although, as in this agreement, they are not mentioned
in the contract.
COLLECTIVE BARGAINING PROVISIONS
26
payments may be limited to a total of thirteen (13) weeks in any consecutive
twelve (12) month period.
82. Noncontributory: Weekly Benefit Varying by Wage Bracket
Weekly accident and sickness benefit (reduced by Rhode Island cash sickness
benefits)
Employee’s average weekly earnings
Weekly benefits
$15
Under $30_________
$30 but less than $36________________________________________
18
$36 and over_________________________________________________ 21
83. Weekly Benefits Varying by Wage Bracket; Number of Disability Periods
Compensated Unlimited, Provided 2 Weeks Worked Between Periods of
Disability
The company agrees to purchase health and accident insurance covering all
regular employees which will pay the respective benefits listed below :
Weekly wage scale
Weekly health and
accident benefit
$40 but less than $60_________________________________________ $20
$60 but less than $80_______________________________________ 30
Subject to its usual rules, the insurance company will pay a weekly benefit while
such employees are disabled and prevented from work as a result of a nonoccupational accident or a disease for which benefits are not payable under the Work
men’s Compensation Law.
The weekly benefit will commence on the first day of disability resulting from
accident or on the eighth day of disability resulting from such disease. Benefits
are payable for a maximum period of thirteen (13) weeks for any one disability.
However, the employee will again be eligible for this coverage if he returns to
active work and completes two (2) weeks of continuous active service after a
previous period of disability.
Payment will be made for as many separate and distinct periods of disability
as may occur.
84. Maximum Weekly Compensation Equal to Two-Thirds of Basic W eekly Salary
or $60, Whichever Higher, for IS Weeks. Physician’s Certification of
Disability Required
The association agrees that such insurance protection will provide the following
minimum benefits, subject to standard insurance underwriting procedure.
(a) Compensation for disability due to nonoccupational illness to commence
on the eighth consecutive calendar day of absence by the employee from the
employer’s plant by virtue of such illness, provided that such disability is certified
to by a physician legally licensed to practice medicine.
( b) Compensation for a nonoccupational accident to commence on the first day
of absence by the employee from the employer’s organization, provided that such
absence is certified to be as a result of such nonoccupational accident by a phy
sician legally licensed to practice medicine.
(c ) Compensation to continue during each sickness or accident disability period
for a maximum of 13 weeks.
(d) Compensation to be based on an employee’s base salary for 40 hours of
work, and will not exceed in any instance 66% percent o f such base salary, and
in no instance will sickness or disability compensation exceed $60 per week regard
less of an employee’s basic weekly salary.
HEALTH, INSURANCE, AND PENSIONS
27
85. Benefits Paid for 52 Weeks Based on 60 Percent of Average P ay; Maximum
Weekly Benefit, $JjO2
You receive a weekly cash benefit as indicated in your certificate of insurance.
The amount of benefit is approximately equal to 60 percent of your average
salary or wages not exceeding $40 per week—for as long as your total disability
continues—up to 52 weeks.
86. Monthly Accident Benefit for 5 Y ears2
Under the accident part of your policy, it pays from the first day of disability
up to 5 years so long as you are unable to work.
N ote.— Sick benefits are payable for 1 month of nonconfining illness and 9
months' confinement to the house.
87. Benefit Amount Varies by S e x 2
The amount of accident and sickness benefits is $12 per week for a man, or $8
per week for a woman. These weekly payments will be made while you are unable
to work because of an accident or sickness that is not covered by the workmen's
compensation laws.
88. Relief Fund for Sickness and Accident Not Covered by Workmen's Compensa
tion Payments Vary With Amount in Fund
The company agrees to contribute to a sick benefit fund on the tenth day of
each calendar month during the contract period, the sum o f one (1) dollar per
month for each employee in the bargaining unit on the pay roll on the first of
the month. This contribution shall be made by check payable to “ sick benefit
fund” and deposited in a bank to be agreed upon.
The fund will be administered by a committee composed of representatives of
the union and the company in equal numbers. Payments from the fund will
be made only by check jointly signed by two (2) representatives, one to be
designated by the union and the other by the company. This fund shall be used
by the committee so designated for the relief of employees who are prevented
from working because of any sickness or injury not covered by the compensation
act. Specific rules shall be drawn up, and may be changed from time to time,
by the committee created above in accordance with the following principles:
Payments shall be made from the fund toward compensation of employees for
wages lost and expenses incurred upon proof satisfying the committee that the
employee is prevented from working because of sickness or injury as above
described. The specific amount of payments may be varied from time to time
depending upon the amount of money on deposit in the bank and expected future
receipts. However, at any one time payments may be varied by the committee
as to individual employees based only on hardship incurred.
89. Employer Supplements Hospital and Health Insurance Payments for Nonoccupational Injury by Lump-Sum Payment for Each Period of Disability
The company has agreed to the improved hospitalization and health insurance
plan to become effective 1 month after May 25,1948.
I f an employee is injured outside of his scope of his employment and is in
capacitated to such extent as to compel him to be confined to his home or to be
hospitalized and if by reason of the same he receives benefits from the insurance
company under the group insurance plan, such employee is to receive from the
employer the sum of $25 on the first regular pay day after his return to work
in order to augment his insurance benefits.
2From a descriptive booklet or related material.
28
COLLECTIVE BARGAINING PROVISIONS
90. Employer Compensates for Waiting Period Not Compensable Under State
Workmen’s Compensation Law
In all cases of injuries, except those of acid or chemical effects,*6 where the
State compensation law requires a waiting period of 7 days before compensa
tion is paid, the company shall pay the employee so injured, for the 7 days or
part o f the 7 days’ waiting period, an amount equal to that which would be paid
by the compensation department, provided that in cases where the injury results
in loss of more than 3 weeks’ time, in which event the company will not pay for
loss o f time as the compensation department will pay the injured employee for
all the time lost as a result of injury. All such injuries must occur during the
course of the employee’s employment, before and in order to be entitled to
compensation for the injury.
91. Noncompensable Work-Connected Accident: Benefits Paid for First 5 Days.
Compensable Accidents: Workmen’s Compensation Supplemented up to Full
Pay for 90 Days
I f an employee has a plant accident which causes him to lose time and for
which he is not entitled to compensation he shall receive eighty (80) percent of
his regular pay for the first five (5) scheduled days lost.
If an employee is involved in a plant accident for which he is entitled to
compensation because of any employer’s liability law or workmen’s compensation
act, he shall receive a sum which will bring his total income, including compensa
tion, up to eighty (80) percent of his regular pay for each of the first five (5)
scheduled days lost, ninety (90) percent for the next five (5) scheduled days
lost and full pay thereafter, this adjustment to be made for not more than
ninety (90) days for any one accident.
H o s p i t a l i z a t io n
Hospitalization benefits cover room and board up to a specified
amount per day for a fixed number of days, plus certain hospital
services. Generally, the room and board provided for refer to semi
private or ward accommodations, and the services are specified. Bene
fits are limited to cases which are not compensable under workmen’s
compensation.4
These benefits are provided either: (1) as a service to the employee,
with payments made directly to the hospital, usually through Blue
Cross7 or similar group-hospitalization organizations; or (2) by
4 See also section on Maternity Benefits, p. 34.
6 Employee is allowed up to 1 week’s full pay for time lost by acid or chemical effects,
not exceeding the number of hours in a regular workweek.
7 The term “ Blue Cross” merely signifies approval of a plan by the Blue Cross Commis
sion of the American Hospital Association and rarely appears in the names of the plans,
which vary from locality to locality. Blue Cross plans generally provide room and board
in a member hospital in a semiprivate room or ward, according to the amount of premium
paid. Benefits as stipulated are usually payable for a period o f at least 21 to 30 days a
year and partial benefits for an additional 50 to 180-day period. In some plans, a uniform
amount is payable throughout the benefit period, which ranges as high as 120 days. Mater
nity benefits are payable on a restricted basis, with an eligibility waiting period of from
6 to 12 months. Coverage of dependents is at the option o f the employee, if the employer
does not pay the full cost, and is usually identical in amount to that of the employee. Types
and extent of incidental hospital services and supplies included vary with the plan. Cash
allowances, differing from plan to plan in amount and duration are paid to employees for
emergency hospitalization in nonmember institutions.
HEALTH, INSURANCE, AND PENSIONS
29
direct cash reimbursement to the employee for his expenses, through
some form of commercial group insurance. In both cases, the amount
of the benefit is limited and the employee is responsible for costs in
excess of the stipulated maximum benefits. Under commercial group
insurance, the number of days of hospitalization commonly is limited
for any one disability but not for the year; under most Blue Cross
plans, the limit is on an annual basis.
Hospitalization benefits are usually the same for all participants;
some plans, however, vary the daily rate, according to the earnings
or occupational classification of the employee. Payments usually
range from $4 to $7 a day for 31 days for any one hospitalization
period, although greater amounts and longer maximum periods are
sometimes provided. Under some plans, no benefits are paid for hos
pitalization lasting less than, for example, 18 consecutive hours; in
others, benefits are paid after only 6 hours or even less in surgical or
emergency cases. Benefits are frequently restricted (and sometimes
excluded) if hospitalization is due to pregnancy.
Hospitalization Service
92. Hospitalization Benefits Under Blue Cross Plan. Seasonal and Probationary
Employees Excluded
The company agrees to carry the Blue Cross Hospitalization Plan for its
employees in [city] and [city]. This plan will cover for each of our regular
employees hospital and surgical attention within the limits of the plan. This
plan does not cover seasonal and probationary employees but only regular
employees. The Blue Cross association at each place will give the employees a
card or letter outlining the benefits.
93. Blue Cross Type Plan: Dependents Covered
The company agrees to purchase the Blue Cross family plan of group hos
pitalization insurance for all regular employees and their immediate families.
This insurance will be subject to the usual rules of the Associated Hospital
Service covering the Blue Cross Family Plan.
94. Blue Cross Type Plan: Dependents Covered Except Working Spouse Where
No Children in Family
The employer agrees to pay the Blue Cross plan of hospitalization of the
employees in his plant who are members of local — . Such payment shall be
directly to the Blue Cross organization and the cost thereof shall be one (1)
doUar per month for each employee who is single and two (2) dollars per month
for such employee and his wife, or husband, and children, up to age 18 years.
In no event shall the cost exceed two (2) dollars per month for any one employee
and his immediate family, if any.
In order for employees to be eligible to be included in such group plan of
hospitalization insurance, he shall have worked in the employer’s plant for at
least 3 months. After such eligibility is established, the employer shall enter
such employee in the above plan and shall pay the cost thereof for the employee
in accordance with the above.
All employees who have been in the employ of the employer for at least 3
months by November 1, 1948, shall be entered in such plan immediately after
said date.
COLLECTIVE BARGAINING PROVISIONS
30
It is understood between the employer and the employees in cases where an
employee’s husband, or wife is working at another establishment and the em
ployee has no children, then only the employee will be covered by such Blue
Cross Hospitalization.
95. Blue Cross Type Plan: Family Coverage Optional With Employee at His
Cost
The company will pay the premiums f o r --------- hospital and surgical service
for each hourly-rated employee after his probationary period. This does not
include the premium for the members of his family and provides ward service.
If the employee wishes to cover his spouse and family or to have semiprivate
service, the additional premium shall be paid by the employee.
Reimbursement for Hospital Expense
96. Flat Amount; Duration Not Specified
Hospital benefits (General prevailing; not less than Blue Cross)
$60 hospital fee------------------------------------------------------------------------ $6 per day
97. Flat Amount; Maximum Duration SI Days Per Disability, Minimum 18
Hours
Hospital expense benefits:
Limit.— 81 days during any one continuous period of disability. $5 daily with
$25 special benefits. (This becomes payable only if the employee is actually
admitted to a regular hospital and remains there for 18 hours or longer.)
98. Hospitalization Benefit Amount Varies by Wage Bracket
Employee's weekly earnings
$13.50 but $25 but less $35 but less
less than
than $35 than $45
$25
$45 and
over
$4
$4
$5
Daily hospital expense benefits.
$6
20
20
Maximum special hospital fees.
30
25
N ote .— Weekly sickness and accident benefits under this plan also vary,
greater amounts being paid to those in higher wage brackets.
99. Hospitalization and Surgical Benefits for Dependents; No Difference in Bene
fit Amounts Between Employees and Dependents
For employees
Life
insurance
$ 2,
000
Accidental
death and
dismemberment
insurance
Weekly
health and
accident
benefit
$2, 000
$21
2
Medical
expense
benefit
Daily
hospital
benefit
$2-$3
$6
Special hospital
fees
Maximum
surgical fee
benefit
Up to $150
$187. 50
For dependents of employees
Daily hospital benefit
$6
Special hospital fees
Up to $150
M aximum surgical fee benefit
$187.50
100. Hospitalization and Surgical Benefits for Dependents; Dependents Receive
Smaller Surgical Benefit Than Employees But Same Hospitalization Benefits
Employee coverage2
1. Weekly accident and sickness benefit___________________________$21
2. Hospital expense insurance daily benefit---------------------------------5
Maximum additional benefits________________________________ 100
3. Maximum surgical expense insurance___________________________150
2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
31
Dependant coverage
4. Hospital expense insurance
Maximum daily benefit----------------------------------------------------------- $5
Maximum additional benefits__________________________________ 100
Maximum maternity benefits-------------------------------------------------- 50
5. Maximum surgical expense insurance-------------------------75
101. Amount and Duration of Hospitalization Benefits Different for Employee,
W ife, Dependent Children. Ninety-one-Day Maximum Benefit for Employee
Daily benefit of $5 for each day o f hospital confinement for any one illness or
injury not exceeding 91 days; plus indemnity for actual costs incurred for spe
cial charges not to exceed $25 during any one period of hospital confinement;
plus $150 maximum surgical charges.
For the wife of the employee: Daily benefit of $5 for each day of hospital con
finement for any one illness or injury not exceeding 31 days; plus indemnity for
actual costs incurred for special charges not to exceed $25 during period of hos
pital confinement. For the dependent children of the employee: Daily benefit of
$4 for each day of hospital confinement for any one illness or injury not to ex
ceed 31 days; plus indemnity for actual costs incurred for special charges not to
exceed $20 during period of hospital confinement.
102. Same Daily Benefit But Lesser Amount Paid to Dependent for Other Hospital
Charges. Duration of Benefits Not Specified
Benefits for employees:
Hospitalization______$6 per day and a maximium of $60 for other hospital
charges.
*
*
*
*
*
*
*
Benefits for dependents of employees:
Hospitalization---------$6 per day and a maximum of $30 for other hospital
charges.
103. Hospitalization Benefits Paid for Emergency Treatment for Nonoccupational
Accident Even Though Hospital Makes No Charge; SI Days9Maximum Per Con
finement, Except for Maternity
Hospitalization benefits will be payable if an employee, or an employee’s de
pendent, is confined in a legally constituted hospital, and if the hospital makes a
charge upon the employee for board and room; provided, however, that in the
case of emergency treatment for a nonoccupational accident, the benefits will be
payable even though the hospital does not charge the employee for board and
room. (A nonoccupational accident is one for which benefits are not payable
under a workmen’s compensation law.)
The plan will pay an employee the amount charged by a hospital for board and
room, up to a maximum amount of six (6) dollars per day, for each day that the
employee, or his dependent, is confined in the hospital as the result of a nonoccu
pational accident or a nonoccupational disease (defined as an accident or a dis
ease for which benefits are not payable under any workmen’s compensation or
occupational disease law ). The maximum amount payable for any one (1) con
tinuous period of confinement shall be one hundred and eighty-six (186) dollars,
i. e., six (6) dollars per day for thirty-one (31) days, except in cases of confine
ment for maternity.
32
COLLECTIVE BARGAINING PROVISIONS
104. Cash Benefits Paid Employee Despite Coverage Under Blue Cross Type Plan2
If you are covered under a “Blue Cross” or “Associated Hospital Plan” and your
hospital bills are paid by such coverage, you may receive the cash benefits under
this plan as if your bill was not so paid.
105. Minimum Com pensate Hospitalization 6 Hours
The required minimum period of hospital confinement is 6 consecutive hours
if such confinement is for emergency care following an injury or for a surgical
operation; otherwise 18 consecutive hours.
Surgical and M edical F ees or S ervice
Surgical or medical benefits may also take the form either of reim
bursement or service. Under medical service plans,*8 an eligible em
ployee may choose any doctor participating in the program. Under
commercial insurance plans, whereby an employee receives cash reim
bursement for medical or surgical treatment, the patient chooses any
physician.
Under a surgical program, the benefits provided may be: (1) Cash
reimbursements of a stipulated maximum for each type of operation;
(2) a service which covers the particular operation, with provisions in
certain circumstances for additional cash payments to the physician
by the employees— the amount to be specified by the surgeon; and (3)
full surgical service, irrespective of cost. Operations due to occupa
tional accidents or illness or compensable under workmen’s compensa
tion laws are usually excluded. Surgical benefits in the event of dis
ability due to pregnancy are sometimes excluded.
Medical benefits, contrasted with surgery, are less frequent. Medi
cal benefits (medical society plans) may be cash or service for home,
office, and hospital care, or (very often) for hospital care only. Some
plans provide for additional fees if the member’s earnings or income
exceeds a certain limit. Under cash reimbursement programs, pay
ments to the employees are usually up to $3 for a home visit and $2 for
an office visit, not exceeding 50 visits per year. This compensation
usually begins with the first visit or treatment in accident cases and
the fourth in illness cases. As in cash surgical programs, special
exclusion or restrictions often apply to medical-care benefits in the
event of disability due to pregnancy.
106. Surgical Benefits : Maximum Amounts According to “ Schedule of Operations.”
Benefits Paid in Maternity Cases to Employees Insured on Date Plan
Becomes Effective, But 9-Month Waiting Period Specified for New
Entrants
The plan will pay an employee a surgical benefit, in the maximum amount of
2 From a descriptive booklet or related material.
8 Blue Shield plans are sponsored by the medical profession for the prepayment of medi
cal and surgical care. Blue Shield plans, which often accompany Blue Cross plans, also
vary in name, generally by State rather than locality. Benefits are service, cash indemnity,
or a combination of both.
HEALTH, INSURANCE, AND PENSIONS
33
one hundred and eighty (180) dollars for an operation performed on him or her
as a result of a nonoccupational accident, or as the result of a nonoccupational
disease (defined as one for which benefits are not payable under any workmen’s
compensation or occupational disease law ).
The amount payable for a particular operation shall be the amount listed in
a “ Schedule of Operations” to be set forth in the employee’s insurance policy
certificate and in the master insurance policy, except that if the actual charge
by the surgeon is less than the charge shown in such “ Schedule o f Operations,”
the amount payable shall be the amount actually charged by the surgeon.
Surgical benefits will be payable whether the operation is performed by the
surgeon in a hospital, in his office, or elsewhere.
In the event that several operations are required by an employee during any
one (1) continuous period of disability, payment will be made for each operation,
except that not more than one hundred and eighty (180) dollars will be paid
for all operations performed during any one (1) continuous period of disability.
Surgical benefits will be payable to insured female employees for obstetrical
operations performed on them during their period of coverage and within the
nine (9) months’ calendar period immediately following termination of their
insurance. Such obstetrical benefits will be immediately effective on all female
employees who become insured on the day the plan becomes effective. Such
obstetrical benefits will not become effective immediately on female employees
who become insured after the day the plan becomes effective: as to them, such
benefits will become effective only when the delivery or other operation occurs
subsequent to the nine (9) months’ calendar period immediately following the
date when such female employees become initially insured.
107. Surgical Benefit, Maximum Differs for Employee and Dependent
Hospitalization benefits of $5 per day plus $25 for hospital fees, surgical
benefits to $150 for employee and $75 for dependents.
108. Medical Expense Benefit: Number of Visits Per Week and Per Disability
Limited; Certain Types of Treatment Excluded
Beginning with the first medical attendance in the case of accident and begin
ning with the fourth medical attendance in the case of sickness, three (3)
dollars for each doctor’s visit at the home or hospital, and two (2) dollars for
medical attendance other than at hospital or home, limited however to three
medical attendances in any 1 week and not more than fifty attendances as the
result of any one disability. No benefits under this subsection shall be payable
for dental work or treatment, nor for eye examination or the fitting of glasses,
nor for X-rays, drugs, dressings or medicines, nor for medical expense incurred
during disability resulting from pregnancy, which term includes resulting child
birth or miscarriage.
109. Medical Expense Benefit: 50 Visits Maximum; No Weekly Limit on Visits;
No Specific Exclusion of Types of Service
Medical expense: $2 for office and hospital visits; $3 for home visits or else
where for treatment by physician starting with the first visit for nonindustrial
accident cases and the fourth visit for sickness, to the extent o f 50 visits.
110. Noncontributory Medical Plan: Medical Treatments, Medicines and Doctor’ s
Fees
The [employer] agrees to continue the medical plan now in effect providing
for medical treatments, medicines and fees for physicians and surgeons. Such
34
COLLECTIVE BARGAINING PROVISIONS
plan shall be maintained at the expense of the [employer] with no employee
contribution for each employee covered by this agreement.
111. Surgical Benefits Not Payable for Operation Performed in a Government
Hospital or Operation for Which Surgeon Makes No Charge2
Nothing in the group policy or in this certificate shall be construed to mean that
benefits [surgical fees] are payable by the insurance company either with respect
to an operation performed in a hospital owned or operated by the United States
Government, or with respect to an operation performed by a surgeon who makes
no charge that the employee is required to pay.
112. Surgical Benefits: Patient Receives Scheduled Benefit Amount Even I f It
Exceeds Doctor's Charge.
Full payment of each amount specified in the [benefit] schedule will be made—
there is no deduction if the amount of the surgical fee is less than the amount
specified in the schedule. Payments hereunder do not regulate any professional
fees.
M a t e r n it y B e n e f it s
Maternity benefits, when included in the benefit program, are usu
ally not a special benefit. Although they usually are a part of the
cash disability, hospitalization, surgical, and/or other medical care,
they may be of different amount, duration, or both. In maternity
cases, weekly cash payments typically cover 6 weeks and hospitaliza
tion is limited to 10,12, or 14 days. In some plans, maternity benefits
include hospital and surgical (obstetrical) aid, but exclude medical
care.
A number of plans authorize no benefits for hospitalization or sur
gery (obstetrics) due to pregnancy existing upon entrance into the
plan or when hospitalization for this purpose occurs within 9 to 12
months o f such entrance. On the other hand, no restriction may be
placed upon employees who become members on the date the plan goes
into effect, or within 31 days thereafter. Since it is customary to
assure continued coverage to employees for conditions existing at the
time insurance terminates, maternity benefit payments such as hospi
talization and surgical benefits are paid for maternity confinement
commencing up to 9 months after insurance terminates. (Other
types of benefits are usually limited to 3 months after termination of
program.)
The maternity benefit restrictions apply either to female employees,
to employees’ wives, or both. In general, differences in duration and
amount of benefits as between employee and dependent are greater and
more frequent for maternity than for other illness. For example,
wives of employees may be excluded but pregnant employees may be
eligible to receive reduced sickness (hospital, medical, or surgical)
benefits. Many instances exist, however, in which little or no differ2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
35
ence appears between employees’ and dependents’ benefits in type,
amount, or duration, and in which a female employee is not disquali
fied from benefits because of absence due to pregnancy.
113. Maternity Benefits Available to Employees9 Wives
Maternity benefits under the insurance policy will be extended to the wife
of an employee.
114. Weekly Cash Sickness and Accident Benefits for Employees Limited to 6
Weeks in Maternity Cases; Other Benefits, IS Weeks
Sickness and accident benefits—$17.50 per week for both male and female
employees. Maximum: 13 weeks for any one continuous period of disability.
Maximum for female disability arising from one pregnancy, 6 weeks. Sickness
benefit is payable from the eighth day of disability; accident benefit is payable
from the first day. (These benefits cover nonoccupational accidents and diseases
not already covered by workmen’s compensation.)
115. Maximum Indemnity for Employee Hospitalization Less for Maternity Than
for Other Cases
The foregoing benefits shall not apply in maternity cases. If hospital con
finement is caused by pregnancy, childbirth, or miscarriage occurring while
maternity coverage is in force, the plan will pay an employee the amount charged
by the hospital up to a maximum payment equal to sixty (60) dollars for any
one pregnancy, regardless o f the number of days of confinement.
Note.—The maximum hospitalization benefit in cases other than maternity is
$6 per day for 31 days.
116. Noncontributory: Maternity Cases Receive Hospitalization Benefits for
Shorter Period Than for Other Illness and Surgical Benefits According to
Schedule, But Same Special Hospital Fees as for Other Illness
Six ($6) dollars daily hospital benefits.
(a) For hospitalization other than maternity cases, from the first day ad
mitted to the hospital, and no hospitalization period shall exceed thirtyone (31) days for each disability period.
(b) For maternity cases, from the first day admitted into the hospital and
no maternity case or cases shall exceed fourteen (14) days.
Twenty-five (25) dollars for special hospital fees.
(a) For X-rays, anaesthetics, operating room and laboratory.
Surgical fees up to one hundred fifty (150) dollars dependent upon nature
of operation.
117. Hospitalization of SI Days for Either Employee or Dependent; for Em
ployee’s Maternity, Maximum Amount Is 14 Times the Daily Benefit
Amount (Plus Miscellaneous E xpenses); for Dependent, 10 Times the
Daily Benefit (Including Miscellaneous Expense) 2
The benefits start with the first day you are a patient in a legally constituted
hospital as a result of nonoccupational injury or sickness. You will be paid the
daily benefit for each day you remain so confined in the hospital up to 31 days.
Should you receive these benefits for less than 31 days, leave the hospital and
again go to a hospital because of the same injury or sickness or for some cause
2 From a descriptive booklet or related material.
COLLECTIVE BARGAINING PROVISIONS
36
related to it, you will be entitled to the daily benefits while you are confined
but only until you have received the balance of the 31 days’ benefits.
H*
sH
sH
H*
*
sfc
When hospital confinement of an employee is due to pregnancy or resulting
childbirth or complications, payment for special hospital services will be made as
outlined above, but daily benefits will be limited to a maximum of 14 days. How
ever, no benefits will be paid for such disability if the pregnancy exists on the
day a female employee becomes insured, unless she becomes insured on or within
31 days after the effective date of the plan.
Benefits for the hospital confinement of one of your dependents (as defined
in this announcement) which commences while you are insured on account o f that
dependent will be payable to you, in the amount of dependent insurance in
dicated in the general description of the plan, under the same conditions as
benefits are payable for your own hospital confinement, except in case of preg
nancy. For hospital confinement of a dependent which is due to pregnancy or
resulting childbirth or complications, the maximum amount payable for both
daily benefits and all special hospital services combined, is 10 times the daily
benefit. These pregnancy benefits on account of employee’s dependents will
not be available for a pregnancy existing on the date the insurance on account
of the person confined became effective.
118. Eligibility for Coverage in Maternity Benefits: 9 Months9 Service for New
Employees; Immediate Coverage for Present Employees. Limit on Ma
ternity Sick Benefits
Sickness and accident.—First day accident, eighth day sickness, limit 13 weeks
any one disability. Maternity limit 6 weeks benefit. Immediate coverage for
present employees; new after 9 months.
Hospital expense.—$5 daily benefit. $50 maximum incidentals reimbursement
(X-rays not excluded). All diseases covered.
Surgical.—Maternity coverage from entry into plan for all present employees;
new employees, after 9 months.
119. Twelve-Months’ Service Prerequisite to Participation in Maternity Benefits
The insurance benefits are not payable for disability, hospital confinement, or
surgical operation resulting from pregnancy, including childbirth or miscarriage,
if such disability, hospital confinement, or surgical operation occurs within 12
months after the date the employee is insured, unless the employee was on the
pay roll on the date o f the receipt of the approval of the National War Labor
Board.
120. Nine-Month Waiting Period for Wives or Future Employee Participants;
Coverage Extended for 9 Months Following Termination of Insurance
The foregoing [hospitalization benefits—employees and dependents] benefits
shall not apply in maternity cases. If hospital confinement is caused by preg
nancy, childbirth, or miscarriage occurring while maternity coverage is in force,
the plan will pay an employee the amount charged by the hospital up to a maxi
mum payment equal to sixty (60) dollars) for any one (1) pregnancy, regardless
of the number of days of confinement. Maternity coverage will become effective
immediately on all female employees who become insured on the day the plan
becomes operative, but will not become effective on dependent wives, or on female
employees insured in the future, until nine (9) calendar months have elapsed
after coverage commences for them. I f the insurance should terminate for any
HEALTH, INSURANCE, AND PENSIONS
37
reason, maternity coverage will not cease until the expiration of the nine (9)
calendar months’ period immediately following thereafter.
N ote.—Maximum hospitalization benefits except in cases o f confinement for
maternity total $186 ($6 per day for 31 days).
121. Lump-Sum Payable Instead of Weekly Sickness and Hospital Benefits for
Pregnancy Ending A fter, But Within 9 Months of, Date of Separation2
In place of the weekly disability and hospitalization benefits, you will receive
a $50 lump-sum payment if pregnancy is ended within 9 months from the date
last employed by an employer, provided on the last date employed you were
eligible under the plan.
122. Service Required for Participation in Plan Longer for Maternity Benefits
Than for Other Benefits
All new employees shall be eligible to receive all of the foregoing benefits upon
completion of thirty (30) days of continuous service provided they are actively
at w ork; if not, on their return to active work, except that such female employees
will be eligible f o r :
{a) Maternity benefits upon completion of nine (9) months of continuous
service with the employer;
(b)
Benefits resulting from injury or disease of the female generative organs,
or operations for such conditions, upon completion o f six (6) months’ continuous
service with the employer.
Eligibility for Participation
E m ployees
Union membership is often required, particularly in plans admin
istered by the union or jointly by union and employer. Some agree
ments stipulate that union membership shall not impair the employee’s
benefit rights to participate in an existing plan (i. e., a plan sponsored,
established, and administered by the employer), or that all employees
are eligible to participate in such a plan, regardless of union
membership.
Under most benefit plans, all permanent employees, or all employees
in the bargaining unit, are eligible to participate. Temporary, parttime, or seasonal employees are generally excluded. I f a plan is
financed in part by employee contributions, participation by an
eligible employee is usually voluntary.
Some plans require a minimum period of service with the employer
(or in the industry, in an area- or industry-wide plan) before em
ployees may participate. Sometimes, service requirements differ for
various types of benefits. Others specify that all employees are
eligible, regardless of length of service. Some agreements, however,
stipulate that employees must have been on the pay roll on a specified
2 From a descriptive booklet or related material.
875403° — 50—
4
38
COLLECTIVE BARGAINING PROVISIONS
day of the reporting month, or must have worked any part of the
month in question. These provisions probably constitute a method
for classifying as eligible those workers who in other contracts are
described as “ active” or “ regular” employees. Such provisions are
usually associated with industry-wide plans (negotiated with an em
ployers’ association) in which union membership is generally one of
the eligibility requirements, and in industries characterized by high
turn-over, seasonal fluctuations in employment, and shifts from shop
to shop within the “market.”
Under industry-wide programs, transfer of coverage from plant to
plant may be permitted; sometimes minimum employment in the
industry or a brief probationary period with a new employer is also
required to reestablish eligibility. This arrangement is known to exist
in some plans but it is rarely set forth in collective bargaining
contracts.
Medical examinations are sometimes required. In certain plans,
however, they are waived for employees who apply within a stated
period after the program becomes effective or after other eligibility
requirements have been met, but are required of those who postpone
exercising their right to join or enter employment afterwards.
Compulsory Versus Optional Participation
123. Contributory: Participation in Plan Is Condition of Employment
Each individual employer shall make participation in the cost of the medical
aid contract by each employee a condition of each employee’s employment and
each employee is to authorize his employer to deduct the difference between $4
per month and the cost of such medical aid contract for such employee from his
pay, and the employer shall pay to the person or association with whom said
contract is entered into the cost thereof, consisting of not to exceed $4 per month
contributed by the employer and the balance above $4 per month contributed by
the employee through a pay deduction as aforesaid. It is understood that the
obligations for said medical coverage up to $4 per month shall be that of the
employer member of the association in each instance and not of the association
itself.
124. Contributory Plan: Participation Optional With Employee
It is agreed that employees shall be given the opportunity to enroll voluntarily
in a plan of group insurance covering life insurance, insurance for death or
dismemberment by accidental means (nonoccupational), and weekly sickness
and accident insurance (nonoccupational) which will be administered by the
company in accordance with a contract issued by the --------- Life Insurance
company— as specifically outlined to all employees in the announcement booklet
entitled “ Group Insurance for Our Employees”—and the premiums for which
will be paid on a joint contributory basis.
125. Contributory: Participation Not To Be Made Condition of Employment
No operator, as a condition of employment will be required to carry any group
insurance plan that may be in force or adopted by the company.
HEALTH, INSURANCE, AND PENSIONS
39
126. Contributory Plan: Employee Must Sign Waiver if He Does Not Wish To
Be Covered2
Group life insurance is available to all employees immediately after three (3)
months' service at which time no medical examination is required.
This insurance is contributory, payments being shared by the company and.
the employee.
Any employee who, when eligible, does not wish to subscribe to this insurance
is required to sign a waiver. If, at a later date, he decided to participate, he
shall be subject to a medical examination at his own expense.
127. Noncontributory: No Obligation To Join Insurance or Welfare Associations
Employees shall not be compelled to join insurance or welfare associations.
Specific Eligibility Requirements— Contributory Plans
128. All Employees Eligible
The present comprehensive group insurance plan, with improvements, schedule
of which is herein reproduced, shall be continued during the life of this agree
ment and shall be made available to all employees after the third month of
employment or reemployment, at a total cost to the employee for his own coverage
of one dollar and fifty cents ($1.50) per month.
129. Permanent Employees With 6 Months' Service
The employer agrees on a basis of division of cost equally between the employer
and each employee to provide the health insurance plan of Greater New York
for the employees covered by this contract. This applies to permanent employees
who have been on the staff not less than 6 months and is not to be considered as
compulsory on the part of the employee.
130. Employee Covered for Any Month in Which He Works 40 Hours
It is understood and agreed that the company will make the above outlined
contribution of seventy-two (72) cents per week toward insurance for only
those employees participating. It is further understood and agreed that with
respect to any participating employee who is paid for forty (40) or more hours
of work in any one (1) calendar month, the company and the participating
employee will each pay their full premium share for that month.
131. Insurance Automatically Reinstated on Thirty-First Day Following Re
employment of Employee Rehired Within 180 Days of Termination or
Lay-Off
If a former employee is rehired, who was eligible for insurance coverage at
the time of the termination of his employment, within 180 days from the date
when his most recent employment with the company was terminated, or within
180 days of. the lay-off, it is agreed that the group sickness and accident insurance
will become automatically effective and in full force on the thirty-first calendar
day after reemployment of such employee.
Specific Eligibility Requirements— Noncontributory Plans
132. Regular Employees Covered by the Agreement
Regular employees covered by this agreement shall be eligible for participation
in the company’s group insurance and group hospitalization and surgical benefit
2 From a descriptive booklet or related material.
40
COLLECTIVE BARGAINING PROVISIONS
plans in accordance with the company’s prevailing policy with respect to all
employees.
133. All Employees to Whom Contract Applies
It is agreed that the existing straignt hospitalization plan (Blue Cross),
which now covers some of the employees shall be immediately extended to cover
all of the employees to whom this contract is applicable, and it is further agreed
that the entire cost of said straight hospitalization plan covering all of said
employees shall be borne entirely by the company.
The term “employee” as used herein shall mean all persons employed in the
plant of the company, except plant protection employees, foremen and office
force.
134. All Active Employees With 90 Days’ Seniority; Laid-Off Employees Excluded
The insurance will apply to all active (not laid off) employees who have ninety
(90) days seniority.
135. Full-Time Employees: fi-Months’ Service for Life Insurance Benefits; 1
Year’s Service for Other Benefits
The employer agrees to procure and maintain in force during the life of this
agreement insurance providing the following benefits for its full time employees:
*
*
♦
♦
♦
♦
*
Employees shall be eligible for benefits hereunder for accidental death and
dismemberment, sickness and accident, hospitalization, surgery and medical
visitation, only if they have been continuously employed by the company for 1
year prior thereto.
N ote.—Life insurance benefits are geared to length of service; the minimum
period of service is 6 months.
136. Association Agreement: Eligibility Requirements for Present, Laid-Off, and
New Employees
The following workers shall be eligible for coverage under the insurance plan:
{a ) All production workers on an employer’s pay roll as of the first day of
the reporting month.
(b) Laid-off employees shall be reported and premiums paid for a period not
exceeding 2 months.
(c) New workers not previously employed in a shop covered by this insurance
plan shall not be covered until the first day of the month following his
employment.
137. Present Employees—Eligible To Participate as of Date Policy Is Issued;
Future Employees—Eligible A fter Working 2 Days Per Week for IS
Consecutive Weeks
The association agrees that such insurance coverage will be purchased for all
such members o f --------- union No. — , employed in the pressroom and on the
pay roll of employers comprising the membership of the association as of the
effective date of this instrument who are still in the employ of members of the
association at the time of the issuance of the policies.
All future employees not on the pay roll of the employers comprising this
association as of [effective date of agreement] shall be eligible for participation
in the sickness and accident disability insurance coverage hereinafter set forth,
HEALTH, INSURANCE, AND PENSIONS
41
after haying been employed by members of the association for a minimum of
2 days each week for a period of 13 consecutive weeks.
138. Minimum Work Requirements for Present and Future Employees
The association agrees that such insurance coverage will be purchased for all
such members of [union] who have worked for a period of 115 8-hour days in
the 6 calendar months immediately preceding the effective date of this agreement
in the bindery and on the pay roll of employers comprising the membership of
the association, and who are still in the employ of members of the association
at the time of the issuance of the policies.
All future employees not on the pay roll of the employers comprising this
association as of July 1, 1947, shall be eligible for participation in the sickness
and accident disability insurance coverage hereinafter set forth after having
been employed by members of the association and worked for a period of 115
8-hour days in the 6 calendar months immediately following employment. Em
ployees to maintain sick leave eligibility, must, at the beginning of each calendar
month, have worked at least 115 8-hour days in the immediately preceding
6 calendar months.
139. Thirty-Day Probationary Period Required of New Employees or Nonunion
Members or Employees Quitting Their Job
New employees who have not worked in the industry or who have not been
members of the union for a period of thirty (30) days shall be required to pass
a probationary period of thirty (30) days before becoming eligible for any of the
social security benefits under th e--------- union insurance program.
The employer shall not be required to carry the insurance for any employee
who has quit his job. An employee who has quit his job shall be required to pass
a probationary period of not more than thirty (30) days before his new em
ployer shall be required to place him on the list of those employees securing
benefits under th e--------- union insurance program.
140. Union Membership in Good Standing Required
Only employees of a contributing employer in the city of St. Louis regardless
of local affiliation who are in good standing in the union shall be eligible to
receive benefits from the fund. Membership in good standing shall remain a
continuing qualification for the enjoyment of benefits.
N ote.—This is a union-shop agreement.
141. Seasonal a/nd Probationary Employees Excluded
This [Blue Cross Hospitalization] plan will cover for each of our regular
employees hospital and surgical attention within the limits of the plan. This
plan does not cover seasonal and probationary employees but only regular
employees.
142. Immediate Maternity Coverage for Present Female Employees; Dependent
Wives and Future Insured Employees Must Wait 9 Months
Maternity coverage will become effective immediately on all female employees
who become insured on the day the plan becomes operative, but will not become
effective on dependent wives, or on female employees insured in the future until
nine (9) calendar months have elapsed after coverage commences for them.
If the insurance should terminate for any reason, maternity coverage will not
cease until the expiration of the nine (9) calendar months* period immediately
following thereafter.
42
COLLECTIVE BARGAINING PROVISIONS
148. Employees Otherwise Eligible Exempted from Medical Examination
Full-time hourly paid employees of the company who become eligible for the
group hospitalization and surgical benefits furnished by the plan will not be
required to take a medical examination as a condition of eligibility.
N ote.— A ll full-time hourly paid employees with 3 months of continuous service
are eligible to participate in the insurance program.
144. Union To Obtain Insurance for Worker's Unable To Qualify, Provided Cost
Does Not Exceed 5 Percent of Usual Insurance Cost
I f for any reason, any worker is ineligible under the ordinary rules and regula
tions of the larger insurance companies writing group insurance or hospitalization
plans for either of them, or in the event such insurance companies refuse to write
the insurance provided herein, then and in that event, the employer shall call
upon the union to furnish an insurance company that will provide the insurance
that the employer has been unable to obtain, at a cost not exceeding 5 percent
above the usual cost for group insurance and group hospitalization plans for
similar groups in the industry and area. In such event, the employer shall not
be liable until such insurance company is furnished.
145. Union Has Sole Right To Make Rules and Regulations for Coverage
Eligibility
The union shall have the exclusive right to adopt and promulgate rules and
regulations with respect to eligibility for insurance benefits and to determine
the period of membership in good standing in the union which shall be a pre
requisite for eligibility to benefits, subject to provisions contained in this
agreement.
D ependents
Dependents are automatically eligible for certain benefits (hospital
ization, surgical, and/or other medical care) in some plans, and in
others only at the employee’s option and provided he makes a finan
cial contribution. Many plans make no provision for dependents’
coverage.
Some employers pay the entire cost of family coverage; often the
employee pays the full premium for such coverage, or makes a partial
contribution, and the employer pays the balance.
Dependents may be entitled to either hospital, surgical, or medical
benefits or to all of them. In a contributory plan, the worker may
have the right to cover his family for one or more of these specific
benefits, although under some plans he must subscribe to the entire
program. Under some plans, coverage is extended to dependents
only if a specified percentage of employees with dependents elect to
do so.
The amounts and duration of benefits frequently are less for the
dependents than for the employee for the same type of benefit, al
though in many cases the benefits are identical. The term “depend
ent” may or may not be defined; it usually includes the wife and un
married minor children (between certain ages) of an employee.
HEALTH, INSURANCE, AND PENSIONS
43
Employees’ and Dependents’ Benefits Provided at Employer’ s Expense
146. Hospital and Surgical Benefits to Defined Dependents at Employer’s Expense
The employer further agrees to extend coverage for daily hospital benefits,
miscellaneous hospital benefits, and surgical expense benefits to the following
dependents of employees:
(a) Male employee: Wife and unmarried children between the ages of two (2)
weeks and eighteen (18) years.
(b) Female employee: Unmarried children between the ages of two (2) weeks
and eighteen (18) years.
The word “ dependent” in this article shall not include any individual who is
insured as an employee by the employer.
14T. Dependents Automatically Covered for Hospitalization and Surgical Bene
fits, Subject to Limitations of Blue Cross Contracts
The company will make available, and pay the expenses of, insurance for its
employees as a group, covering hospitalization, surgical benefits, including mater
nity, on standard Blue Cross contracts. In the case o f single employees, the
coverage will be on an individual basis, and In the case of married employees
the coverage will be on the family basis, and coverage in each case will be to
the extent of and within the limitations of the standard forms of Blue Cross
contract. In the event of any change in status during the contract year, the
employee shall notify the company of such change.
148. Dependents Automatically Covered at Employer’s Expense
The company further agrees to furnish and pay for insurance to the dependents
of the employees o f the company as per agreement with the union.
N ote.—The types of benefits provided dependents is not specified.
149. No Medical Examination for Dependents’ Hospitalization Coverage if En
rolled Within SI Days A fter Dependents Become Eligible for Coverage
Dependents of eligible full-time hourly paid employees of the company will be
eligible for the hospitalization benefits furnished by the plan. For male em
ployees, “ dependents” shall include a wife and unmarried children between the
ages of fourteen (14) days and nineteen (19) years. For female employees,
“dependents” shall include unmarried children between the ages of fourteen
(14) days and nineteen (19) years.
Eligibility of employees’ dependents will not be subject to prior medical exam
ination of such dependents as a condition of eligibility; provided, however, that
an employee with eligible dependents shall make application to the company to
have such dependents covered under the plan not later than thirty-one (31)
calendar days after such dependents become eligible for coverage. If no appli
cation is made to the company by an employee for such purpose, and within
such thirty-one (31) calendar day period, the employee will be required to fur
nish, at his or her expense, satisfactory evidence of the insurability of such
dependents before they shall become eligible for the hospitalization benefits
furnished by the plan.
N ote.— Surgical benefits are provided employees under the plan, but not to
their dependents.
150. Family of Married Man Covered; “Family” Not Defined
The employer agrees to provide for all employees during the term of this
contract the medical, surgical, obstetrical plan now in force with the [insurance
44
COLLECTIVE BARGAINING PROVISIONS
company], including coverage for the family of married employees as therein
provided.
Employees’ Benefits Financed Solely by Employer; Employee Contributes for
His Dependents
151. Employee Pays Cost of Dependents’■ Hospitalisation Benefits; Employer
Pays Cost of Employee Benefits
The cost of the group insurance coverages which have been previously installed,
in accord with the parties’ agreement dated as of November 15, 1945, and as
amended April 1,1947, through th e--------- insurance company and the Blue Cross,
or their equivalent, will during the term of this contract be borne entirely by the
company for eligible employees only. Those employees who wish hospitalization
coverage for other members of their family not employed by the company may
carry it by authorizing the company to deduct the extra cost from their earnings.
152. Blue Cross Coverage for Dependents at Employee’s Option and Cost
The company agrees to purchase for each employee, after 3 months’ con
tinuous employment, individual membership in the associated Hospital Service
of Philadelphia (Blue Cross). Additional membership for family members are
to be purchased by the employee and may be done so as heretofore by pay-roll
deduction.
153. Employee Is Covered Automatically ( and Without Charge) , hut Dependents
Only hy Employee’s Option
The employer will also arrange for the Blue Cross and Medical Service Asso
ciation to make available to employees, at their expense, hospital expense bene
fits for their dependents, for such daily amount as specified for the employee, and
will make such pay-roll deductions for this purpose as such employees may direct
be turned over to the associations.
N ote.—The employer, at his own expense, provides hospital and surgical bene
fits to employees.
154. Dependents Covered Provided 75 Percent of Employees With Dependents
Elect To Participate and Pay Specified Amount
Employees who desire may, at their own expense, arrange for pay-roll de
ductions for hospital and surgical benefits for dependents at seventy (70) cents
per week per employee (45 cents per week for hospital benefits and 25 cents per
week for surgical benefits), provided 75 percent of all employees with eligible
dependents shall elect to participate and authorize the company to make pay-roll
deductions. The term “ dependents” as used herein shall mean a wife and un
married children over three (3) months and under eighteen (18) years of age.
Employees’ Benefits Jointly Financed; Dependents’ Benefits Financed Solely
by Employer
155. Contributory: Dependents Covered by Hospitalisation at Employer’ s Expense
The company agrees to extend at its cost its present employee hospitalization
benefit plan to cover the eligible dependents of those employees who are or who
may become participants in the plan. All other provisions o f the company’s
present Employee hospitalization benefit plan relating to coverage and to division
of costs thereof between the company and the employees shall remain unchanged.
HEALTH, INSURANCE, AND PENSIONS
45
Under the extended coverage provisions of this plan, “employees’ eligible de
pendents” shall mean the wives and unmarried children between ages of fourteen
(14) days and nineteen (19) years.
Both Employees’ and Dependents’ Benefits Jointly Financed
156. Employer Contributes Smaller Proportion of Cost for Family Coverage Than
for Employee Coverage
The company agrees to participate in a group hospitalization and surgical bene
fit insurance plan for employee. A mutually satisfactory insurance company
shall be selected, and the company will pay 60 percent of the premium for each
individual employee’s insurance and 40 percent on family coverage—balance to
be paid by the employee. This section will be effective only if 75 percent of the
eligible employees included in the bargaining unit participate. The company re
serves the right to extend the benefits of such insurance upon the same terms to
employees of the company, not members of the bargaining unit.
157. Employees Must Cover All Dependents or None; Husband of Employee Ex
cluded In Defining Dependents2
For male employees, dependents include only the wife and unmarried children
between the ages of 14 days and 19 years. For female employees, dependents
include only the unmarried children between the ages of 14 days and 19 years.
(Husbands cannot be insured as dependents.) Employees who elect to insure
their dependents must include all eligible dependents.
158. Employee Option of Including Benefits But May Not Cover Dependents
Without Participating H im self2
If you have a dependent or dependents (as defined) you may enroll for per
sonal insurance only or for personal and dependent insurance. However, you may
not enroll for dependent insurance without enrolling for personal insurance.
I f you enroll for dependent insurance, all of your dependents (as defined) will be
included.
159. Employee With Dependents Must Subscribe for Dependents’ Benefits if He
Subscribes H im self2
Your eligible dependents may be included in the plan only if you become in
sured under the plan. * * *. If you have eligible dependents you must sub
scribe for dependent benefits.
160. Dependents Employed by Company or Living Outside Canada and United
States Excluded From Coverage2
The term “dependent” includes only (1) the employee’s wife and (2) the
unmarried children over 14 days and under 19 years of age of a male employee
or of a widowed female employee. However, any such person who is an em
ployee of the company, or who resides outside the United States and Canada, is
not included in the term “ dependent.”
N ote.—This agreement covers a Detroit plant.
161. Dependents Include Spouse and Unmarried Children Living With Employee
Except if Disabled and Confined at Time of Application2
The following persons living with you at your place of residence are eligible
to coverage as dependents provided they are not disabled and confined indoors
2 From a descriptive booklet or related material.
46
COLLECTIVE BARGAINING PROVISIONS
at the time of application: (1) Spouse (husband or w ife), (2) all unmarried
children under 19 years but over 3 months of age. You should enroll fo r cov
erage for your eligible dependents when you enroll for yourself. Employees
who have no eligible dependents when they enroll originally, upon acquiring de
pendents should enroll for coverage for them immediately with the personnel
department or manager.
162. “ Dependent Children” Defined To Include Stepchildren and Foster Children
Regardless of Adoption
Under terms of this policy all adopted or all step and foster children not
legally adopted but entirely dependent upon the employee shall be considered
as the employee’s children.
163. Dependents Include Totally Disabled Husband of Em ployee2
For purposes o f this plan, dependents include your wife and unmarried chil
dren over 3 months but under 18 years of age who are not eligible for the plan
as an employee. Totally disabled husbands o f female employees may also be
included as dependents after they have been wholly dependent upon the employee
for maintenance and support for 3 months. By the payment of the weekly pre
mium an employee insures all such dependents regardless o f the number.
164. Employee’s Husbcmd Excluded From Hospital Plan 2
All o f the protection offered to the men is also available to the women, ex
cept that they cannot include their husbands in the family hospital plan. They
can include their children.
165. W ife and/or Children Eligible Under the Plan as Employees Are Excluded
From Dependents’ Benefits2
This does not apply to a wife or any child who is eligible under the plan as
an employee.
166. Dependents Excluded Because of Disability at Time of Election2
Dependents who are confined to a hospital at the time they are otherwise
eligible cannot be included under the plan until termination of confinement.
167. Amount of Employee Contributions Geared to Earnings, and by Number of
Dependents if Dependents Covered. Company Pays Balance of Cost
Employee’s monthly contribution 2
Class
nployee without Employee with
dependents
one dependent
1
$1.
1.
1.
2.
2
3
4
30
60
90
50
$2.
2.
2.
3.
13
43
73
33
Employee with
two or more
dependents
$2.
2.
3.
3.
67
97
27
87
Your contribution toward the cost of this insurance will be deducted monthly
from your pay check. The entire balance of the cost will be paid by your
company.
The insurance company cannot accept applications for amounts o f insurance
other than those to which you are entitled in accordance with this schedule.
N ote.—Although benefit amounts are listed by “ base monthly earnings,” only
the amount of life insurance varies; the other benefits are uniform in amount.
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
47
Financing the Plan
Financing is either: (1) by contributions by the employer into a
(union) trust fund— the fund providing the benefits; (2) by joint
employer and employee contributions— the employer providing the
benefits; (3) entirely by the employer, who provides the benefits; and
(4) by a combination arrangement, whereby the employer pays the
full cost o f certain benefits and the workers share in the cost of
others— the employer providing the benefits.
A number of plans stipulate that employer or jointly financed bene
fits may be supplemented by others if the participant so desires, but
that the cost of such extra benefits is to be borne by the employee.
Prominent among arrangements of this type are dependents’ benefits.
N oncontributory P lans
Many health and insurance programs under collective bargaining
are entirely employer-financed through purchase of insurance or by
contributions to a fund from which the costs of benefits are defrayed.
In a number of such instances, the employer’s contribution provides
benefits to his employees’ dependents as well, although, in general,
employees are required to pay for benefits for their dependents.
Cost to the employer is sometimes stated as a flat weekly, monthly, or
annual amount for each covered worker; a stipulated contribution for
each hour worked by the employees; a lump sum; or a certain per
centage o f the employer’s pay roll. In the miners’ plan, the em
ployers contribute 20 cents per ton of coal “produced for use or for
sale.” Even when cost is not mentioned, it may have been fixed by
specifying a Blue Cross or Blue Shield plan, or in another way ap
proximated by specifying certain types and amounts of benefits.
Where part of the employer’s work is done by contractors not cov
ered by an agreement with comparable benefits, the employer is some
times responsible for making contributions for employees of his
contractor, as well as for his own employees.
The percentage contribution by the employer applies to total pay
roll in some agreements; in others, the base for calculating the per
centage contributions is carefully defined. The term “wages” may
include or exclude tax deductions, pay-roll deductions, overtime,
bonuses, or vacation pay. The “employee group” is often a limiting
factor; the percentage contribution by the employer is based on wages
of production workers, union members, workers covered by the agree
ment, or employees of the employer and his contractors. I f employee
earnings are the base of calculation, gross earnings are usually speci
fied, emphasized by such phrases as “prior to pay-roll deductions” or
48
COLLECTIVE BARGAINING PROVISIONS
“prior to payment of employer contributions to the fund.” Oc
casionally a statement appears that the employer’s contributions to
the fund are in addition to wages due to workers and are not to be
deemed as wages. A t least one plan, however, is known to provide
for reopening the wage rate clause of the contract if the proposed
benefit plan is found to be impractical. Another provides for a pos
sible reduction in the wage scale if the proposed plan is established.
Based on Percent of Pay Roll
168. Five and One-Half Percent of Total W eekly Pay Roll
It is hereby agreed that the employer commencing with the week beginning
April 28, 1947, and weekly thereafter, will pay to the union an amount equal to
five and one-half (5 % ) percent of its total weekly pay roll of the earnings of
the workers covered by this agreement. The sum thus received by the union
will be applied by it toward a health, welfare, and vacation fund for the members
o f the union employed by the employer.
It is agreed that the employer, by making such payments to the health, wel
fare, and vacation fund shall not be required to make any additional payments
to employees for vacation or any other welfare purposes.
It is agreed that neither the employer nor any individual employee shall have
any right, title, interest or claim against the employer’s contribution toward said
fund or against said fund. The administration of this fund shall be solely under
the supervision of the union in accordance with the rules and regulations
adopted by it.
169. Percent of “ Gross Wages Earned” by Employee Members of Union
Now, therefore, the employer hereby agrees to forward to t h e --------- interna
tional union social security department, [location] each and every month, in
advance, between the first and fifth day of every month, a sum equaling three (3)
percent of the gross wages earned by his employee-members of this union for
transmittal to the insurance carrier(s). The said sum of three (3) percent
shall be calculated on the basis of the total aggregate wages received by said
employee members during the preceding calendar month.
170. Percent of Gross Earnings of Union Employees. Gross Earnings Include
Cost of Living Bonus, Overtime, Holiday Pay, But Not Vacation Pay
Commencing with the first pay-roll week following the vacation period of July
1946, employer shall pay into the industry health fund three-fourths of one
(% of 1) percent of the gross earnings of all o f union employees who are members
o f the Philadelphia Joint Board. These earnings will include the cost of living
bonus, overtime, if any, as well as holidays with pay, but will not include any
vacation payments.
171. Percent of Total Covered Weekly Pay Roll, Including Overtime
Each employer, member of the association, agrees:
(a) To pay weekly to th e --------- union, local — , four (4) percent of its total
weekly pay roll, including overtime, of all its employees covered by this agree
ment (except cutters) towards the vacation, health, and welfare fund established
and maintained by said union for various benefits of its members.
(b) To pay weekly to th e --------- cutters union, local — , four (4) percent of
its total weekly pay roll, including overtime, of all its cutters towards a vacation,
HEALTH, INSURANCE, AND PENSIONS
49
health, and welfare fund established and maintained or to be established and
maintained by said union for various benefits o f its members.
172. Percent of W eekly Pay Roll, Excluding Overtime
Each of the employers shall pay each month, as hereinafter provided, for the
benefit of each o f its production employees, a sum not to exceed 3*4 percent of
the regular 35-hour weekly pay roll of the said employees for 4 y3 weeks. No
overtime shall be included in the computation of the weekly pay roll.
173. Percent of Pay Roll, Excluding Vacation Pay, Vacation Bonus, and Service
men's Bonus
The company agrees during the term of this contract to make an expenditure
of a sum equal to 2 percent of the pay roll of the employees involved for the
purpose of providing certain insurance and other benefits for each full-time
employee as hereinafter set out.
In determining the pay roll upon which the 2 percent above referred to is to
be calculated, vacation pay, vacation bonus, and servicemen’s bonus shall be
excluded.
174. Percent of Weekly Wages (Before Deductions for Taxes) of Inside Workers
and Employees of His Contractors
Each member of the association shall continue to be obligated until March 30,
1947, to pay to the joint board o f --------- Union of Greater New York for the
health and welfare fund a sum equal to 3% percent of the weekly wages (before
deductions for taxes) of all of the workers covered by this agreement employed
in his inside shop, if he maintains one, and in the shops of his contractors, except
cutters.
Beginning with March 31, 1947, the amount of the aforesaid payments shall
be increased to 4% percent, the additional 1 percent to be allocated towards the
payment of retirement benefits, and each member of the association shall be
obligated to pay the same to the joint board o f --------- Union o f Greater New
York for the health and welfare fund.
175. Cost of Living Adjustments Excluded in Determining Employer Contributions
The cost of living adjustment granted by this supplemental agreement and
the cost of living adjustment heretofore granted November 4, 1946, shall be
exempt from the manufacturer’s contribution to the amalgamated insurance
and retirement funds.
176. Employer Contributes Percent of Gross Pay Roll of Workers Employed by
Exclusive Contractors in City and Percent of “ BUI” of Contractors Outside
City
It is hereby agreed that all employers, members of the association, will pay
weekly to the union the sums hereinafter referred to, which sums are to be used
by the union for the said health insurance fund. No employer shall have any
right, title, or interest in said fund or the administration thereof; neither shall
any individual employee have any right, title, interest, or claim against said
fund, or contribution thereto, except as may be provided by the bylaws of the
union. The payments are as follow s:
(a) Four and one-half (4 % ) percent weekly of their gross pay roll for the
workers covered by this agreement, and four and one-half (4% ) percent of the
gross pay roll of the workers covered by this agreement employed by their
exclusive contractors in the city o f --------- .
(b) Three and three-eighths (3 % ) percent of the entire bill of contractors
(not merely pay roll of contractors), who are either employed by them outside
COLLECTIVE BARGAINING PROVISIONS
50
of the city of --------- or who are not their exclusive contractors in the city
o f --------- .
177. Two Percent of Total Labor Cost of Products Manufactured by Employer
or for His Account. “Labor Cost” Defined. Payments Made Quarterly
to Union Fund
The employer shall pay, on the tenth day following the end of each calendar
quarter year during the term of this agreement, to the benefit fund committee
of the union, established pursuant to the constitution of the benefit fund of the
union, adopted April 27, 1940, and as subsequently amended, 2 percent of the
total labor cost of all garments manufactured by him or for his account during
the preceding calendar quarter year. The term “labor cost” as used in this
paragraph means the wages due to all employees of the employer, including union,
nonunion, permanent and temporary employees employed by him in inside shops
and engaged in occupations enumerated in clause ------ , plus 2 percent of 80
per cent of the amounts paid by or owing from the employer to any and all
contract shops whatever on bills for work done for the employer, including all
work done by union, nonunion, permanent, or temporary employees in contract
shops, except the term “labor cost” shall not include accessories as defined and
enumerated in paragraph 7 (b) 9 hereof. The fund herein referred to is the
one commonly known as the “ sick benefit fund” of the union.
178. I f Net Cost A fter Dividends Is Less Than 2 Percent of Pay Roll, Difference
Used To Purchase Additional Benefits
I f the net cost after dividends of such insurance for the eligible employees is
less than 2 percent of the total pay roll of the eligible employees during the
period subsequent to March 1, 1946, the difference will be used for the purchase
of additional benefits to be mutually agreed upon. Any amounts required by
law to be paid by the employer for similar insurance benefits will be deducted
from the amount to which it is obligated hereunder and the insurance provided
for herein modified accordingly.
179. Union May Temporarily Reduce or Waive Percentage of Pay Roll Required
of Employer if Fund Shows Surplus Exceeding Reasonable Needs
Should the insurance fund acquire a surplus in excess of the reasonable and
adequate needs to carry out the purposes of this fund and its administration as
well as to maintain suitable reserves, the union may reduce or waive for tem
porary periods the percentage of the pay roll which the employer is required to
pay hereunder, the original percentage is to be restored, however, if it shall be
determined by the union that the need therefor has arisen.
Flat Amount
180. Flat Amount Per Hour for Each Hour Worked by Employees Covered by
Agreement
Commencing with June 1, 1948, the corporation will set aside in a fund the
sum of 5 cents per hour for each hour actually worked by any employee covered
by the agreement between the parties dated June 23, 1947, to be used for the
purposes o f providing hospitalization, sick and accident benefits, prepaid medical
service, and life insurance.
9 Accessories
include composition belts, hats, embroideries, tucking, etc.
HEALTH, INSURANCE, AND PENSIONS
51
181. Flat Weekly Amount Per Employee
The employer will pay monthly, within ten (10) days after the expiration of
any calendar month, to th e --------- employees trust fund, which shall be admin
istered and the principal and income whereof shall be used as hereinafter pro
vided, the sum of $1.75 per employee per week.
182. Specified Monthly Amount fo r Union Members in “Regular E m ploy” Irre
spective of Days Worked Per Week
In the event that the employer shall procure the aforesaid insurance in group
form either by a policy covering 50 or more members o f the union employed by
him or by membership in a bona fide trade association, whose members are under
collective agreement with the union, then and in htat event the employer shall
pay each month as hereinafter provided for the account and benefit of each of the
union members in his regular employ the sum of $7 to the trustees hereinafter
named. (A regular employee is one regularly on the employer’s pay roll irrespec
tive of the number of days worked per week.)
N ote.—This agreement provides that the employer shall employ none but union
members in good standing.
183. Cost Limited to Over-all Cost of 2 Cents Per Man-Hour or Specified Amount
Per Month Per Man, Whichever is Greater
It is further agreed that the costs of such insurance for all the employees
covered by this agreement will be paid for by the corporation, said cost being
limited to an over-all cost of two (2) cents per man-hour, but shall be in addition
to corporation-paid insurance costs at the present time. The total hours to be
applied to this cost of two (2) cents shall be the average humber of hours
worked at the plants for the past 6 months, or three dollars* and forty-six cents
($3.46) per month per man, whichever is the greater.
184. Fitted Monthly Amount Per “Active Working E m p lo y eeIn clu d in g Em
ployees on Sick Leave
The present insurance plan shall be continued in operation without change until
July 1,1948. Thereafter, the company agrees to contribute the full premium of
six (6) dollars per month per active working employee (including employees on
sick leave) beginning July 1,1948, for a group insurance plan for the life of the
contract.
185. Employer to Contribute Flat Annual Sum to Benefit Association
The company agrees to make an annual contribution o f seven thousand
(7.000) dollars to the [name of company] mutual benefit association.
Other Arrangements
186. Royalty on Production
During the life of this agreement, there shall be paid into such fund by each
operator signatory hereto the sum of twenty (20) cents per ton of two thousand
(2.000) pounds on each ton of coal produced for use or for sale.
187. Employer to Pay Entire Premium for Specified Types and Amounts of Benefits
The company will provide and pay the cost of an employee group insurance plan
which will be substantially as follow s:
(1) A death benefit o f one thousand (1,000) dollars.
(2) Sickness and accident benefits of thirteen (13) weeks at fifteen (15) .dollars
per week with a seven (7) day waiting period.
COLLECTIVE BARGAINING PROVISIONS
52
(3) A hospitalization plan.
(4) Surgical benefits of one hundred fifty (150) dollars.
The insurance will apply to all active (not laid off) employees who have ninety
(90) days seniority.
188. Employer Pays Full Cost of Hospitalisation if Employees Pay Full Cost of
Medical-Surgical Benefits; Otherwise, Employer Pays 60 Percent of Hos
pitalisation Cost
To provide hospital service and the medical-surgical under the New Jersey plan
on the following basis:
For those employees who purchase the medical-surgical plan at their own
expense, the company agrees to supply at its expense, the hospital service plan.
For all others the company agrees to pay 60 percent o f the hospital plan, where
the employee agrees to pay the balance of 40 percent.
189. Employee and Dependents Receive Specified Benefits Without Charge; Em
ployee Contributes for Surgical Benefits, Amount Varying With Humber of
Dependents
Noncontributory insurance 2
Daily hospital
room and board benefits
employee and dependents
Life insurance employee
only
$1,000
Maximum for special
hospital charges and
ambulance fees
employee and dependents
$6
$60
The above benefits are provided without cost to you—the premiums being paid by
your employer.
Contributory insurance
You may insure yourself and your eligible dependents for the surgical expense
benefits by payment of the monthly premium shown below :
Maximum surgical benefit,
employee and dependents
$150
Your monthly premium
Employee only____________________________________ $0.50
Employee and wife or husband------------------ ---------- 1.65
Employee, wife or husband and children____________ 1.95
Employee (without wife or husband) and children_1.45
I f you have more than one dependent eligible under the Definition of Depend
ents * * * and wish to insure any dependent for surgical expense benefits,
you must insure them all.
190. Maximum Annual Employer Contribution Specified
The employer agrees to install a hospitalization insurance plan with the Asso
ciated Hospital Service of New York, known as the Blue Cross insurance plan,
for the benefit of all o f its employees who are either members o f a basic crew or
qualified employees, and their families, as soon as practicable. The employer
shall, in no event, be required to contribute more than four thousand (4,000) dollars
per annum to the cost of such a plan.
191. Employer Contributes Different Amounts for Different Groups of Workers
The parties hereto agree that the fund shall be continued, and that for the
entire term of this agreement, the members of the association will, in accordance
with the provisions hereof, make contributions equivalent to five and one-half
(5% ) percent of their gross weekly pay roll to all workers in the crafts enumerated
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
53
in paragraph — o f the 1940 agreement between the parties, and to three (3) per
cent o f the gross weekly pay roll to all workers in those crafts enumerated in
paragraph — o f this agreement, whether such workers are employed in an inside
shop of a member o f the association or in the shops of contractors for members of
the association. By the phrases “gross weekly pay roll” and “ total gross pay roll”
is meant, and the terms are hereby defined to be, the total wages due and paid
each week, before deductions are made therefrom for Federal and State social
security and unemployment contributions and withholding taxes, to workers in
the crafts enumerated in paragraph — hereof, and who are employed either in the
inside shop of a member o f the association, and/or in the shop of such member’s
contractor.
However, contributions made by the members of the association to the fund
covering those crafts first recognized in this agreement, in paragraph — hereof,
shall not commence until June 1, 1949.
192. Employer To Make Maximum Specified Additional Contribution on Request
of Trustees of Fund
I f the trustees o f th e--------- insurance fund in any month request an additional
payment not in excess o f % o f 1 percent o f the employer’s total weekly pay roll
paid to employees covered by this agreement, the employer agrees to make such
additional contribution provided he regularly contributes to the fund, and the
request is not made for a month for which the employer has already made
payment.
193. Company1s Contribution Increased to Specified Maximum if Hospitalization
Rates Increase
The company agrees to contribute $2.50 per month for the medical care and
hospitalization of each employee in the employ o f the company 90 days or m ore;
this money to be paid to an association selected by the company and the employees.
The company further agrees that in the event of an increase in hospitalization
rates to $3.50, the company will increase its contribution to $3 per employee, and
that this shall be the limit of the company’s contribution. To receive this benefit
the employee must either be working or on sick leave and under the care of the
hospital association selected under this clause.
194. Industry Plan—Employer Contributions to Fund Waived if He Provides
Benefits Equal to Other Employers Contributing to Fund
The employer agrees to pay monthly to the --------- insurance fund for the
duration of this agreement an amount equal to one and three-fourths (1 % ) per
cent of his total gross weekly pay roll paid to employees covered by this agree
ment unless he provides at least the same benefits for his employees covered by
this agreement as are provided by the members of th e --------- insurance fund.
195. Employer's Contributions Do Not Constitute Wages
The payments to the health, welfare, and retirement funds, as hereinabove
provided, shall not constitute or be deemed wages due to the workers.
196. Industry Fund. I f Proposed Benefit Plan Proves Impractical Wage-Rate
Clause of Contract May Be Reopened
It is hereby agreed that employers signatory to this agreement shall immedi
ately work out a program to provide the following minimum group insurance^
hospitalization, surgical and medical program for employees covered by this
agreement to become effective August 1,1949.
875403°— 50------ 5
54
COLLECTIVE BARGAINING PROVISIONS
If, after thorough investigation, it is found impractical to overcome the many
problems of applying such a program on a multiple employer basis, the union
shall be granted a wage rate reopening on August 1,1949. It is understood that
the provisions of Section X X shall not apply should either party reopen this
agreement as provided above.
197. Wage Scale May Be Reduced if Proposed Benefit Plan Is Established
The committee o f the joint trade board shall study the hospitalization and
insurance plan suggested by the union and other such plans and shall report
thereon to the joint trade board. Thereafter, but only if both the association
and the union shall so agree on behalf of their respective members, this agreement
may be amended during the term hereof to provide for a hospitalization and
insurance plan and a corresponding reduction in the wage scale hereof.
198. Union Recognizes Cost of Plan to Employer and Accepts Plan in Lieu of
Additional Hourly Wage Adjustment
During the period that this agreement and all o f its terms and provisions are in
effect, the company agrees to purchase and maintain, without cost or charge
to employees who are included within the coverage of this agreement, an insurance
policy or policies providing such employees with group hospitalization and sur
gical benefits insurance, subject to the restrictions and conditions of such in
surance policy or policies and the terms and provisions of schedule 2, attached
hereto [group hospitalization and surgical insurance].
The union acknowledges and agrees that the net cost to the company of the
commitment assumed by it under Section 1 of this Article is one and one-half
(1 % ) cents per hour of employment for the effective period of this agreement,
expressed as a plant-wide average monetary equivalent in relation to the em
ployees who are included within the coverage of this agreement; and the union
further acknowledges and agrees that the assumption by the company of such cost
shall be in lieu of any hourly wage adjustment in excess of that stated in Section
1, Article X II, title “Wages,” of this agreement.
N ote.— Section 1 of Article X II provides a general increase of 10 cents per hour
for each hour worked by an employee on incentive-rated operations and 15 cents
for each hour worked on unrated operations.
C o n t r ib u t o r y P la n s
Under some jointly financed plans, all employees who choose to
participate pay uniform amounts. Under others, employee contri
butions are graduated according to earnings or occupational groups
and benefits are proportionate. Employees who elect to provide cover
age for their dependents pay additional amounts.
Employees may be required to share costs equally with the employer.
In other instances, the employer bears a greater share. The respective
contributions may be specifically stated, usually as a percentage of
wages or the employee’s contribution is stated as a definite amount and
the employer is obligated to contribute the balance necessary to
maintain the plan.
HEALTH, INSURANCE, AND PENSIONS
55
Costs Shared Equally
199. Amount of Contribution Not Specified; Benefits Listed
The company will offer to the employees a group insurance plan as follow s:
Amounts
Life insurance________________________________________________ $1,000
Accident and sickness insurance (per week)___________________
15
(1st day for accident; 8th day for sickness; 13 weeks benefits
at $15 per week)
The company agrees to pay one-half of the cost of such group insurance.
200. Cost Not To Exceed Specified Amount to Employees and Employer
The cost of this insurance will be not more than approximately 61 cents each
2-week pay day to each employee and to the company.
201. Equal Contributions But Employer Assumes Administrative Costs
The company agrees to contribute toward the purchase of group insurance.
The plan agreed upon shall be administered by the company and the company
will assume the cost of such administration. The company will contribute
seventy-two (72) cents per week per each employee participating. Each partici
pating employee shall contribute seventy-two (72) cents per week and authorize
in writing deduction of such amount from his or her wages.
Employer Contribution Greater Than Employees
202. Two-thirds by Employer; One-third by Employee
The parties agree to put into effect and to maintain a plan o f group insurance.
The cost shall be borne two-thirds (% ) by the company and one-third (% ) by
the participating employees.
203. Two-thirds by Employer; One-third Payment by Employee Graduated Ac
cording to Weekly Earnings
The parties agree to put into effect and to maintain a plan of group insurance.
The cost shall be borne two-thirds (% ) by the company and one-third (% ) by
the participating employees. Said plan of group insurance shall provide the
following benefits:
Classification
Hourly paid employees earning
weekly (40 hours):
A. Less than $25 _ ________
B. $25 but less than $35____
C. $35 but less than $45____
D. $45 and over___ __ _____
Life
insurance
$750
750
750
750
Accidental
death and
dismemberment
$1, 000
1, 000
1, 000
1, 000
Compensation for nonindustrial accident to begin first day.
sickness to begin eighth day.
Weekly
accident
sickness
benefits
$10.
14.
17.
21.
50
00
50
00
Monthly
cost per
employee
$0.
.
.
.
70
78
86
94
Compensation for
204. Sixty-Forty Ratio, Maximum Monthly Premium Per Employee Specified
The present insurance plan covering mill employees shall be continued in
effect. Premiums are not to exceed $1.20 per month for each employee. The
employee will pay 40 percent of the premium and the corporation will pay 60
percent
COLLECTIVE BARGAINING PROVISIONS
56
Fixed Employee Contribution; Employer Pays Difference
205. Fixed Employee Contribution; Employer Pays Remainder
The company will continue to provide insurance at low rates for employees
who are eligible and who desire to take advantage thereof.
Through th e --------- society of the [insurance company] in the amount of one
thousand (1,000) dollars will be available at a cost of sixty (60) cents per
month and nonoccupational accidental death and dismemberment insurance
in the amount of one thousand (1,000) dollars will be available (up to the time
an employee has attained his seventieth anniversary o f his birth or until his
retirement) at a cost of ten (10) cents per month making a total o f seventy
(70) cents per month to the employee as the company pays the balance. The
above insurance will be governed by the terms and conditions of the policy.
Fixed Employer Contribution; Employee Pays Difference
206. Fixed Employer Contributions; TJnion and Participating Employees Liable
for Annual Deficit. Surplus and Dividends Used for Additional Coverage
and/or Increased Benefits
The company agrees to purchase in the name of the company from a reputable
company as much insurance as possible from a fund created by the use of 7
cents per hour granted each employee for this purpose under the terms o f .the
agreement; and the company further agrees that any amount not spent from
this fund and any amounts received in the form of dividends from an experience
rating shall be used in the next contract year for the purchase of additional
coverage and/or increased benefits.
*
*
*
*
*
*
*
I f the insurance at the end of the year exceeds 7 cents an hour, the union as
well as the men who are participating for these benefits will be liable for the
difference.
207. Employer Pays 10 Percent of Gross Premium
T h e --------- company will pay ten (10) percent of the gross premium on any of
the above contracts.
N ote.— The contracts referred to are “ packages” which are offered to employ
ees according to their family status. The benefits in each “ package” include
life and accidental death and dismemberment, daily hospital and “in hospital”
medical expense and surgical benefits.
I nsurance D ividends and R ate R ebates
A n employer who bears the total cost o f a policy is usually allowed
to retain all dividend payments or rate rebates, although in some in
stances dividends or refunds are used to provide additional insurance.
I f insurance is jointly financed, such accumulations are often passed
on to employees in reduced premiums, additional benefits, etc. In
one such case, the dividends are administered by a joint employerunion board; in another, dividends are prorated between the employer
and employees on the basis of contributions made; and, in a third,
they are used by the employer to pay the full premium for employees
during incapacity from sickness or accident.
HEALTH, INSURANCE, AND PENSIONS
57
Noncontributory Plans
208. Noncontributory Plan—Employer Retains Dividends or Refunds
It is understood and agreed by the union and the company that any dividends
or refunds paid by the insurance company with respect to insurance premiums
shall belong to the company.
209. Noncontributory Plan—Association Contract—Dividends or Refunds (Less
Expenses Incurred) “Ratably Divided” Among Member Firms
Any and all dividends or refunds received by the said trustees shall be
ratably divided and promptly paid to each of the employer firms, members of the
association, less any expenses which may be incurred.
210. Noncontributory Plan—Receipt of Dividends No Reason for Employer To
Increase Expenditures or Coverage
The actual cost to the company of administering the plan shall be a charge
against the 2 percent above referred to. The providing of the insurance and
•benefits referred to in this paragraph shall be subject to any rules or regula
tions o f the Blue Cross or other organization or organizations providing the
insurance or benefits. The company shall be under no obligation to increase
its expenditure or the coverages by reason of any dividends or similar distribu
tions which it may receive under any insurance policies taken out by it under
this paragraph.
211. Noncontributory Plan—Dividends or Refunds Used for Premium Rate In
creases or Trustees’ Expenses. Surplus, if Any, Used fo r Additional
Benefits
Any and all dividends or refunds received by the said trustees shall be re
tained for the purpose of payment of any increases in rates o f premium which
may be required to continue the existing insurance in force for a subsequent
year or years, and any surplus remaining thereafter shall be used by the trustees
for the purchase o f additional insurance benefits as may be approved by the union.
Dividends may also be used for the payment of any expenses of the trustees which
may be incurred under section — of the trust indenture heretofore executed.
Contributory Plans
212. Contributory Plan—Employer Selects Insurer and Retains Dividends
The employer agrees to maintain a group insurance plan under which each
employee will be entitled at his option to participate to the extent as provided in
the schedule of benefits hereto annexed, marked “A.”
The employer agrees to pay fifty (50) percent of the gross premiums of such
group insurance and each employee who elects to participate therein shall pay
his proportionate share o f the fifty (50) percent o f the gross premiums to be
borne by all participating employees. Each participating employee’s share of
the premium shall be deducted from his pay at his individual direction to the
employer in writing. It is understood and agreed that all dividends on the
entire group insurance shall be payable to and shall be retained by the employer.
The employer shall choose the insurance company with which the group insur
ance is placed.
58
COLLECTIVE BARGAINING PROVISIONS
213. Contributory Plan—Dividends Held in Trust for 1 Y ear; Used To Pay Full
Premiums for Disabled Employees During Incapacity From Sickness and
Accident
Any dividends earned and received on insurance purchased under this pro
vision shall be held in trust by the company for a period of one (1) year from
the date the insurance policy first becomes effective, after which such moneys
are to be expended for the purpose of paying the full premium for employees
who, while still on the pay roll of the company, are incapacitated from work
through sickness or accident. Such trust fund shall be so used until exhausted
in the payment of such premiums in the order in which cases of incapacity arise.
Decision as to what shall be done with any balance in such trust fund that
may be on hand as of March 30, 1950, shall be open to negotiations on or after
said date.
214. Contributory Plan—Dividends Prorated Between Employer and Employees
According to Contribution
The company will continue in effect a plan for voluntary group insurance and
will pay not less than one-half of the cost. The employees will pay the balanceof the premium.
It is agreed that when dividends are earned and paid under the policy that
such dividends as are applicable to the proportion of the premium paid by the
employees, will be returned to them.
215. Contributory Plan—Dividends Administered by Joint
Committee
Union-Employer
Any moneys refunded as dividends from the health and accident plan are to
be administered by a joint committee of the union and the company, such com
mittee to be set up immediately.
216. Contributory Plan—Dividends Used To Reduce Premiums
This entire program is operated as a mutual participating contract for all
members who will share in whatever dividends are earned. Plans at present
time anticipate payment of dividends in reduced premiums as dividends are
earned under the contract.
U n d e r w r it in g
the
P lan
and
S e l e c t in g
the
Insurer
Many of the plans which are union-sponsored (often on an industryor area-wide basis) provide for the establishment o f a fund which is
either jointly or union administered. Employers’ contributions are
paid into the fund, which either makes benefit payments directly or
through insurance purchased by the fund from a commercial carrier.
One union, the Amalgamated Clothing Workers of America (C IO ),
has established its own insurance company.
Under other union-created plans, as well as plans originally spon
sored by employers, the employer provides the benefits through a group
insurance policy obtained from a commercial carrier, or through a
contract with a Blue Cross or medical service organization. Such
HEALTH, INSURANCE, AND PENSIONS
59
group insurance programs occur both in contributory and noncontribu
tory plans.
Employer contributions may be used to purchase insurance directly
from an insurance company, or they may be tendered as periodic cash
payments to a trust fund, the union, or a mutual benefit association.
Under certain circumstances, self-insurance (direct payment of the
employee’s claim) is permitted to employers who “elect out” of the
four State-administered disability insurance programs which allow
private plans as an alternative (see p. 2 ). I f the contributions are
turned over to the union, the latter is responsible for providing the
benefits either through the purchase of an insurance policy or by direct
payment from the fund established.
I t is frequently stipulated that the policy is to be underwritten by
a “reputable,” “ reliable,” or “ established” company. Sometimes the
insurance company is specified by name, or the employer chooses from
a given list. Still other contracts require a policy that is acceptable
to the union or trustees.
217. Insurance Company Designated by Name
The company will inaugurate a plan, to he underwritten by the [insurance
com pany]; covering group life insurance, nonoccupational accident and sickness
benefits, hospital care, and such other benefits as are provided by the plan.
218. Employer To Purchase Insurance From One of Five Listed Companies;
Union May Propose Other Insurance Companies With Lower Rates But
Employer's Decision Final
The employer agrees to install a group insurance policy covering its employees
not later than March 1,1946. The cost of this policy including present insurance
will not exceed 2 percent of the employer’s pay roll and will be borne by the
employer. This policy will be written with one of the following insurance com
panies: [names of five companies]. The union may propose an insurance com
pany other than those mentioned above if it feels that the rates of the proposed
carrier are lower, but ultimate discretion in the choice o f the carrier will rest
solely with the employer.
219. Employer Purchases Insurance From Payments to Fund for Which He Is
Responsible. Employer to Furnish Union With Quarterly Reports
The employer agrees to set aside in a fund with no cost on the part of the em
ployees the sum o f $1.20 per week or $5.20 per month maximum for all employees
who are in the service o f the employer three (3) months. The employer will pay
out o f this fund the premium each month to th e --------- insurance company who
will insure the employees for group life, sick, and accident weekly benefits, surgical
and medical care which policies shall become part of this agreement. The em
ployer will be responsible for this fund and agrees to furnish the union representa
tive each 3 months, a statement of moneys put in the fund, employees insured, and
balance in fund. It is understood that this maximum amount will be paid in the
fund by the employer for all employees who are eligible while they are on the
pay roll o f the company, also employees who are laid off temporarily by the
company not to exceed one (1) month.
60
COLLECTIVE BARGAINING PROVISIONS
220. Insurance Company To Be Approved 'by Board of Trustees
In the event that the [board of trustees] enters into a contract for the issuance
of a group insurance policy by an insurance company, under which any one or
more of the benefits hereinabove described are payable, the premium for such
insurance policy shall be payable out of the payments paid by the employer as
above described. Such contract shall be entered into only with an accredited and
qualified insurance company approved by the board.
221. Selection of Carrier By Union A fter Joint Study of B ids; Plan Financed and
Administered By Company
A list of benefits desired will be submitted to various insurance companies by the
union and bids will be solicited from same. There will be a joint study of the
plans submitted by the various insurance companies in an effort to obtain the
greatest possible benefits for the above premium. It is understood, however, the
selection and retention of the insurance plan and carrier will be in the sole dis
cretion o f the union.
*
*
*
*
*
*
*
The group insurance plan will be administered by the company.
N ote.—This is a noncontributory plan.
222. Change in Carrier Only by Mutual Consent
The company agrees to maintain, without cost to employees the present group
insurance and hospitalization plan, with the same company unless a better policy
is available with another company at no higher cost. Any such change to be
made by mutual consent of the company and the union.
223. Employer May Pay Premiums to Insurance Company Directly or Through
Association
That premium payments shall be made by the employer directly or through the
association to the insurance company selected.
224. Employer To Pay Benefits or Purchase Insurance
The employer shall, at its own expense, during the life of this agreement,
pay the benefits hereinafter described to the employees covered by this agreement
or shall procure and maintain in force an insurance policy from a reputable and
established insurance company providing the same benefits.
225. Employer May Self-Insure
The insurance specified in this Article VII hereof shall be provided by a policy
or policies written by a reputable insurance company or companies, but this
shall be without prejudice to the right of the [employer] to provide such insur
ance through its own insurance department, in case the [employer] elects so to do.
226. Employer Not To Operate Plan But To Insure With Reputable Insurance
Company
It is ‘Understood that the employer will not operate this insurance benefit plan,
but will obtain a policy from a reputable and established insurance company,
which will administer the benefits described above.
227. No Reference To Specific Insurance Company
The employer agrees to procure and maintain in force during the life of this
agreement an insurance policy providing benefits to employees who have been in
the employ of the employer for one (1) year or more in accordance with the
schedule which follows.
HEALTH, INSURANCE, AND PENSIONS
61
228. Insurance Company Selected Must Cover All Employees, Either in Single
Policy or Separate Policies for Union and Nonunion Employees
That the insurance company to be selected must be one which will issue either
a single policy to all employees of employer or separate policies both to nonunion
and union employees of employer containing similar benefits at similar costs.
D is p o s it io n
of
F unds
on
T e r m in a t io n
of
P lan
A number of methods are prescribed for the disposition of funds in
the event a plan which involves the creation of a fund is terminated.
A ny moneys left may either be: (1) held for payment of benefits to
eligible employees; (2) refunded to employer and employees; (3)
retained by the union for welfare purposes; (4) distributed “as re
quired by la w ;” or (5) used “within the general purposes for which
the plan was created.” One agreement provides that the equivalent
of premium payments shall be added equally to employees’ hourly rates
if the plan is found to be illegal or if insurance coverage cannot be
obtained.
229. Distribution of Surplus Funds A fter Dissolution as Required by Law.
Trustees Not Liable for Unintentional Errors or Omissions
In the event of the final dissolution, abandonment, or termination of this
agreement, or any renewal thereof, by operation of law or otherwise, the surplus
funds (after allowance for expenses of dissolution or other termination) avail
able for distribution shall be held in trust and accounted for and distributed as
required by law.
The trustee-directors and the corporation shall not be required to do more than
to act in their discretion and to use their best efforts to determine the basis and
details of any plan for such distribution and to carry out such plan. They shall
not be held liable for unintentional errors or omissions concerned with their
acts and proceedings.
230. Fund Divided Between Employer and Union A fter Withholding Enough to
Cover Commitments
The relief plan covered by this agreement is in full effect for the duration of
this contract. It may be terminated by either party after expiration of this
contract, in which event the money held by the treasurer will be divided into two
equal parts and returned after withholding enough to cover any commitments
already made by the board.
231. Union To Use Fund for Same General Purpose for Which It Was Created
In the event that the agreement between the union and the employer pertain
ing to the health benefit fund shall not be renewed upon its expiration, then the
money remaining in the fund shall be expended by the union on an equitable basis
within the general purposes for which the fund was created.
232. Union To Use Fund To Purchase Whatever Type, Amount, and Period of
Insurance It Will Provide
If, at the expiration of this agreement, no further provisions are made for the
continuance of the insurance fund and there remains surplus funds on deposit,
the union shall use such funds for the purpose of providing to its members in
62
COLLECTIVE BARGAINING PROVISIONS
good standing insurance benefits for whatever type, amount, and period the funds
will permit.
233. Options Open to Trustees for Disposition of Health Center on Termination
of Contract
Upon the expiration of this agreement, or any renewal thereof, if no provision
is mutually made for the continuance of the health center, then the board of
trustees shall have the discretion to determine whether they shall operate the
center insofar as funds may be available or may be obtained from any source,
or in their sole discretion they may liquidate, sell, assign, or transfer the property,
equipment, or other assets belonging to the health center and transfer said prop
erty and assets to any other institution, public or private, in the city o f --------which will utilize the said funds or property for the purpose of carrying out,
insofar as may be possible, the furnishing of clinical medical care to the members
o f the [union] similar to the manner provided in this agreement.
234. Noncontributory Sick Benefit Fund: Benefits Continued Until Fund E x
hausted if Plan Terminated. I f New Plan Negotiated, Surplus Applied to
Employer’ s Contribution
At the end of the contract period any money still in the fund will be disposed
o f as follow s:
I f the same or an alternative sick benefit plan is agreed upon in a new contract,
such money shall apply against the company’s contribution to such a plan.
I f no plan is agreed upon for any reason, then benefits shall continue to be
paid as above to employees on the pay roll at the end of the contract period until
the balance of the fund remaining at the end of the contract period is expended.
N ote.— T he fund referred to is a sick benefit fund towards which the employer
contributes each month during the contract period 1 dollar per month for each
employee in the bargaining unit. The fund is administered by a joint employerunion committee with equal representation.
235. Dismissal Pay Benefits Substituted as Death Benefit in Event of Termination
of Insurance Plan
In the event of the discontinuance of the present group insurance plan of the
[employer] during the life of this agreement the dismissal pay schedule will
apply in the payment of death benefits to the party or parties designated by the
employee, or to his estate. It is understood and agreed that so long as the group
insurance plan is in effect the dismissal pay schedule will not apply as a death
benefit payment under any circumstances.
236. I f Plan Illegal or Insurance Unobtainable, Equivalent o f Present Premiums
Added to Hourly Rates
I f the above described welfare program should be determined to be illegal,
or if for any other reason such insurance, coverage or plans cannot be obtained,
then it is agreed by the company and the union that the equivalent o f present
premium payments shall be added equally to the hourly rate o f each employee.
O t h e r F in a n c in g A r r a n g e m e n t s
237. Company Provides Basic Amount of Life Insurance; Additional Amounts
Available at Specified Monthly Premium, Remainder Paid by Company
The company agrees, on or before September 1, 1947, to make available to all
active employees having seniority, the opportunity of purchasing life insurance
HEALTH, INSURANCE, AND PENSIONS
63
protection which shall supplement the life insurance protection now provided to
all employees at the company’s sole expense.
Employees may purchase such additional life insurance, which will be offered
under a standard plan, at a monthly premium rate of sixty (60) cents per $1,000
principal of protection, with the understanding that all costs in excess thereof
shall be assumed and paid for by the company.
The union and the company agree to promptly appoint committees fo r the
purpose of effectuating and presenting this plan to the employees.
238. Employer Provides Surgical Benefits; Employer and Employee Contribute
Jointly for Life Insurance, Sickness and Accident Benefits; and Employee
Provides Medical Benefits
Life, Sickness, Accidental, and Surgical.—The company will procure and main
tain in force during the life of this agreement an insurance policy providing
the benefits set forth below for those employees who signify in writing and au
thorize the company to deduct from their pay each week as a partial contribution.
The insurance benefits are briefly as follow s:
(a ) Life insurance, $1,000;
(b) Accidental death, $1,000;
(c) Sickness and accident benefits in accordance with the following
schedule * * *.
*
*
*
*
*
*
*
Hospitalization.— The company will bear 85 cents per month o f the cost of this
hospitalization insurance and will deduct whatever additional sums are neces
sary to meet the total cost from the employee’s pay.
Surgical.— The present total cost for this surgical insurance coverage of 75
cents per month will be borne by the company.
Medical Benefits.— The company, upon receipt of written authorization from
an employee, will deduct from his pay a sufficient amount to cover the total cost
of this medical insurance.
239. Employer Pays Full Hospitalization Premium for Single Employees, or for
Married Employees Who Do Not Choose To Cover Dependents; Pays Half
the Premium for Married Employees With Dependents
The company will provide for each employee hospitalization insurance and
will pay the full amount of the premium for single employees or married em
ployees electing coverage only for themselves and one half of the amount of
the premium for married employees with dependents. The balance the first
pay roll of each month. All new employees will be eligible for participation
immediately upon completion of three (3) months’ service with the company
(subject to regulations of the insurance company’s plan).
240. Blue Shield Benefits at Employer’ s Expense to Employees Subscribing to
Blue Cross Hospitalization Plan
All union employees who take out and pay for membership in the Blue Cross
will be furnished the same membership in the Blue Shield at the company’s
expense.
241. Benefits Without Cost to Employee With 8 or More Years’ Service, Contribu
tory for Those With Less Service
The company will make available to employees o f less than three (3) years’
service participation in group life, sickness, and accident insurance at a con
tributory cost to the employee of twenty-five (25) cents per week. All employees
64
COLLECTIVE BARGAINING PROVISIONS
employed for three (3) years or more shall receive such insurance without cost
to the employee.
242. Employer To Provide Insurance Equivalent to That Already Provided by
Union Insurance Plan
The employer agrees to maintain during the term of this agreement insurance
coverage for its employees with respect to life, accident, health, hospital, and
other benefit insurance with its own carriers, substantially equal to the insurance
presently furnished by the [union] insurance fund to employees under its own
insurance plan.
243. Contributory Plan—Deductions Made Subsequently for Weeks in Which No
Employee Deduction Made. Employee Contributions In Advance Required
for Leave Exceeding SO Days
In situations where the weekly deduction is missed, such deduction will be
made up from subsequent pays. For leaves of absence in excess of 30 days, pro
visions should be made at the beginning of the leave for such payments.
A dministration
Methods of underwriting and administering employee-benefit plans
show many variations. Frequently, the details are not included in
collective bargaining agreements. Where a trust fund is set up, the
method o f underwriting, control, and day-to-day administration may
be stated in a separate document— the trust agreement or indenture—
which may or may not be attached to the collective bargaining agree
ment. Moreover, the trustees or other administrative body usually
promulgates rules and regulations which are seldom attached to the
agreement.
I f employer contributions go into a special fund, as is customary
in association or industry plans, there is a problem of control or
administration of the fund. This is different from administration of
the plan itse lf; the latter involves claims for benefits, benefit payments,
handling of complaints, and similar matters. The two administrative
functions may be handled by one or two agencies. A distinction is
also made between the over-all policy-making administrative agent
and the agent responsible for day-to-day operation. Over-all policy
is decided by the trustees with or without the approval of an advisory
committee. The purchase of insurance, or handling of fund invest
ments, may be by an executive officer under the direction of the
trustees. The collection of employer contributions is also the trustees’
function. In addition, there is the claims handling— also under the
supervision o f an executive officer, under the direction of the trustees.
Employer payments may be paid into a special fund or directly as
premiums to an insurance company. I f a separate trust fund has been
established, the money may be used to pay benefits directly to covered
employees, to purchase commercial or Blue Cross insurance policies,
HEALTH, INSURANCE, AND PENSIONS
65
or to finance a full-fledged medical service program. Each type in
volves a variation in administrative functions.
No single method of control or administration of a health and in
surance plan is provided, but four basic methods stand out clearly:
(1) by the union and employer join tly; (2) by a tripartite agency,
including representatives of the union and the employer and a neutral
person— a board of trustees; or (3) solely by the union, or the em
ployer; and (4) the union, the employer, or the union and employer
jointly, together with an insurance company which assumes respon
sibility for payment, usually the adjudication of benefit claims. A d
ministrative methods do not necessarily follow the nature of the
financing, i. e., whether the employer alone contributes or whether
employer and employees jointly share the cost of the benefits. These
basis methods of administration— union, employer, or jointly— appear
both in contributory and noncontributory plans.10
Generally, when the plan is financed by direct employer payments
to an insurance company, the insurance company is the administrator,
although the union and employer frequently share in this responsi
bility. For example, a joint committee of union and company repre
sentatives may review all claims. Under some insurance-company
plans all claims are filed through the union. This may be equally
true if the trustees of a fund decide on a commercial insurance plan.
I f an employer adopts self-insurance, he usually keeps the necessary
records, handles the funds, and administers the claims, sometimes
through a joint union-management committee.
Some plans which appear from the contract to be administered
solely by the union or employer may actually be administered by the
insurance company, if the benefits are insured. The employer is
sometimes specifically prohibited from operating the plan himself, and
is required to purchase a policy under which the benefits will be ad
ministered by the insurance company. In contracts of the latter
type, the employer may stipulate that his obligation will be fully dis
charged by procurement of the policy and payment of the premiums;
his liability is limited to the premium payments. The presumption
is that the insurance company alone will be responsible for adminis
tering the plan, i. e., for handling claims and determining what types
of illness are covered by the policy and whether the employees are
entitled to benefits.
Joint administration may involve all that the term implies, with
rules and regulations both formulated and carried out by a committee
or board of trustees. Some of these plans are modified by including
10 See sec. 302 of the Labor Management Relations Act of 1947 for regulations affecting
the administration of welfare trust funds to which employers contribute.
COLLECTIVE BARGAINING PROVISIONS
66
an advisory council which has jurisdiction over such matters as types
and amounts of benefits to be included and eligibility for coverage or
benefit payments. Further division of responsibility is exemplified
by one plan in which the types and amounts of benefits payable are
prescribed by the joint council but the union alone makes regulations
and administers the fund accordingly.
N o n c o n t r i b u t o r y I n d iv id u a l C o m p a n y P l a n s
244. Fund To Conform With Requirements of the Toft-Hartley Act
Social security fund.— The company agrees to terminate the present security
trust fund, effective May 31, 1948, and to establish on June 1, 1948, a social
security fund, which shall be administered by a joint board of company and
union trustees with equal representation to both parties. The details concerning
the establishment and administration of the fund shall be worked out between
the company and union on ratification of this agreement. The joint board shall
immediately thereafter prepare plans, which shall include hospitalization, sick
and accident benefits, prepaid medical service, and life insurance, the premiums
for which to be paid out of the social security fund. The fund shall conform to
the requirements of the Labor Management Relations Act of 1947. The board
may seek the advice and help of the social security department of the [union]
and of such other agencies as it may see fit in its work.
N ote.— See footnote 10, p. 65.
245. Contract Excludes Employer from Administration on Ground That Plan
Was Established Prior to January 1, 19^6 (an Exemption Provided by
Taft-Hartley Act)
Effective with the workweek beginning December 15, 1947, the employer agrees
to pay to the union, an amount equivalent to four and one-half (4*4) percent of
its total weekly pay roll of all its employees covered by this agreement toward a
health and welfare fund maintained by the union and established prior to
January 1, 1946, for the purpose of providing its members with health and wel
fare and recreation benefits and contributions toward the vacation bene
fits * * *. The aforesaid fund is to be maintained and administered by the
union in accordance with the bylaws and rules and regulations adopted by the
union for that purpose. The employer shall have no right, title, or interest in
and to said fund or the administration thereof. No individual worker shall have
under this paragraph of the agreement, any right, title, or interest in, or claims
against the employer’s payments towards the health and welfare fund, or against
said fund, except as may be provided by the union’s bylaws or rules and regulations
for said fund.
N ote.— Certain plans established prior to January 1, 1946 are exempt from the
requirement of Section 302 of the Labor Management Relations Act o f 1947 that
employers participate in administering employee welfare funds of specified types.
246. Parties To Establish Rules and Regulations by Mutual Agreement
The company and the union may establish by mutual agreement rules and
regulations, or issue interpretations to govern the administration of the above
[benefit] plans, from time to time, and such rules, regulations and interpretations
shall be binding on the employee or employees as fully as though set forth herein.
HEALTH, INSURANCE, AND PENSIONS
67
247. Employer To Issue Rules and Regulations To Carry Out Purpose of Plan
Reasonable rules and regulations shall be promulgated by the [employer] to
make effective the intent and purpose of the insurance provisions of this agree
ment.
248. Joint Insurance Committee To Administer Benefits
There shall be established an insurance committee composed o f representatives
of the employer and the union. It shall be the duty of this committee to meet
regularly to effect a more efficient and effective administration of the social
benefits provided for in this agreement.
C o n t r i b u t o r y I n d iv id u a l C o m p a n y P l a n s
249. Employer Administered: Joint Conferences on Plan at Request of Either
Party
The administration of the plan by the company shall continue as hereto
fore : * * * At the request of either party, a meeting between representatives
of the union and the company shall be held to explore any problems which may
have arisen with regard to the administration of the plan.
250. Cost of Operation and Responsibility for Administration Vested in Company
The company agrees, for so long as business conditions permit and the required
number of its employees with three (3) months or more of service so elect, to
continue in effect its present liberal plan of group life, weekly indemnity, hospital,
and surgical insurance; provided, however, that the gross premium cost of all
benefits thereunder shall be divided equally between the company and the em
ployee, and that the cost of operation of the plan will be assumed by and the full
responsibility of its administration shall be vested in the company; and provided,
further, that this agreement shall be subject to renegotiation in the event of
subsequent enactment of any law or regulation which would provide similar
benefits through the medium of a pay-roll tax.
251. Joint Union-Employer Administration of Contributory Plan. Insurance
Carrier To Be Mutually Satisfactory
The employer agrees to maintain a contributory group insurance plan which
will provide employees with life insurance, hospital expense insurance, surgical
reimbursement and nonoccupational accident and health insurance. The specific
benefits shall be as follow s: * * *.
The group insurance plan is to be underwritten by an insurance company,
mutually satisfactory to the union and the employer. The employer and the
union are to be equally represented in the installation of these benefits and in
matters relating to the administration of the group insurance plan, over which
the employer has control under the terms of the insurance contract. The em
ployer shall apply 50 percent of the gross premiums. New employees shall be
eligible to join the plan after sixty (60) calendar days of employment.
252. Managed by Company Relief Association Which Includes Union Officers on
Board of Directors
The entire insurance program is managed by the [company] relief association,
which association is managed by thirteen directors elected by the members of
the association. Approximately half of the directors are officers of lo c a l-----of the [union]. [The] relief association performs certain administrative func
tions in the operation of the hospitalization and insurance program.
COLLECTIVE BARGAINING PROVISIONS
68
JNo n c o n t r i b u t o r y A
s s o c ia t io n o r
In du stry P lans
253. Union Administers Fund; Neither Employer Nor Employees Have Right,
Title, or Claim to Fund
It is hereby agreed that the employer, commencing with the week beginning
April 28, 1947, and weekly thereafter, will pay to the union an amount equal to
five and one-half (5 % ) percent o f its total weekly pay roll of the earnings of
the workers covered by this agreement. The sum thus received by the union
will be applied by it toward a health, welfare, and vacation fund for the members
of the union employed by the employer.
It is agreed that the employer, by making such payments to the health, welfare,
and vacation fund shall not be required to make any additional payments to
employees for vacation or any other welfare purposes.
It is agreed that neither the employer nor any individual employee shall have
any right, title, interest, or claim against the employer’s contribution towards
said fund or against said fund. The administration of this fund shall be solely
under the supervision of the union in accordance with the rules and regulations
adopted by it.
254. Self-Insured Plan: Union Pays Benefits, Operating and Administrative
Expenses, Directly From Fund
The parties further agreed that the [union] shall also have the right to adopt
rules and regulations in connection with health and retirement benefits, including
eligibility of members of the union therefor, and to determine the date when
payment of health and vacation and retirement benefits shall commence. It
shall also have the right to set aside sufficient reserves for ensuing years, in
cluding payment o f health, vacation, and retirement benefits to the members o f
the union beyond the expiration date of this agreement. It shall have the sole
right to make payments to the members of the union o f the health benefits and
retirement benefits and contributions toward the vacation benefits and to pay
the operating and administrative expenses of each type of benefit of the health
and welfare fund.
255. Union Purchases Policies From Union Fund to Which Employers Contribute
Now, therefore, the employer hereby agrees to forward to the --------- union
social security department, each and every month, in advance, between the first
and fifth day of every month, a sum equaling three (3) percent of the gross wages
earned by his employee-members of this union for transmittal to the insurance
carrier(s). The said sum of three (3) percent shall be calculated on the basis
of the total aggregate wages received by said employee members during the
preceding calendar month.
The above-described sum of three (3) percent shall be forwarded by the em
ployer to th e --------- international union, social security fund, as above described,
for transmittal by the said --------- international union social security department
to the insurance company (s) providing the benefits herein stated.
In consideration of said money forwarded to t h e --------- international union
social security department as here provided, the --------- international social
security department agrees to procure such insurance coverage which will extend,
beginning the date the employer’s first contribution is due as set forth in the
preceding paragraph, the benefits herein stated to said employee-members in
accordance with the terms and provisions of the insurance policy or policies as
herein stated and with the rules and bylaws under which said fund is ad
ministered.
HEALTH, INSURANCE, AND PENSIONS
69
256. Union Adopts Rules and Administers Over-all Fund; Joint Board Deter
mines Types and Amounts of Health Benefits
With respect to the health benefits under the health, welfare, and vacation
fund, a council of six (6) persons is hereby established, to be composed of three
(3) representatives o f the association and three (3) representatives of the union.
The council, which may be presided over by the impartial chairman, shall have
full power and authority to determine the types and amounts of health benefits
which members of the union shall receive, not exceeding, however, the total
amount allocated by the union from the fund for health benefits.
Subject to the provisions of this article, the health, welfare, and vacation fund
shall be maintained and administered by the union in accordance with bylaws
or rules and regulations to be adopted by the union for that purpose. The union
will furnish the association with copies of all bylaws or rules and regulations and
any amendments and modifications thereof in any manner relating to the fund.
257. Joint Union-Association Committee To Administer Health Service
The employer shall, with each weekly check-off remittance, pay a sum equal to
5 cents for each worker employed during that week toward the maintenance of
a health service; said health service to be jointly controlled by an industry
committee consisting of equal representation of the union and the associations.
258. Joint Committee To Establish and Administer Insurance Fund
It is agreed that a joint committee representing the employers and the em
ployees represented by the [union] shall be selected to establish and govern a
joint insurance fund.
259. Trust Fund Administered Jointly by Employers and Union Through Trustees
Appointed by Each
The company agrees to pay the sum of $2.40 monthly for each working union
employee on the pay roll of the company as of the first day of each month, from
January 1, 1948, to December 1, 1948, inclusive. Remittances are due on the
first day of each month and are to be paid into an insurance fund created and
set up pursuant to a Trust Indenture made and entered into by the companies
named in the Trust Indenture, the union and trustees named therein, which Trust
Indenture is attached and marked “ appendix A ” (as extended by agreement at
tached hereto and marked “ appendix B” and “ appendix C” ) is hereby made part
of this article with the same full force and effect as if fully stated herein.
The company, in conjunction with the other companies named in the Trust
Indenture, and the union, respectively, agree to promptly name from time to
time the trustees to be nominated by them.
260. Policies Issued in Name of Trustees Designated by Employer and Union
I f employer Joins Association Contracting With Union Association
Trustees To Represent Employer
Irrespective of the form of insurance provided by the employer, whether it
be group or otherwise, the policy shall be issued in any event in the name of
trustees, two of whom shall be designated by the employer and two of whom
shall be designated by the union. Should the employer, however, be or become
a member of a bona fide trade association, whose members are under collective
agreement with the union, the trustees designated by said association shall be
deemed the employer’s trustees and representatives on said board of trustees.
875403'
70
COLLECTIVE BARGAINING PROVISIONS
261. Fund Administered by Tripartite Board— Six Union Representatives, Two
Employers, and Impartial Chairman
The fund shall be administered by a board of trustees, hereinafter referred
to as the “ board,” consisting of nine (9) members, to be constituted as follow s:
A. Any party agreeable to both parties o f this agreement, shall act as
chairman.
B. The employer contributions to the fund shall designate two (2) representa
tives as members of the board. The chairman of the board shall call a meeting
of the employers at which their representative members of the board shall be
elected, and shall supervise and authenticate such election.
C. The union shall designate from among its members six (6) representatives
who will act as members of the board.
The members of the board shall hold office for a period of 1 year from July 1.
262. Tripartite Committee To Establish and Maintain Plan
It shall be the duty of the said social security commission (hereinafter
referred to as the commission) to administer such funds in the following manner:
First, for the execution of the contract existing at this time between the associa
tion and the union covering vacations and vacation pay for the workers of mem
bers of this association which contract is dated November 27, 1944; Second, for
the setting up and maintaining of a health clinic and medical benefits for
workers of members of the association, covered by this contract; Third, for the
ultimate establishment of retirement benefits for aged workers of members of the
Association, the basis for which retirement and eligibility for such benefits shall
be established by the commission. In the event'that legislation shall subsequently
be enacted covering the matter of above described benefits, then the contracting
parties shall agree as to the extent to which the funds shall be used to augment
the benefits to be derived from such legislation, or if the legislation is mandatory,
then the extent to which the assessment shall be modified in accordance with the
situation as it then exists.
N ote.— The commission is tripartite, consisting of 2 representatives o f the
association, 2 o f the union, and an impartial chairman.
268.
Administered Jointly by Union and Association With Disputes,Referred to
Impartial Chairman Under the Agreement
{a) The employer shall pay weekly directly to local No. — an amount equal
to one (1) percent of the total wages paid to the workers, said fund to be used
by local No. — to pay sick and death benefits to the workers.
(b) The employer shall pay weekly directly to local No. — an amount equal
to one (1) percent of the total wages paid to the workers, said fund to be used
by local No. — as a welfare fund for the workers who are in the employ of each
individual employer.
(c) The employer shall pay weekly directly to local No. — an amount equal
to one (1) percent of the total wages paid to the workers, said fund to be used
by local No. — as a pension or retirement fund.
(d) Local No. — shall furnish the employer with an annual audit o f the
funds referred to in subdivisions “ (a ),” “ (b ),” and “ ( c ) ” of this paragraph and
a statement o f the results o f which shall be available for inspection at the office
of the local.
(e) Payments to be made by the employer in accordance with subdivisions
“ (a ),” “ (&),” and “ ( c ) ” o f this paragraph shall not constitute or be deemed to
be wages o f the employees. No individual employee shall have any right, title,
HEALTH, INSURANCE, AND PENSIONS
71
or interest in or to or claim against said funds, except as may be prescribed by
the bylaws or rules and regulations governing the same.
(f )
The funds referred, to in subdivisions “ (a ),” “ (b ),” and “ ( c ) ” of this
paragraph shall be administered jointly by local No. — and the [association]
and, in the event o f a deadlock as to the administration o f such funds, such
dispute shall be decided by the impartial chairman.
264. Joint Administration; Disputes to Neutral Party
The employer shall contribute two (2) dollars per week for each employee,
member of the union, to a welfare fund created for the welfare of the members
of the union employed by the employer and such contribution shall be made
directly to the union at the end of each week. The employer and the union
shall be equally represented in the administration of such funds as provided
by law and in the event they cannot agree on any matter in connection with
the administration of such fund they shall appoint a neutral third party to
bring about an agreement which shall be binding upon the parties.
265. Health and Welfare Fund Administered in Accordance With Terms of
Separate Trust Agreement
During the terms of this agreement the employers shall contribute and pay
weekly to the named trustee (or t h e --------- workers' health and welfare fund)
under the aforesaid trust agreement, a sum of money equivalent to 3 percent
of the total weekly pay roll including overtime (before deductions for taxes) of
the employer's workers covered by this agreement. Such moneys so paid and
contributed shall be used and administered as a health and welfare fund in
accordance with the terms and provisions of the said trust agreement.
266. Trust Agreement Regulating Welfare Fund Incorporated Into Collective
Bargaining Agreement
All provisions concerning the establishment, maintenance, and administration
of the fund are contained in a separate agreement and declaration of trust which
is being executed simultaneously with the execution of this agreement, and which
is hereby incorporated into this agreement as though fully set forth herein.
267. Association Contract: Employer Sends Contributions to Associations for
Transmittal to Union
The employer shall pay to the union an amount equivalent to five (5) percent
of the weekly wages of the employees covered by this agreement for the period
commencing October 1,1946 and terminating October 1,1947. Checks in payment
of these amounts shall be made payable to “ [union] insurance fund;” payment
to be made to such fund for the purpose of purchasing group insurance to
provide for such employees' death benefits, hospital benefits, sick benefits, surgical
benefits, and disability benefits, and no part of such fund shall be used for any
other purpose. The employer agrees to make payment of said sum in the manner
above provided to t h e --------- association within six (6) days after the first of
each month to cover wages paid during the preceding calendar month; such
checks, together with the statement on the form provided for by the union shall be
forwarded to t h e --------- association, which shall within five (5) days there
after turn over such checks, together with the statement furnished by said
employer, to the union. No financial obligation is to be assumed by the asso
ciation by reason of such collection, except to turn over such money received by
the association from the employers to the union.
72
COLLECTIVE BARGAINING PROVISIONS
B e n e f it C l a i m
and
P a y m e n t P rocedure
Details on the filing, processing, and payment of benefit claims are
rarely written into union agreements. Such information is usually
given in the booklets, handbooks, or pamphlets especially printed for
distribution to participating members. In large measure, the type
of control and administration of a plan usually determine the pro
cedure for making claims and obtaining benefits. Claims may, there
fore, be filed by the employee with the employer, the union, the ad
ministering board, or the insurance company. The union frequently
offers assistance in filling out the forms. Application forms and in
structions are available at the offices o f the employer, the union, or
both.
Benefits are paid to the employee by the employer, the insurance
company, the union, or the trustees of the fund.
268. Benefits Paid Directly From Fund by Joint Committee
The fund will be administered by a committee composed of representatives
of the union and the company in equal numbers. Payments from the fund will
be made only by check jointly signed by two (2) representatives, one to be
designated by the union and the other by the company. This fund shall be used
by the committee so designated for the relief of employees who are prevented
from working because of any sickness or injury not covered by the compensation
act. Specific rules shall be drawn up, and may be changed from time to time,
by the committee created above in accordance with the following principles:
Payments shall be made from the fund toward compensation of employees for
wages lost and expenses incurred upon proof satisfying the committee that the
employee is prevented from working because of sickness or injury as above
described. The specific amount of payments may be varied from time to time
depending upon the amount of money on deposit in the bank and expected future
receipts. However, at any one time payments may be varied by the committee
as to individual employees based only on hardship incurred.
269. XJnion-Management Committee on Claims
It is agreed that the company shall provide a life, accidental death, health,
accident, medical, hospital, and surgical plan for its employees. Also, there
shall be a union-management committee on claims established. The benefits
and details of this plan are covered in a separate memorandum furnished by
the company to the union.
270. Claims Paid Through Employer's Office. Reports on Claims Furnished
Union by Employer and Insurance Company
The employer agrees that the policy or policies which he takes out will provide
for the payment of all claims to members of the union through the employer’s
office, and will notify the union of such payments. The employer agrees to furnish
regularly a complete monthly report to the union in conformity with a procedure
established by the union on reporting forms provided by the union. The carrier
company also must agree to supply the union with all information on claims which
the union may require for the study and evaluation o f the insurance program.
HEALTH, INSURANCE, AND PENSIONS
73
271. Insurance Carrier Solely Responsible for Determining Claims
The insurance company shall be solely responsible for determining when and
how much compensation shall be paid for all such illnesses and accidents and
the members of the association shall not be responsible or liable in any amount
where the insurance company rejects or refuses to pay all or any part o f a claim.
272. Industry Area Plan— Claims Procedure: (1) Employee Notifies Union;
(2) Union Notifies Insurance Company; (3) Insurance Company Mails
Proper Form s; (4) Forms Sent to Insurance Company. Twenty-Day
Time Limit on Filing Claims2
I f you become disabled, notify your union office immediately. Be sure to give
your name, social security number, home address and name of employer. The
union office will notify the insurance company. The insurance company will mail
a claim check blank to you at your home address, with full instructions.
I f it is not physically possible for you to advise the union office, a member
of your family, a fellow-employee or union member may do so for you, but you
should make sure that the union is notified.
In order to receive the weekly benefits, you and your doctor must complete a
claim blank which should then be returned to the home office of the insurance
company.
I f you become confined to a hospital give the union the information described
above and also the name of the hospital. Your claim for hospital benefits will be
considered separately and a different type claim blank is mailed by the insurance
company to your home address, unless you request it be mailed to the hospital.
To receive the hospital benefits you and the hospital must complete a claim
blank which is then returned to the insurance company.
If you do not give the necessary complete information, the payment of your
benefits will be delayed. Therefore, follow all instructions carefully.
*
*
*
*
*
*
*
In case of death of an insured member, his beneficiary should notify the
member’s union office. The union office will notify the insurance company. The
insurance company will furnish the beneficiary with a death claim form with all
instructions. If the beneficiary so desires, the union office will be glad to help
in the completion of these forms which must then be returned to the insurance
company in order that final disposition of the claim may be made.
The insurance company requires that it be notified not later than 20 days after
the date of an accident, the start of a sickness or the date you enter a hospital.
Extension of time will be allowed if it is shown that it was not reasonably
possible for you to give the notice inside the 20 days’ limit.
For your own benefit and in order to receive the payments promptly it is
advisable to notify your union office during the first week you are disabled.
R ecourse
to
G r ie v a n c e P r o c e d u r e
and/ or
A r b it r a t io n
Disputes concerning the administration or operation of a benefit
program or particularly the individual claims for benefits may be
handled either through the regular grievance and arbitration ma
chinery or through a procedure especially devised for the purpose.
Relatively few agreements indicate the method of settlement, although
some specifically bar the use of the regular grievance procedure.
2 From a descriptive booklet or related material.
74
COLLECTIVE BARGAINING PROVISIONS
273. Grievances Under Plan Handled Outside Regular Grievance Procedure
Any problems, complaints, or grievances arising under or concerning group
insurance shall not be subject to or handled under the grievance or arbitration
provisions of the agreement, but will be handled in accordance with separate
rules.
274. Disputes Over Fund Administration Not Subject to Regular Grievance Pro
cedure But to Arbitration Directly. Arbitrator Appointed by Court if
Not Selected Within 20 Days
In case a disagreement shall arise over the administration of the sick benefit
fund the same shall not be subject to the grievance procedure set forth in
article------ , but the company and the union will attempt to agree upon an impar
tial umpire. I f within twenty (20) days of conditions occurring which give rise
to the dispute no umpire is agreed upon, either party may petition the District
Court of the United States for the Northern District of [state] to appoint an
impartial umpire. The decision of the umpire so agreed upon or appointed by
the District Court shall be binding on all concerned.
275. Dispute Over Claims Subject to Arbitration on Basis of Prevailing Group
Insurance Practice in the Industry
Any dispute over a claim for any of the foregoing benefits may be treated as a
grievance by either the employer or the union and shall be decided under the
arbitration provisions of article X X II on the basis o f the prevailing practice
in providing group insurance benefits of this character in t h e --------- industry.
This arbitration clause shall not be used by the employer to reduce its present
benefits.
276. Dispute Over Claims To Be Settled by Representatives o f Union, Employer,
And Insurance Carrier
The group insurance plan will be administered by the company. Should any
dispute arise regarding claims, the administration or functioning of the insurance
plan, each party will name two representatives to meet with representatives of
the insurance carrier to resolve such dispute.
277. No Recourse by Employee if Benefit Claim Rejected
Rejected claimant shall have no recourse against the joint insurance fund, the
joint committee, the union, the employer, or any of the officers’ agents or members
of any of the above.
N ote.—This plan is administered by a joint employer-union committee.
278. Union Committee May Make Recommendations on Disputed Claims to In
surance Company
The company and the union agree that any disputed claims arising from this
insurance program shall be submitted to a committee composed of two representa
tives from the union and the decision of this committee on such claims shall be
recommended to the insurance company.
279. Issues Pertaining to Benefits Subject to Bargaining But Not to Arbitration.
Company President’s Decision Final
This agreement shall in no way affect the status of employees under employee
benefit plans such as retirement plan, group life insurance plan, and death bene
fits plan for annuitants. It is agreed by the union and the company that issues
pertaining to such subjects as the above may be bargained through the procedure
HEALTH, INSURANCE, AND PENSIONS
75
set forth above except that neither party shall have the right to have any such
issue arbitrated. If any such issue is not settled as the result of negotiations
between the parties, the union shall have the right to refer such issue to the
president of the company whose decision shall be final and binding upon both
parties. The company will advise the union of any changes in any such plans
before making an announcement of same to members represented by the union.
280. Joint Committee To Hear Disputes But Have No Authority To Govern
Premiums or Payments
The insurance committee shall consist of two (2) members appointed by the
corporation and two (2) members appointed by the Union. This committee
shall hear all disputes concerning group insurance and hospitalization but have
no authority to govern premiums or payments.
Em ployer and Union Safeguards
E m ployer Safeguards
A n employer is generally protected aginst higher costs of plans by
a statement governing his maximum contributions and by provisions
authorizing changes in the types and/or amounts of benefits when
costs exceed the amount which he has agreed to contribute. Such
changes may be authorized by a general clause permitting the em
ployer to make necessary adjustments, or by a detailed provision such
as the substitution of a lump-sum death payment for life insurance.
Another arrangement is to stipulate that costs of the program over
and above those covered by the employer’s contribution shall be borne
by the employees.
I f the union purchases the policy, the employer is sometimes pro
tected by a disclaimer of responsibility for benefit payments in the
event of default. The agreement may state that the employer’s re
sponsibility will be discharged by procurement of the policy and pay
ment of the premiums.
Employers are further protected in some agreements against com
petitors who might otherwise reduce their production costs by failure
to provide equivalent employee benefits. In such clauses the union
agrees not to sign a contract with other employers in the same indus
try, or in the same locality, which would provide for a lower contri
bution rate.
Protection Against Increased Costs
281. Specified Employer Contribution To Constitute Maximum for Present and
Any Future Agreement
The union agrees that the three (3) percent pay-roll contribution as herein
stated shall constitute a permanent ceiling and that no time in connection with
this or any future agreement will said union increase the three (3) percent pay
roll cost of the social security program to the employer.
76
COLLECTIVE BARGAINING PROVISIONS
282. No Additional Employer Contributions To Be Required or Requested
It is mutually agreed that this contract shall cover any and all monetary costs
to the employer to, or for the benefit of, the employees through December 31,
1950, and the employer shall not be required or requested to make any new, addi
tional, or increased payments of any type or kind to, or for the benefit of, the em
ployees, except any costs involved as the result of the adoption of a suitable sub
stitute for section 4 (c), and the employer shall not be required or requested to
make any change in t h e ______retirement plan.
N ote.— Section 4 (c) pertains to wage rates, job classifications, promotions, etc.
283. Employer Liable Only for Benefits Obtainable by Specified Contribution
In the event that the cost of such medical coverage shall exceed said amount,
the obligation of such employer shall be only to furnish such medical coverage
as he can obtain for $2.75 per month.
284. Costs Limited to Over-all Cost o f 2 Cents Per Man-Hour
It is further agreed that the costs of such insurance for all the employees cov
ered by this agreement will be paid for by the corporation, said cost being limited
to an over-all cost of two (2) cents per man hour, but shall be in addition to cor
poration paid insurance costs at the present time. The total hours to be applied
to this cost of two (2) cents shall be the average number o f hours worked at the
plants for the past 6 months, or three dollars and forty-six cents ($3.46) per
month per man, whichever is the greater.
285. Employer May Change Plan at Any Time To Prevent Annual Benefit Pay
ments From Exceeding 1 Percent o f Annual Pay Roll
The company agrees to maintain at its expense the disability plan set forth in
the attached Exhibit “ D” subject to the following limitations:
The total of the benefits paid at all o f the plants and branches of the company
and its subsidiaries included in the plan, wheresoever located, in a fiscal year shall
not exceed 1 percent of the total of the pay roll of the covered employees at all
such plants and branches and subsidiaries, wheresoever located, and the com
pany shall have the right, at any time, to make such changes in the plan as it may
deem necessary to operate it within said limitation.
If the company makes changes in the plan as provided for above, the company
agrees to furnish the union with a statement certified by the public accounting
firm responsible for auditing the company’s business that the disability benefits
claims have exceeded 1 percent of the total pay roll described above.
286. Company May Substitute Death Benefit for Life Insurance in Event of Sub
stantial Increase in Premiums
If for any cause the premium rates on such group insurance are increased by
an amount which, in the opinion of the [employer], is substantial, the [employer]
may in its discretion modify or discontinue such practice. In the event of such
discontinuance, the [employer] will substitute a severance death pay benefit
plan * * * [or] will agree to a plan which shall at least be as favorable to
the employees as a severance pay death benefit plan.
287. Union Agrees To Absorb Future Increases in Insurance Rates, But Company
Will Discuss Changing Underwriters at Union's Request
The union agrees that the employees will absorb any increases in rates as may
be made from time to time by th e ---------service. I f t h e _______service rates are
increased and then union wishes, the company agrees to. discuss purchasing insur
ance coverage with other companies to the extent of the present sum of $1.60 per
HEALTH, INSURANCE, AND PENSIONS
77
month per employee that the company is hereby agreeing to contribute toward
the employees hospitalization and surgical insurance coverage.
No Responsibility for Default by Insurance Carrier
288. Employer’s Responsibility Discharged by Procurement of Policy and Payment of Premium
The company’s obligation hereunder will he discharged by the procurement of
an insurance policy and the payment o f the premiums thereon.
289. No Obligation on Employer’ s Part if Insurer Selected by Union Defaults on
Just Claim
If the company disapproves of the insurance carrier selected by the union, it is
understood and agreed there shall be no additional financial or moral obligation
on the part of the company if the insurance carrier defaults on any just claim.
290. Employer Obligated To Continue Plan Only as Long as Deductions of Con
tributions Are Allowed for Income Tax Purposes
The company will continue its present pension plan and group insurance plan
now in force, as long as it is entitled under applicable law, to a deduction for in
come tax purposes of amounts contributed thereto.
Other Safeguards
291. Union To Require Nonassociation Members To Make Contributions to Fund
The local unions agree to include in all contracts to be made by them with
firms in th e --------- industry located in New York City who are not members of
the association a provision that such employers shall in the same manner make
similar contributions of four (4) percent of their respective weekly pay rolls
to the said health, welfare, and vacation fund.
292. Other Contracts Signed by Union in Industry To Stipulate Same Contribu
tions
During the term of this agreement, the union obligates itself to enter into no
contract or agreement whereby any employer engaged in the men’s and boys’
clothing industry will not be obligated to pay the amount required to be paid to
the trustees as set forth in paragraphs 10-A (1) and (2) hereof. During the
term of this agreement, the union agrees to insert a clause in all of its collec
tive bargaining agreements with manufacturers employing members of the union
engaged in the manufacture of men’s and boys’ clothing, or with the contractors
of such manufacturers, to the effect that the manufacturer or contractor shall
pay to the trustees under the agreement and declaration of trust the sums set
forth in paragraphs 10-A (1) and (2) hereof (as the same may from time to
time be modified according to the terms hereof), to be applied under the agree
ment and declaration of trust. It shall not be considered a violation of this
agreement for employers who are under the jurisdiction of the Chicago joint
board of the union to pay the amounts specified in paragraphs 10-A (1) and (2)
to trustees other than the trustees, or for the collective bargaining contracts or
agreements with such employers so to provide. This paragraph may be waived
by an instrument in writing executed by t h e --------- Association o f the United
States o f America and the union and approved by the board of directors o f the
—-------Association of the United States of America and the general executive
board o f the union.
COLLECTIVE BARGAINING PROVISIONS
78
P rotection of th e F und
In plans which provide for the creation of a fund based on either
employer or joint contributions, different safeguards are often es
tablished in order to assure the payment of premiums or benefits.
Some agreements establish definite limitations upon the administra
tive expenses. The use o f the funds for any other purpose, such as
strike benefits, is explicitly prohibited.
The individual worker may not make a claim on the fund except
insofar as he is entitled to benefits. On severance o f employment, he
may not receive any part of the employer’s contribution instead of in
surance benefits, nor may he assign any benefits or receive cash in lieu
of such benefits. A corollary provision states that the employer shall
forfeit all “title or interest” in his contributions to the fund.
Another form o f protection is to specify how the funds shall be
invested.
Statutory protection of “health and welfare” funds is provided in
the Labor Management Relations A ct of 1947 (sec. 302), according
to which payments made to welfare funds are subject to the following
conditions: The fund must be established as a trust under a written
agreement and administered jointly by employers and employees. It
must provide for medical or hospital care, pensions, workmen’s com
pensation, insurance of any o f the foregoing benefits, unemployment
benefits, life insurance, disability and sickness insurance, or accident
insurance. Contributions to funds established after January 1, 1947,
providing for pooled vacation benefits are prohibited. Pension funds
must be kept separately from others. The restrictions on the admin
istration of the funds do not apply to those established by collective
bargaining agreements prior to January 1,1946.
293. Fund To Be Used Only for Purposes Stated in the Agreement
The health, welfare, and vacation fund established by the union prior to Jan
uary 1,1946, pursuant to collective agreements with employers, in the industry
and maintained since its establishment for the purpose of providing members
of the union with health, welfare, and vacation benefits, shall continue to be
maintained for such purposes.
*
*
*
*
*
*
*
The health, welfare, and vacation fund shall be maintained and used exclusively
for the purposes herein set forth and only for the benefit of the members o f the
union who are entitled to benefits to be provided by said fund.
294. Fund Not To B e Used for Purposes Disallowed by Applicable Law
No payments hereafter made into said fund shall be used for purposes which
exceed the purposes o f the law applicable to such funds. It is agreed that the
present procedure o f sending a list showing the earnings each week together with
check for the amount due shall be continued during the life o f this agreement.
H EALTH, INSUBANCE, AND PENSIONS
79
295. Trustees Limited to Specified Percentage of Contributions for Administrative
Expense
Out of the sums annually contributed by the contributors, the trustees may use
not more than 5 percent for administrative expenses. There shall be included in
the administrative expenses all reasonable and necessary expense of collecting
the contributions and administering the affairs o f the trust hereunder, including
but not limited to the leasing o f an office, the employment of clerical help and the
purchase of such materials, supplies, and equipment as the trustees in their dis
cretion may find necessary or appropriate in the performance of their duties ;
the expenses of at least one audit annually by a certified public accountant;
the cost of any suit or proceeding brought by the trustees to carry out this agree
ment or to enforce their rights hereunder, and the cost of the defense of any suit
or proceeding brought against the trustees, including reasonable counsel fees,
provided such suit or proceeding shall not have resulted from the willful default
or neglect of the trustees.
296. Fund May Not Be Used in Connection With Strike Activity
The fund accumulated from the source as above set forth shall not be used
by the union in connection with any strike activity, including but not limited
to strike benefits.
297. Employer Has No Right, Title, Interest, or Claim to Fund; Employee Rights
Governed by Rules and Regulations
No member of the [association] shall have any right, title, interest, or claim,
legal or equitable, in or to any sum paid by him or by any other employer to
the health and welfare fund or to any o f the funds of the health and welfare fund
itself. No member of any local union affiliated with the [union] joint board
shall have any right, title, interest, or claim, legal or equitable, against his
employer or in or to his employer’s or any other employer’s payments to the
health and welfare fund. Rights o f members of the union against the health and
welfare fund shall be governed by the rules and regulations which have been
adopted in connection therewith.
298. Neither Association, Employer-Members, or Union Members Have Right,
Title or Interest in Fund
Neither the association nor any o f its members shall have any right, title, or
interest in the said fund. No individual member of the union shall have any
right, title, or interest in or claim to the employer’s payments to the fund, or
to the fund except as may be provided in the bylaws or rules and regulations
governing the fund.
299. Employer’s Rights to Fund Limited to Right to Designate Representatives
on Administrative Board
No employer shall have any right, title, or interest in the fund or the admin
istration thereof other than the right o f employers to designate representatives
on the board.
300. No Employee Right to Employer’ s Contribution Instead o f Benefits, Nor May
H e Assign Benefits or Receive Cost in Lieu o f Benefits Upon Termination
o f Employment
No employee shall have the option to receive instead of the insurance benefits
any part of the contribution o f the employer. No employee shall have the right
to assign the insurance benefits or any other benefits to which he may be or
COLLECTIVE BARGAINING PROVISIONS
80
become entitled tinder the agreement and declaration of trust or to receive a
cash consideration in lieu of such benefits either upon termination of the trust
therein created, or through severance o f employment or otherwise.
301. Employee May Assign Hospitalization Benefits Due Him to a Hospital, But
May Hot Assign Other Benefits; Nor May He Receive Other Compensa
tion Instead of Benefits
No employee shall have the option to receive instead o f the insurance benefits
herein contained any other form of compensation. No employee shall have
the right to assign the insurance benefits or any other benefits to which he may
be entitled under this agreement, or to receive a cash consideration in lieu of
such benefits either upon termination o f the insurance herein created, or through
severance of employment or otherwise. Upon written agreement given by the
union or to the insurance company, an employee may be permitted to assign
to a hospital any hospitalization benefits due him.
N ote.— No fund is involved in this agreement; employer contributions go
towards the purchase o f insurance.
302. Employer Not Entitled to Return of Contribution to Fund
In no event will the employer be entitled to the return of any part of any
contribution hereafter made hereunder.
303. Fund Is Property of One Union Even Though Members of Another Union
May Participate in Benefits
As provided for in the previous agreements between the parties hereto, here
inabove referred to, the fund shall be the sole property of, and be administered
jointly by and between the International Ladies’ Garment Workers’ Union and
the Los Angeles Cloak Joint Board o f the International Ladies’ Garment Workers’
Union. L ocal--------- o f the International Brotherhood of Teamsters is specifically
excluded as a party to the title and administration of the fund, provided, how
ever, that this shall not be construed to exclude members of local — from par
ticipating in the benefits arising therefrom. Neither the [employers’ ] association
nor any of its members shall have any title or interest in, or claim in or against,
the fund.
304. Money in Fund Invested in Government Securities
All moneys paid into the fund shall be invested in securities o f the Government
of the United States, except such moneys as in the sole judgment o f the trustees
are required to make health and welfare benefits as the same accrue.
I nspection of R ecords and O th er E nforcement M easures
Many agreements require employers to furnish reports or to grant
access to their records, upon union or trustee request. I f a plan is
administered by the union, the union may be required to make periodic
reports to the employer, or an employer committee may examine the
union’s benefit records. Trustees (or other administrative agents) of
a fund are usually required to furnish reports to both union and
employer.
In the event that an employer defaults in the payment o f his contri
butions the union affected may have the express right to take one or
more of the following steps: I t may “ institute or intervene in any
HEALTH, INSURANCE, AND PENSIONS
81
proceedings at law, in equity or in bankruptcy” to collect sums due
the fund or the employees; it may strike without being in violation of
the agreement; or it may demand a bond which will become forfeit if
the employer again defaults. In addition, the employer may be held
liable for any benefits the worker would have received under fu lly
insured conditions.
Periodic Reports, Audits, and Access to Records
305. Employees May Examine Master Group Policies in Employer’ s Office During
Office Hours
The foregoing benefits shall be subject to aU the terms and conditions which
are fully set forth in the master group policies on file in the office o f the employer
and of the [union] and such policies may be inspected by any employee during
office hours o f the employer or the [union].
306. Union Review of Policies and Records. Union Right to Reject Policy Not
Conforming to Agreement
The union shall have a right to reject the insurance program or policy of
any employer which, in the opinion o f the union, does not conform to the terms
of this agreement.
The employer shall furnish the union with such evidence, information, and
records as may be required by the union for the purpose of establishing the fact
of coverage of each employee covered by this agreement, as well as the fact of
payment o f the employer’s obligation hereunder.
The employer agrees that he will arrange with the insurance carrier that they
will notify the union of any failure by the employer to pay the insurance
premiums.
307. Uniopi May Examine Employer’ s Books; Union Right To Take Appropriate
Action In Event of Noncompliance
The union shall have the right at all reasonable times to examine the books,
records, and papers o f the employer for the purpose of ascertaining whether the
employer is complying with the provisions of subsections (a) and (b) o f this
clause [establishment of fund based on employer contributions], and with Federal
and State unemployment insurance, social security and workmen’s compensation
laws. In the event the employer fails to comply with this subclause the union
may take such action as it deems appropriate to enforce the same, anything in
clause 38 [no strike, no lock-out] to the contrary notwithstanding.
308. Employer Advisory Committee May Inspect Union Benefit Records
The money so paid to the union shall be held and administered by it as a fund
for the exclusive purpose o f providing relief and social benefits to sick and
needy members. An advisory committee o f employers shall be established, con
sisting of a representative of each association which is a party to an agreement
with the union. The advisory committee shall have the right to examine the
books of the benefit fund for the purpose of checking the collection thereof.
309. Industry Plan—Noncontributory: Employer To Supply Copy of Pay Roll to
Trustees (one Union and one Association Representative)
Each employer shall prepare, in quadruplicate, a list of all production em
ployees on its pay roll as of the first day o f the reporting month, the hourly rate
82
COLLECTIVE BARGAINING PROVISIONS
of pay for each of said employees, and the sum arrived at by multiplying the
hourly rate o f each of said employees by 4.93 (equivalent to hourly rate of 35
hours x 3% per cent x 4% weeks) and forward three copies o f said report
t o --------- trust fund together with payment of the sum due, as appears from said
report, to the order of s a id --------- trust fund. Hourly rates in excess of $1.91
shall be reported as $1.91. Piece workers shall be reported at $1.91 per hour.
The pay-roll reports hereinbefore referred to shall be forwarded as herein
before provided, not later than by the 10th o f each month, to the trustees, as
provided in subdivision--------- hereof, based on the preceding month’s pay roll.
310. Employer's Failure To File Reports or Make Payments Considered a Breach
of Agreement; Disputes Over Amount Due Handled Through Grievance
Procedure
Failure to file reports and make the required payments after 5 days’ written
notice by registered mail by the union shall be deemed a breach of this agree
ment. Any dispute as to the amount of payment properly due shall be resolved
in the manner provided in this agreement for disposition of disputes.
311. TJnion To Prepare Report of Operations Prior to Expiration of Contract.
Details of Report Specified
One month prior to the expiration o f this agreement the union shall submit
to the secretary o f the association a report regarding the group insurance pro
gram. The report shall include a statement o f the benefits provided for (their
character, amount and duration of payments), the cost to the fund of providing
such benefits, the amount o f reserve, if any, that has been accumulated to the date
of the report, the number of employees to whom, during the preceding year,
benefits have been paid and the amounts and reasons thereof, and a statement of
the administrative expenses paid out of the fund.
312. Trustees May Request Reports From Employer and Have Access to Pertinent
Books and Records
The employer shall furnish to the trustees, upon request, such information and
reports as they may require in the performance of their duties under the agree
ment and declaration o f trust. The trustees, or any authorized agent or repre
sentative o f the trustees, shall have the right at all reasonable times during
business hours to enter upon the premises of the employer and to examine and
copy such o f the books, records, papers, and reports of the employer as may be
necessary to permit the trustees to determine whether the employer is fully
complying with the provisions of paragraph 2 [employer contributions to fund].
313. Union To Prepare Financial Reports At Least Once a Year
The union shall keep full and accurate books and records regarding the
financial condition of the health benefits under the fund. At least once a year
the union will furnish the association with copies o f financial reports prepared
by the union’s auditors covering said benefits. If the union’s auditors prepare
such reports more often than once a year, copies thereof shall be submitted to
the association.
314. Trustees To Submit Certified Quarterly Financial Report
The board [of trustees] shall submit a quarterly financial report prepared by a
certified public accountant covering the financial transactions o f the fund.
HEALTH, INSURANCE, AND PENSIONS
83
315. Copies of Annual Fund Audit to Union and Employer; Available for
Inspection
At least once each year there shall be an audit of the sick benefit fund as above
created, copies o f which will be furnished the company and the union and will be
available for inspection by any interested party at both offices at all times.
316. Employer To Furnish Union With Specified Information, Including Agreements With Insurance Carrier
The company agrees to furnish to the union within 30 days a preliminary report
outlining the intended contribution of the company toward the insurance plan,
including premium payments, wages payable for administration of the plan and
copies of all verbal and written agreements between the company and the insur
ance carrier.
The company agrees to furnish to the union a quarterly report showing the
premiums paid by the company and the employees toward the insurance plan,
benefits paid under the plan, and reimbursements, if any, paid by the insurance
carrier.
317. Contributory: Union To Receive Financial Report on Operation of the Plan
The union shall receive full information as to gross costs o f such insurance,
losses, and benefits paid and dividends received by the company.
General Enforcement Provisions
318. Union May Require Bond or Cash Deposit as Surety From Employer Who
D efaults; Employer Liable for Any Benefits Employee Would Have Re
ceived if Proper Insurance Coverage Had Been Maintained
I f the employer defaults in the payment of premiums, and if after notice has
failed to correct such default, the union may demand a bond or sum of money
equivalent to one-half (% ) o f the annual premium of the company to guarantee
the continued payment of insurance premium for that company.
I f the employer fails to provide the proper insurance coverage for any em
ployee who is eligible to such insurance benefits as herein provided he shall be
liable for such benefits and shall make payments to the worker in the same
manner and amount as the insurance company would have paid the worker, had
the worker been properly covered by an insurance policy.
319. Trustees May Fine Delinquent Employers for Each Day of Delinquency
Employer contributions to th e --------- industry insurance fund shall be paid in
full on or before the 5th day o f each calendar month and no later. The laxity o f
any employer in meeting his obligations by the 10th day o f each calendar month
shall necessitate action on the part of the trustees in placing a fine o f $10 per day
and for each succeeding day thereafter until such fines and contributions are
paid in full by the delinquent employer.
320. Trustees May Take Necessary Action To Enforce Employer Contributions to
Employer-Association Trust Fund
In case of default or delay on the part of any subscriber in the payment of
any contribution hereunder, the trustees are empowered in their discretion to
take whatever action is necessary to effect the general intent and purpose of
this indenture to provide insurance coverage for employees of such contributor.
84
COLLECTIVE BARGAINING PROVISIONS
321. Agreement Provisions Relating to Administration and Enforcement, Includ
ing Arbitration, Applicable to Benefit Plan
This supplemental agreement and the collective bargaining agreement and the
agreement and declaration of trust shall be construed as a single document,
and all provisions of the collective bargaining agreement relating to the ad
ministration and enforcement thereof (including provisions for arbitration)
shall apply to the administration and enforcement of this supplemental
agreement.
322. Employee-Benefit Provisions May Be Enforced in Same Manner as for Wage
Clause
Failure by the employer to participate in the said welfare fund of th e ------------Industry of the Port of New York and to make the payments required therefor,
or otherwise to provide the insurance specified above, shall render the employer
personally liable to the employees (or their beneficiaries or dependents as the
case may be) for the payment of the said benefits; and the rights of the em
ployees to collect said benefits shall be enforceable in the same manner and on
the same basis as wages.
323. Union To Be Sole Complaining Party
The [union] joint board shall be the sole complaining party in connection
with any enforcement of the obligations of members of the [association] under
this provision.
324. Union May Call Strike I f Employer Defaults; Trustees May Institute Pro
ceedings At Law To Collect Sums Due. Employer Right To Contest De
mands, by Arbitration or Otherwise
In the event that the union receives written notice from one or more of the
trustees, designated by the trustees for that purpose, that the employer has
failed to pay in full any sum due the trustees under paragraph 2, and that such
failure has continued for five (5) days, the union may direct its members to
discontinue work in the plant of the employer and to discontinue work upon
products manufactured for the employer by contractors until all sums due from
the employer under paragraph 2 have been paid in full. The remedy provided
for in this subparagraph shall be in addition to all other remedies available to
the union and the trustees and may be exercised by the union, anything in the
collective bargaining agreement to the contrary notwithstanding. Payment by
the employer under protest shall be without prejudice to his right to contest the
correctness of the trustees’ demand, by arbitration or otherwise.
The trustees, in their own names as trustees, may institute or intervene in any
proceedings at law, in equity, or in bankruptcy for the purpose of effectuating the
collection of any sums due to them from the employer under the provisions of
paragraph 2.
325. Union May Order Work Stoppage If Employer Fails To Procure or Continue
P olicy; Local May Take Legal Action To Collect Benefits Due Members
In the event that the employer fails to obtain or continue an insurance policy
or policies covering all the benefits hereinbefore mentioned, the union shall, after
five (5) days’ notice to said employer, be permitted to direct its employees to
discontinue work in the plant of the employer until such time as all of the em
ployees of the employer are covered by a policy or policies embodying all o f the
benefits hereinbefore mentioned. The remedy provided for in this article shall
be in addition to all other remedies available to the union, and may be exercised
by the union, anything in the agreement to the contrary notwithstanding.
HEALTH, INSURANCE, AND PENSIONS
85
The local union, in its own name, may institute or intervene in any proceedings
at law, in equity, or in bankruptcy, for the purpose of effectuating the collection of
any sums due its members from the employer under the provisions o f the in
surance benefits hereinbefore referred to.
Adjustments to Health or Social Security Legislation
A number of agreements provide for adjustment of benefits to pos
sible future social security laws requiring compulsory contributions
covering benefits that have already been provided by the collective
bargaining contract. To guard against duplicate payments and du
plication or overlapping of benefits, the employer is sometimes allowed
credit for his contributions under the State law against those for
which he pays under the negotiated plan. Some clauses authorize
the elimination of the particular benefits from the plan; others stipu
late reduction of benefits under the plan so that the combined bene
fits and the law will equal the present benefits under the plan.
Still others provide for revision of the plan if any part o f it is dupli
cated through Federal or State legislation. I f the State law requires
employees to contribute to a temporary disability compensation plan,
the resulting employer savings in premium costs are sometimes di
rected to be used for the provision of other benefits, such as life in
surance.
Other agreements contain general provisions that the programs
shall be governed by applicable State laws (presumably relating to
insurance policies).
326. Automatic Conformity to Federal Legislation
In the event any rules and regulations issued by the United States Govern
ment concerning the operation o f the above described [social security] program
should make necessary changes in the program hereinabove described, such
changes shall automatically become part of this agreement during the effective
period o f operation of such rules and regulations. Parties hereto further agree
automatically to do any and all things necessary to effectuate compliance with
the pertinent provisions o f the aforesaid act and said rules and regulations.
327. Establishment of Plan for Disability Benefits Under State Disability Insur
ance Act
By a majority vote, the members of the district council and/or local unions
may agree and the members of the [employers’ association] approve the establish
ment of a voluntary plan through an admitted disability insurer to be designated
by the labor representatives o f the [joint committee] for the payment of dis
ability benefits as provided under the State of California’s Disability Insurance
Act. The said program shall become effective the 1st day of July 1948.
328. Employees To Assign Contributions Required Under State Plan to Contract
Plan, as Allowed by Law
The parties agree to institute and maintain uniform group insurance plans;
the master policies issued by the insurance companies shall be attached and made
875493'
86
COLLECTIVE BARGAINING PROVISIONS
part of this contract. The group insurance plans to be effectuated must be
acceptable to this union.
The plans shall be operated under joint union-management administration.
Provision shall be made for continued insurance of employees during periods of
temporary lay-offs unless employment is secured elsewhere.
It is understood and agreed that employees shall cooperate in instituting the
insurance plans by assigning the 1-percent pay-roll tax (that would normally
go to the State disability plan) to the private plan. The union agrees to secure
the cooperation of its members in this regard.
Moneys paid by the company shall be paid into a joint insurance fund which
shall be administered and expended by the trustees for the purpose of providing
to the employees o f company life, accident, health, and other forms of group
insurance including medical care and hospitalization and to provide such re
serves as the trustees may deem necessary.
The trustees of such joint insurance fund shall consist o f the following:
Bach company participating in the joint insurance fund shall name one trustee
whose vote shall be equal to the total number of company-appointed trustees.
The union-appointed trustee and the company-appointed trustees shall by mutual
agreement appoint an impartial trustee.
To the extent and in the manner above mentioned, the company joins with
other companies, who have made or may make contracts with this union contain
ing provisions similar to those set forth in this section, in establishing and main
taining the said joint insurance fund; it being understood, however, that the
fund will be held and managed by the trustees thereof under the terms and
provisions of a declaration of trust or trust agreement to which the trustees and
the union shall be parties. The trustees shall render reports at regular intervals
to the company and the union respecting application of the moneys received and
benefits paid.
The company agrees to make available to the trustees any and all records of
employees hired, classifications of employees, names, social-security numbers,
and account of wages paid, that the trustees may require in connection with sound
and efficient operation of the joint insurance fund above mentioned, or that may
be required by the insurance companies covering the employees.
Each company, including the instant company, participating in the joint insur
ance fund, shall pay to the trustees, monthly, the sum o f $6 for each union
member, provided said union member has 3 months’ seniority and has worked not
less than 115 hours during the preceding calendar month.
Vacations, paid holidays, and time lost from injuries and compensated by
workman’s compensation insurance shall be considered as time worked; the
payments to be made by the company shall be made within 15 days after the
first day o f each month.
The trustees shall annually cause a full audit to be made of the operations of
the trustee fund by a nationally recognized audit firm.
Any of the provisions of this section may from time to time be modified with
the consent of the union and with the consent of the company trustees provided
however, that such modification shall not increase the amount of the payments
to be made by the company to said joint insurance fund.
In the event that the instant employees covered by said insurance plan desire
group insurance plan for the dependents of employees of the instant company, the
cost o f such insurance shall be borne by the said employees.
N ote.—The California law permits employers to “contract out” from the State
plan by setting up one which is equal in all respects to the State plan and greater
HEALTH, INSURANCE, AND PENSIONS
87
in at least one. There is no tax on the employer for this purpose, but employee
tax may be diverted as above.
329. Sickness and Accident Benefit Plan To B e Modified To Conform With State
Plan
The above sickness and disability benefits shall apply from the signing of this
contract until December 31, 1948. A plan of sickness and disability benefits
in conformity with the laws of the State o f New Jersey will be inserted in this
article and will supersede the provisions of this article as now written on
January 1,1949.
N ote.—This clause is taken from a 2-year agreement effective August 1948.
330. Renegotiation in Event of Legislation; No Loss of Present Benefits
In the event any Federal or State government or agency thereof shall provide
a plan or plans of insurance to which the employer shall be obligated to con
tribute, then in such event both the union and the company agree to re-open this
article and re-negotiate the same, the intent being that union employees do not
lose any of the benefits provided for by the insurance fund and the trust inden
ture.
331. Renegotiation on Reduction or Elimination of Duplicate Employer Payments
in Event of Legislation, Subject to Arbitration
In the event that State or Federal legislation shall be enacted requiring the
employers, during the term o f this trade agreement, to pay premiums or taxes,
measured by the wages of members of the union, for any o f the social insurance
benefits herein provided for, the parties hereto shall, promptly after the enact
ment of such legislation and within 10 days after service o f written notice by the
association on the union, commence negotiations in respect to the reduction or
elimination of that portion of employer contributions required by this agreement
as is applied to the purchase of such social insurance benefits which may be
provided by employer payment of premiums or taxes under such State or Federal
legislation; and in the event that parties fail within 30 days after the commence
ment of negotiations to arrive at an agreement, the matter shall be determined
by an umpire designated by the then Mayor of the City of New York, the decision
of such umpire to be final and binding on the parties.
332. Duplicate Benefits Canceled and Employer Relieved of Cost
Should any Federal or State social security law be enacted and put into effect
during the period of this agreement, providing benefits paralleling any of those
contained herein and imposing the cost thereof upon the company, then and to
that extent only shall such paralleling benefit provided herein become inoperative
and canceled in the policy of insurance and the company shall be relieved of the
cost thereof in order to avoid duplication of insurance costs.
333. Legal Benefits To Be Supplemented To Provide Contractual Benefits. I f
Law Requires Employee Contributions, Contractual Benefits Reduced and
Employer Savings Used for Life Insurance Benefits
I f? during the term of this agreement or any extension or renewal thereof, there
shall become effective any compulsory State or Federal system of employeegroup insurance financed by compulsory contributions from employers, including
the employer herein, which system duplicates in whole or in part that system of
benefits provided in this article IY (a) [group insurance benefits] shall be modi
fied so that its obligation will be to provide benefits that will, when added to the
benefits under sucli compulsory system, equal the benefits of the employees as
88
COLLECTIVE BARGAINING PROVISIONS
provided in article IV ( a ) . In the event such compulsory State or Federal system
shall be financed by compulsory contributions from both employees and employers,
then the benefits in section (a ) shall be reduced and any savings in costs to the
employer shall be utilized to provide life insurance benefits.
334. Relation to State Disability Plans: Benefits Equal Difference Between
Agreement Benefit and State Benefit, Plus $1,000 L ife Insurance Policy
The weekly benefits in case of disability due to accident or sickness not cov
ered by the applicable workmen’s compensation law, shall be equal to fifty (50)
percent of the average total weekly earnings, including overtime, computed on the
basis o f the total earnings of the preceding quarter o f the year, but in no event
less than fifteen (15) dollars per week for a period of thirteen (13) weeks begin
ning with the first day o f disability due to accident, and the eighth day of disability
due to sickness, provided, however:
{a) That in the State of Rhode Island and in any other State where employees
are required by law to contribute to a sickness or health compensation plan
operated under law, the employees shall receive in weekly sickness benefit, under
this agreement, only such amount, if any, as shall be necessary to bring the weekly
sickness benefit up from the amount paid under such law to the amount, and for
the duration, that is payable as hereinabove provided [in the preceding para
graph], and
(b)
Such employees in the State o f Rhode Island or in any other State where
employees are required by law to contribute to a sickness or health compensa
tion plan operated under law, shall be covered by an additional life insurance
policy, with right reserved to change beneficiary, in the principal sum o f $1,000.
335. Cash Weekly Benefits Extended To Conform With State Law
The group insurance program now in effect will be maintained by the com
pany until January 1, 1049 and thereafter except as provided for below :
Effective January 1, 1949 the accident and sickness weekly indemnity pro
vision of the current program will be extended to conform with the New Jersey
Temporary Disability Benefits Law, as approved on June 2, 1948 to provide for
benefits as now provided ($10.50 to $35 weekly) for the first thirteen (13) weeks
of disability as shown in the schedule of insurance contained in Exhibit “ C”
annexed hereto and benefits as provided under the New Jersey Temporary Dis
ability Benefits Law ($9 to $22 weekly) for the next thirteen (13) weeks.
336. Establishment of Sickness and Accident Benefit Plan Operative Only if
Approved as Private Plan Under State Temporary Disability Benefits Law
The employer shall obtain and pay for in full, for every employee covered
by this agreement, a sick and nonoccupational accident insurance policy which
shall provide that said employees shall receive the payment o f $25 per week in
case of sickness, commencing on the fourth (4th) day of sickness for a maximum
of twenty six (26) weeks annually, subject to competent medical examination
and control. If however the employee is sick for a period of fourteen (14) or
more days then the employer shall compensate him for the first three (3) days
of sickness at the rate of $5 per day. In the case o f accidents the policy shall
provide that the payments of $25 per week shall be paid the employee from the
first day of the accident.
This section shall be operative only if and as long as such an insurance policy
is approved by the Unemployment Compensation Commission as a private plan
under the Temporary Disability Benefits Law. Should this plan not be approved,
HEALTH, INSURANCE, AND PENSIONS
89
or if approved, should approval subsequently be withdrawn, then this section shall
be inoperative and the employer and fhe union hereby agree to reopen this
contract for the purpose of negotiating and providing the employees with a private
plan which will meet with the approval of the Commission.
'Note.—This agreement covers a New York plant.
337. Employee Deductions Under State Disability Law Paid to Union Fund
To Provide Insurance Required by Law
It is further agreed that the employer will deduct 1 percent of the employees’
pay as required by the California Unemployment Insurance Disability Act. The
deduction will not exceed the maximum provided by law and will be paid to the
union ([union] insurance trust fund). The union agrees to provide insurance
as required by the California Unemployment Insurance Disability Act for all
of the employees for whom the deductions are made and paid to the union. Such
plans shall be approved by the appropriate State agency as required by law.
N ote.— Under this agreement employers contribute $3 per month to a fund
administered by the union.
338. Employer Assumes Employees' Share of Pay-Roll Taw Required Under
State Disability Benefits Law
The company agrees to pay for the temporary disability benefits provided
for under the New Jersey law known as the Temporary Disability Benefits Law
effective January 1,1949.
N ote.— Under the New Jersey law employees are required to contribute 0.75
percent of their wages but the employer may assume all or part o f this amount.
The employer’s contribution amounts to 0.25 percent of covered pay roll. Under
this contract, employees also receive hospital, surgical, and medical benefits
at the employer’s expense.
339. Payments to Employee Under Insurance or Compensation Laws Are De
ducted from Benefits Paid by Plan
Where, under any item covered by insurance or compensation laws, the em
ployee is entitled to benefits under this agreement, such insurance or compensa
tion payment shall be offset against such benefits.
340. Validity and Interpretation o f Plan Subject to State Law
The blanket insurance policy or policies herein mentioned having been ex
ecuted and delivered in Philadelphia, Pa., it is hereby mutually agreed that the
laws of the Commonwealth of Pennsylvania shall govern the validity and inter
pretation of the within social security provision and the said policy or policies
herein mentioned.
The Individual Worker’s Equities Under A Benefit Plan
Whenever a worker is temporarily off the job, whether because o f
lay-off, illness, leave o f absence, or other reasons, the question of con
tinued protection under the benefit plan arises. L ife insurance gen
erally terminates 31 days after employment ends, but the employee has
the privilege of converting the insurance to an individual policy, at a
higher premium rate. Other insurance (sickness and accident, hos
90
COLLECTIVE BARGAINING PROVISIONS
pitalization, etc.) generally terminates at the same time as employment,
or shortly thereafter.
In industries with sharp employment fluctuations, or in which tempo
rary lay-offs occur frequently, the worker is often left unprotected.
Some collectively bargained plans established on an area-wide or
industry basis extend protection to union members in the event o f
transfer to another employer. Attachment to the industry’s labor
market, rather than to a particular shop, determines eligibility for
continued participation. Under such industry plans, the worker con
tinues to be covered when he shifts from one plant to another; i. e.,
coverage is retained by employees transferring to other plants in the
same industry where an insurance plan is in effect. This practice
resembles pooled vacation plans whereby vacation allowances are drawn
from a central fund, to which each employer makes periodic contribu
tions on the basis o f his total pay roll. In this way, workers who
transfer from shop to shop and are seasonally employed for short
periods still receive their earned vacation credits.
T em porary L a y -O ff or L eave of A bsence
Protection of employees who are laid off or who are granted leave o f
absence varies. Under some agreements, a worker continues to be cov
ered for a specific period, usually from 1 to 2 months, and sometimes
up to 6 months. In a contributory plan, extended coverage usually
depends on the continuation of the employee’s contributions. Some
plans exclude temporarily laid-off workers from coverage; others pro
vide for consideration of continuance o f insurance coverage under such
circumstances. Occasionally, provision is made for automatic cover
age o f rehired employees, without the usual waiting period. One con
tract specifies that the employer shall hold insurance dividends in
trust for payment of employee contributions during periods of dis
ability. (See clause No. 211.)
341. Noncontributory: Company Continues Premium Payments for 18 Weeks if
on Sick Leave and for First Month A fter Lay-Off
The company agrees to continue payment of said premiums during an employee’s
absence because of sickness or accident for a period of thirteen (13) weeks and
further agrees in case of lay-offs to pay the first monthly premium due on said
policies during the period o f lay-off.
342. Noncontributory: Sickness Insurance Continued fo r 2 Months, Other Insur
ance for S Months A fter Leave of Absence. Employer Relieved of Contri
bution if Employee Completes 8-week Probationary Period in Another
Plant i/n the Industry. Absence Due to Total Disability Not Considered
Leave or Severance of Employment
Any worker who is given a temporary leave o f absence by the employer for any
reason except sickness or accident shall be covered for life, hospitalization, and
HEALTH, INSURANCE, AND PENSIONS
91
surgical aid insurance benefits by the employer for a period o f at least three (3)
months from the date of his leave, and for sickness and accident insurance, for a
period of at least two (2) months from the date of his leave; but, if such employee
secures employment in another plant in the industry, such employee shall be
required to pass a probationary period o f three (3) weeks with the new employer,
and upon his having passed this probationary period, the new employer shall place
this employee on the regular list o f those employees participating in the insurance
program. The original employer shall then not be required to continue payment
of premiums for the insurance herein mentioned for that employee.
Under terms o f all the policies in effect, absence from work .due to total disa
bility of any sort shall not be interpreted to be eiither a leave o f absence or a
severance o f employment as referred to in this contract or in the policies.
N ote.— New employees who have not worked in the industry or who have not
been members o f the union for a period of 30 days must pass a 30-day probationary
period to participate in the plan.
343. Noncontributory: Coverage Extended to End o f Contract Year in Case of
Sickness; Terminates Earlier if Separated for Other Reasons
In case o f sickness, the entire benefits will be carried until the end o f the con
tract year.
Termination o f Insurance—All forms o f insurance to terminate on the last
day worked in “quit” or “ discharge” cases.
In the case o f lay-off, leave-of-absence or retirement, the insurance benefits to
terminate at the end o f the month in which such lay-off, leave-of-absence or retire
ment occurs.
Employees recalled after lay-off shall be reinstated immediately upon return
to active duty, without waiting 6 months.
Upon termination of employment for any reason, “ life insurance” may be con- .
verted to an individual policy within 31 days without physical examination.
344. In Case of Absence fo r Illness, Hospitalization Coverage is Extended Not
To Exceed 1 Year and L ife Insurance Coverage Until Return to Work
Employees unable to work because o f illness or accident shall be covered for
life insurance until return to work and for hospitalization for a period not to
exceed one (1) year.
345. Noncontributory: Life Insurance and Hospital Benefits Terminate A fter 3
Months* Lay-Off; Other Benefits Immediately. All Benefits Terminate
A fter 5 Months9 Absence Due to Sickness or Accident. Advance Notice
by Employer of Payment of Premiums.
In case an employee is laid off, life insurance and hospital benefits under this
agreement shall terminate where an employee has been on lay-off for three (3)
months or m ore; the benefits under accidental death, dismemberment or loss of
sight and surgical expense insurance shall terminate at the time the employee
ceases active work.
All insurance benefits under this agreement shall terminate where an employee
has been absent due to sickness or accident (excluding workmen’s compensation
cases) for five (5) months or more.
The employer will notify, in writing, employees laid off or absent due to sickness
or accident prior to the time when payment of insurance premiums will be dis
continued by the employer, so as to give the employee the opportunity to convert
92
COLLECTIVE BARGAINING PROVISIONS
the life insurance and Blue Cross during the thirty (30) day grace period after
payment o f the last premiums by the employer.
346. Noncontributory: Coverage fo r Maximum of 2 Months A fter Lay-Off
Laid off employees shall be reported and premiums paid fo r a period not
exceeding 2 months.
347. Life Insurance Coverage Extended for 60 Days During Leave of Absence;
Employee To Make Arrangements on Insurance Paid for by Him
Company group life insurance carried by the company for the benefit of the
employee shall be continued during leaves of absence for a period not exceeding
60 days except as to insurance paid for by the employee, in which case such em
ployee shall make arrangements concerning the same.
348. Noncontributory: Coverage Except for Life Insurance for 1 Month During
Temporary Lay-Off or Leave o f Absence
During a period o f temporary lay-off or leave o f absence, the system o f in
surance except life insurance provided herein shall be continued for a period o f
1 month beyond the end of the month during which the employee ceased work.
349. Extended Coverage During Temporary Lay-Off for SO Days Following End
of Month o f Lay-Off; Coverage Continued During Seasonal Lay-Off Pro
vided Recalled to Work by Specified Date
Any employee temporarily laid off by the company shall continue to be eligible
for benefits provided in the comprehensive group insurance plan now in force
until the end of the month of his said lay-off and for a further period o f thirty
(30) days thereafter. Any employee seasonally laid off and who is recalled by
the company by March 15 following his seasonal lay-off shall, during the period
of his seasonal lay-off, continue to be eligible for the benefits provided in com
prehensive group insurance plan now in force, provided that he shall give notice
o f illness or accident to the company promptly in order to be eligible for health
or accident benefits.
350. Noncontributory: Coverage Extended fo r SI Days During Leave of Lay-Off,
But Terminates Immediately on Date o f Termination of Employment.
Termination o f Employment Defined.
In the event o f an employee being granted a leave o f absence authorized by
the company for any reason other than nonoccupational accident or sickness, all
group insurance benefits will remain in full force and effect for the period of the
authorized leave o f absence, but not exceeding thirty-one (31) consecutive days
from date of the authorized leave of absence.
In the event of an employee being laid off by the company, all group insurance
benefits will remain in full force and effect for the period o f the lay-off, but not
exceeding thirty-one (31) consecutive days from date o f lay-off, but should any
such employee during the said period accept employment elsewhere, all group
insurance benefits will then terminate on the date o f such employment.
In the event of termination of employment, all group insurance benefits will
terminate on the date of termination of employment by the company. For the
purposes o f this paragraph, “termination o f employment” shall include any dis
charge or voluntary quit, and may include, at the option o f the company, any
break in continuous active work with the company due to any strike, sit-down,
stay-in or slow-down, or any curtailment or restriction of, or interference with,
production.
HEALTH, INSURANCE, AND PENSIONS
93
351. 'Noncontributory: Life Insurance Continued During Total Disability for
Maximum of 12 Months and Provided Death Occurs Before Age 652
I f you become totally disabled your life insurance protection continues for a
period equal to the time it has been in force but not exceeding 12 months, provid
ing death occurs prior to age 65 and the group policy is in full force.
352. Noncontributory: Employer Not Required To Cover Employees on Lay-off,
on Leave o f Absence, or Prior to Completion of Probationary Period
The company shall be under no obligation to make payments under this article
for any employee after his employment with the company is terminated fo r any
reason or while the employee is laid off or on leave of absence or for any other
reason not drawing wages or, in the case of a new employee, until after he has
finished his probationary period.
353. Contributory: No Limit on Extended Coverage During IUness, Provided
Insurer Consents and Employee Pays His Share of Cost
Provided the insurance company, carrying the group life insurance and the
sickness, accident, surgical, and medical insurance upon the lives o f employees
of the company, and the hospital service corporation of which employee is a
member consent, the company will continue to make the payments called for
under section X IV, XV, and X V I during said period [o f sick leave without pay]
provided the employee continues to carry his share, if any, o f the cost o f the
various coverages.
354. Contributory: Group Insurance Continued for Employees on Leave of Absence
fo r Pull-time Union Service, Provided Employee Pays His Share of Pre
mium at Least Monthly in Advance
The group insurance o f such employees [on leave for full-time union service]
shall be continued in force during such authorized leave-of-absence in case, and
in such manner, as the provisions of the company group insurance contract permit,
provided they pay their share o f the group insurance premiums at least monthly
in advance.
355. Contributory: Employee May Maintain Coverage (Limited to SI Days for
Accidental Death and Dismemberment and Accident and Sickness) During
Leave or Lay-off by Paying Premiums
The company agrees to permit all employees on the seniority list who are on
leave of absence or laid off to maintain insurance coverage upon monthly payment
of premiums to the personnel office of the company, except that the group acci
dental death and dismemberment, accident and sickness insurance shall be
suspended at 31 days in cases of lay-off or leaves o f absence fo r reasons other
than sickness or accident.
356. Extended Coverage Under Blue Cross Pirn During Maternity Leave of
Absence, Provided Employee Pays Premiums in Advance
An employee granted a maternity leave of absence may elect to continue her
coverage in the Blue Cross plan for a period not to exceed 12 months from the
effective starting date of said maternity leave of absence providing: (1) the
employee notifies the company prior to the commencement of her leave o f absence
of her desire to continue such membership, and (2) pays in advance the contribu
tion necessary to cover her share of the premium cost of such membership for
the elected period. (3) The provisions of this clause shall be effective as of
2 From a descriptive booklet or related material.
94
COLLECTIVE BARGAINING PROVISIONS
June 10, 1948, and shall apply only to employees granted a maternity leave of
absence on this date or subsequent thereto.
357. Contributory: Employee Covered During Temporary Lay-Off Unless Em
ployed Elsewhere
Provision shall be made for continued insurance of employees during periods of
temporary lay-offs unless employment is secured elsewhere.
N ote.— This plan is jointly financed in the sense that employees assign to the
employer-union plan the 1 percent pay-roll tax that would normally go to the
State disability plan.
358. Employer To Continue Contributions for 6 Months A fter Employee’s Illness
or Injury, Provided Employee Contributions Made
The company will contribute to a family doctor and hospital contract or con
tracts or insurance for necessary medical and hospital treatment which the unions
may select, subject to the approval of the company, covering the families of its
employees an amount equal to the amount paid by the employees not exceeding
one ($1) dollar per family per month. At the request of the employees the com
pany will deduct the employee’s contribution from his earnings and make disposi
tion thereof in accordance with such contract or contracts or insurance as may
be entered into between such employees or their representatives and such doc
tors, hospitals, or insurance company. Where such employee is temporarily off
the company’s pay roll because of sickness or injury, on satisfactory proof having
been made to the company that he has contributed to any such contracts the com
pany will continue its contribution, as above set forth, for a period not to exceed
six (6) months.
359. Contributory: Employer Pays Full Premium for Employee and His Dependents for First Month of Employment A fter Lay-Off
In the event of a lay-off of one or more insured employees for more than 1
month after the month in which such lay-off occurs, the company agrees to pay
the full insurance premium for such employee and his dependents, if any, for the
first month of his employment after his call back and return to work.
360. Contributory: Consideration (Liven to Extending L ife Insurance Coverage
During Lay-Off. Continuation Also Subject to Regular Employee Con
tributions 2
I f you are temporarily laid off, your insurance can be continued until the end
of the policy month following the policy month in which the lay-off starts. I f at
the end o f that period you are still on temporary lay-off, consideration will be
given to continuing your life insurance for a longer period. Continuation of in
surance during lay-off will be subject to payment of contributions on or before
the pay days on which they would be deducted if you were working.
361. Military Service Leave: Coverage Continued for 1 Year and 40 Days With
Entire Premium Paid by Company
Members o f ---------union, local N o .---------- , who enter the armed forces of the
United States shall be continued on the group life insurance rolls for a period of
one (1) year and forty (40) days from their entry therein. They shall be treated
for this purpose as being on a leave of absence without pay.
Their entire premium shall be paid by the company for both the contributory
and noncontributory insurance for such period, and where the amount of insur
2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
95
a nee is to be determined by the length of service regular increases shall be made
just as though the individual continued on his duties with the company. All
insurance will terminate if the country goes into an actual state of war.
362. Military Service Leave: Company Pays Premium on National Service Life
Insurance for Same Face Value as Under Company Plan, up to Maximum
Amount. Coverage Under Company Plan Ceases
Premiums on an amount of national life insurance equal to the amount of [com
pany] group insurance carried by the individual, but not to exceed ten thousand
(10,000) dollars, and for a period not to exceed beyond 6 months and 90 days
after the termination of war. Such insurance must be applied for within thirty
(30) days after induction. [Company] group insurance will be terminated upon
separation from the pay roll.
363. Military Service Leave: Company Pays Premiums on Government Insurance
Provided Employee Enrolled in Company Plan 30 Days Prior to Enlistment
or Draft
In addition, during the term of this agreement, the company will forward to
each employee who has been or during the contract is drafted, or enlists under
said act, an amount o f money sufficient to cover life insurance premiums under
the insurance plan offered by the United States Government in a face benefit
amount equal to that carried by the employee when employed by the company,
provided such employee has enrolled in the company group insurance plan thirty
(30) days prior to his enlistment or draft.
364. Insurance Canceled 90 Days A fter Entry Into Military Service; Reinstated
Without Examination or Waiting Period on Return Within 90 Days A fter
Honorable Discharge
Company group life insurance carried by employees entering military service
will be canceled ninety (90) days after employee enters such service. Advance
premium paid by employee beyond date o f cancellation will be refunded to em
ployee. Insurance of employees re-entering company service within ninety (90)
days after honorable discharge from military service will be reinstated without
physical examinations or waiting period.
T e r m in a t io n
of
Em ploym en t
or of
U n io n M e m b e r s h i p
Under some benefit programs, all coverage ends when an employee
leaves the company. Commercial group life insurance coverage is
customarily extended for 1 month after employment ends, but beyond
this period in a few plans. It is also standard under commercial
insurance to continue hospital and surgical coverage for a specified
period after employment ceases, under fixed conditions: I f an opera
tion is performed within 3 months after termination; if hospital
confinement or operation results from total disability which is con
tinuous from date of termination; in pregnancy cases within 9 months
after employment ends.
In plans which require union membership in good standing as a
condition for receipt of benefits, an employee’s loss o f good standing
automatically removes him from coverage.
96
COLLECTIVE BARGAINING PROVISIONS
On termination of service, a participant is permitted to convert his
group life insurance coverage, without medical examination, to an
individual policy with the same insurance company. However, ap
plication for the change must be made within 1 month after severance
of employment. Some plans extend the conversion privilege to hos
pitalization and surgical-medical coverage. Under Blue Cross and
similar hospitalization plans, coverage may be converted to an indi
vidual plan at a slight increase in cost.
365. Contributory Plan: All Benefits Convertible A fter Termination, Subject to
Age, Employment, and Application Restrictions2
You may continue benefits if you leave tbis company by changing to an indi
vidual policy which is issued subject to [insurance company’s] underwriting
rules, if you (1) are employed elsewhere (2) are less than 60 years of age and
(3) apply for the policy within 31 days after you leave.
N ote.— The benefits provided under the plan include accidental death and dis
memberment, sickness and accident, hospital, surgical, and hospital and surgical
for dependents.
366. Noncontributory: Blue Cross Convertible A fter Termination
On January 1, 1949, revised and extended employee benefits connected with
group hospital, medical-surgical insurance will be effected. Announcement of
all benefit programs with full explanations, including the company’s retirement
plan in booklet form, will be distributed to each employee as soon as possible.
Employees leaving the company may continue the services provided they
notify the Blue Cross office within 30 days after they leave the employ o f [the
company]. They will be given credit for accumulated time, but revert to standard
contract terms (12 months waiting period for maternity), unless termination is
due to conditions stated in paragraph — .
367. L ife Insurance Extended for SI Days A fter Termination of Employment;
Other Benefits Cease Immediately
The life insurance, at the [employer’s] expense, on any employee covered
hereby, shall cease, automatically, thirty-one (31) days after the date of the
termination of employment of such employee, and said accident and sickness
and hospitalization and surgical benefits insurance shall continue only while the
employee remains in the employ of the [employer].
368. Conversion to Sum Equal to or Less Than Croup Life Insurance Policy.
Other Insurance Ceases on Termination of Employment or at Age 70,
Whichever Is Earlier?
Upon termination of your free and contributory group life insurance as out
lined in your certificate, due to termination of employment, you will be entitled
to have issued to you, without medical examination, provided you make applica
tion to the [carrier] within 31 days after termination of employment, a policy
of life insurance in any one of the forms customarily issued by the [carrier]
(except term insurance), in an amount equal to— or, at your discretion, less
than—the amount of your protection under the group life policy, upon the pay
ment of the premium applicable to the class of risk to which you belong and to
2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
97
your age at the time of conversion. The accident and sickness and accidental
death and dismemberment coverages are not convertible and terminate upon
termination of employment or attainment o f age 70 whichever is the earlier date.
You name your own beneficiary and may change the beneficiary at any time
by filling out a request form.
369. Insurance Terminates When Union Membership or Service for Covered
Employer Terminates, With Privilege of Converting Life Insurance2
The insurance benefits on any member will terminate at the end of the premium
month following the date on which he ceases to work for a contributing em
ployer, or terminates his membership in the union, providing premiums are paid
in his behalf * * *. When the life insurance of a member terminates it
may be converted to an individual policy of life insurance without medical
examination within 31 days.
N ote.—This is a union shop agreement.
370. Insurance Coverage Terminates on Date of Separation if Employee Quits
Without Notice or is Discharged for Cause, but is Extended During Lay-off
or Sickness, or if Employee Quits A fter Owing due Notice
In the case o f employees temporarily unemployed as a result of lay-off or be
cause of quitting after giving a week’s notice or because o f discharge but not
for disciplinary reasons, the foregoing benefits, with the exception of sickness
and accident benefits, shall be continued np to six (6) months after the end of
the policy month of lay-off, quitting, or discharge, the premiums for such coverage
to be paid from the welfare reserve fund, and not to be chargeable against last
employer. Any employees who are temporarily unemployed because of quitting
or discharge must be ready, able, and available for work in the lithographic
industry in the Detroit area.
Employees who walk out on the job without notice or who are discharged for
disciplinary reasons without notice shall have their insurance canceled as of the
date of termination of employment.
Any employee who is temporarily laid off or who is temporarily unemployed
because of quitting or discharge shall have his insurance canceled immediately
upon securing employment other than in the lithographic industry.
371. Conversion to Individual L ife Insurance Policy (Except Term Insurance)
Allowed, Without Physical Examination on W ritten Application Within
SI Days A fter Termination2
Upon termination of your insurance on account o f termination o f employment
you may convert the life insurance—without physical examination—to an in
dividual life insurance policy in any one of the forms customarily issued by [in
surance company], except term insurance, provided written application is made
to the insurance company within 31 days after termination of employment. If
you should die during this 31-day period, the amount o f the insurance would be
payable to your beneficiary.
372. Maternity Benefits Extended 9 Months A fter Termination2
If your employment terminates, your protection and that o f your dependents
under this plan will automatically cease, except in the case of maternity when
claims for hospital expense on employees will be honored within 9 months after
termination of employment.
2 From a descriptive booklet or related material.
98
COLLECTIVE BARGAINING PROVISIONS
373. Extension of Hospital and Surgical Benefits for Employees
Group hospital indemnity is payable for confinement commencing (a) while
the employee is insured, or (&) within 3 months following termination of the
employee’s insurance provided the confinement results from total disability
which has been continuous from date of termination, or (c) within 9 months
following termination of the employee’s insurance provided the confinement
results from pregnancy or resulting childbirth or miscarriage.
I f more than one operation is performed during any one period of disability
reimbursement will be made for each operation but not more than the maximum
reimbursement of $150.
Maximum surgical reimbursement is made for operations caused by nonoccupational accident or sickness in accordance with the schedule attached.
An important feature of the plan is the provision that if an employee’s in
surance lapses during any period of disability, the employee is entitled to re
imbursement regardless of whether the operation is performed before cancellation
or within 3 months thereafter during the continuance of the disability (9 months
if the operation is due to pregnancy or resulting childbirth or miscarriage).
374. Extension of Hospital and Surgical Benefits fo r Dependents2
In addition to covering hospital confinement beginning and operations per
formed while your insurance with respect to a dependent is in effect, hospital
and surgical benefits are payable for hospital confinement beginning and opera
tions performed, (a ) within 3 months after termination of the insurance if the
dependent is disabled from the date of termination to the date hospital confine
ment commences or the operation is performed, or (&) for confinement and
operations due to pregnancy, childbirth, or miscarriage within 9 months after
termination of the insurance.
R e t ir e m e n t
for
A
ge o r
D is a b il it y
Contracts sometimes stipulate that all insurance will cease on re
tirement, or at a given age. However, the employee may convert his
life insurance (usually without physical examination) to an individual
policy for which he alone assumes premium payments. Some other
plans provide continuation of life insurance at no cost to the employee,
either for an amount equal to that in force at the time of retirement
or for a smaller amount.
Extension is less frequent for other types of health and insurance
benefits than for life insurance. Conversion of such benefits to in
dividual policies is rarely, if ever, mentioned in a contract, though
it is permitted by some underwriters.
375. Employer To Maintain Life Insurance on Retirement Equal to Amount in
Force at Time of Retirement
The company shall continue to maintain the group life insurance of a “ re
tired employee.” The term “ retired employee” shall mean a former employee
of the company whose employment has been terminated by retirement and who
shall have been placed on the company’s retirement list by resolution of the
retirement committee, provided that the company shall have notified the insur2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
99
ance carrier in writing, prior to [date], or the effective date of the retirement
of the employee, that the employee is to be placed on snch retirement list. The
amount of insurance as to each retired employee shall be the amount of insurance
in force on his life hereunder at the time he shall have become a retired em
ployee. The insurance hereunder on a retired employee is to be canceled when
such retired employee has issued to him an individual policy under the conver
sion privilege.
376. Employer Pays Premiums on $500 of Life Insurance for Retired Employee,
Who May Convert Remainder {if any) or Original Amount at Own
C ost2
When you retire, your life insurance will be continued in force by your com
pany without cost to you as long as you live. The amount of life insurance which
will be continued is $500 for all employees regardless of the amount of your in
surance prior to retirement. If, prior to retirement, your amount of life insur
ance was larger than $500, you may convert the balance without medical
examination and continue the additional protection at the insurance company’s
regular rates at your own expense in the same manner as if you terminated your
employment.
377. Employer Assumes Cost of Life Insurance for Employees Retiring for Age
or for Total and Permanent Disability
In the event that an employee retires at age sixty-five (65) from the service
of the company and is drawing social security benefits, the company will continue
such employee’s group life insurance and assume the entire cost.
In the event an employee retires on account of total and permanent disability
and has completed ten (10) years of service, the company will continue such
employee’s group life insurance and assume the entire cost.
378. Noncontributory: Life Insurance Extended at Employer’s Expense for 1 Year
A fter Employee’s Retirement
The life insurance, at [employer] expense, on any employee covered hereby
shall cease, automatically, thirty-one (31) days after the date of the termination
of employment of such employee and said accident and sickness and hospital
ization and surgical benefits, medical expense and consultation fees insurance
shall continue only while the employee remains in the employ of the [em ployer];
provided, however, that the [employer] shall continue in force, at its own
expense, on the life of each retired employee who retires in accordance with
the provisions of the section entitled—“ retirement allowance,” hereinafter set
forth, on and after June 1,1945, group life insurance in the amount of $1,000 for
a period of one (1) year after the date of such employee’s retirement. The pro
vision to continue in force group life insurance in the amount of $1,000 on the
life of each retired employee for a period of one (1) year after the date of such
employee’s retirement shall include only those employees who retire on and
after June 1,1945.
379. Noncontributory: Employer Continues Payment of Life Insurance Premiums
During Total Disability Commencing Before Age 602
I f employment is terminated prior to age 60 because of total disability the
life insurance will be continued without cost. Evidence o f continued total
disability will be required from time to time.
2 From a descriptive booklet or related material.
100
COLLECTIVE BARGAINING PROVISIONS
380. Life Insurance Paid in Installments in Event of Permanent and Total
Disability Prior to Age 60
If an employee qualifies under the policy provisions for permanent and total dis
ability benefits prior to age 60, the amount of his life insurance will be paid
to him in installments.
381. 'Noncontributory: Lump-Sum Payment of Not Less Than Face Value of
Policy or Continuation of Benefits Without Premium Payments in Event
of Total Disability
There shall be provision for the continuation without premium payments of
benefits payable under the policy for each employee who has been deprived o f his
employment because of total disability, such continuation to run for the entire
period of such total disability. This provision may be limited to those employees
who suffer such total disability before reaching the age of sixty (60) years. With
respect to such employees sixty (60) years o f age and over, the employer shall
continue to pay premiums on them for a period of at least 1 year from the last day
worked, and the benefits under the policy shall be payable by the carrier company
for a period of 1 year after the termination of the policy.
In substitution for the above, the policy may provide for a lump-sum payment
of not less than the face amount o f the policy to any totally disabled employee.
382. Employer To Pay L ife Insurance Premium for Retired Employee, Provided
Acceptable to Insurance Carrier
In the event that any employee is eligible for old age retirement and in fact
retires, the company will continue to pay the group life insurance premium upon
said employee, provided that this arrangement is acceptable to the insurance
carrier.
383. Retired Employee May Retain Hospital and Surgical Coverage by Continuing
His Contributions; Medical and Weekly Sickness and Accident Coverage
Ceases
At retirement on pension at age 65 or later an insured employee may retain his
hospital and surgical benefits under t h e ______insurance policy for himself and
wife upon continuing to pay his regular premiums. Medical and weekly indem
nity benefits, however, will not be available for such employees.
N ote.— This is a contributory plan.
O th e r C overage P rovisions
384. Termination of Surgical Insurance I f Employee Is Transferred to an Ineligi
ble Class or I f Other Insurance Terminates
An employee’s surgical expense insurance shall automatically terminate if he is
transferred to a class o f employees not eligible for the insurance, or if his other
insurance referred to in the section “employees insured’’ terminates, or if this
rider terminates. I f the employee’s surgical expense insurance is terminated
upon the termination of such other insurance, any reinstatement of such other
insurance shall automatically effect a reinstatement of the surgical expense in
surance provided the employee remains eligible therefor.
385. Coverage Continued During Strike, Lock-Out, or Other Suspension, Provided
Each Party Continues Contributions
To keep policy in force, both employer and employee must pay his share, dur
ing any strike or lock-out, regardless of its duration. Same applies during any
suspension, in the industry, beyond the control of either management or labor.
HEALTH, INSURANCE, AND PENSIONS
101
386. Hospitalization Coverage Continues for 9 Months A fter Termination of
Policy in Case of Maternity and 8 Months in Case of Total and Continuous
Disability Beginning While Policy Was in Effect
The policy shall provide for the payment of benefits after the termination o f
the policy for a period of nine (9) months in the case of maternity, and for a
period of three (3) months in the case of hospitalization in connection with total
and continuous disability sustained while the policy was still in effect.
38T. Insurance Lapses at End o f Premium Month in Event of Strike
The company and the union agree * * * that all insurance shall lapse at
the expiration of any premium month during which employees are on strike.
875403°— 50------8
Chapter 2.— P ension P lans
Introduction
Pension or retirement plans provide regular periodic payments, or
annuities, to employees who retire or who are retired from service for
one or a combination of the following reasons: they have reached
a certain age, called the “normal” retirement age; they have served a
minimum number of years; or they have become permanently and
totally disabled.
Like other employee-benefit plans, pension plans have long existed
in industry. They were almost invariably established unilaterally by
the employer, and often were contributory. The war period witnessed
the growth and development of such plans, whether established by
the employer or negotiated through collective bargaining. The inade
quacy of present social security old-age and survivors5insurance bene
fits stimulated the demands by unions for pension benefits negotiated
through collective bargaining and financed entirely by the employer.
Although some major pension plans have been initiated as a direct
result o f collective bargaining, the details of most of these plans are
seldom outlined in the collective bargaining contract. Usually, the
agreement will indicate only in general terms the method of financing
and methods of administration. Pension amounts, eligibility require
ments, administrative rules and regulations, and other similar provi
sions are generally prescribed in the rules and regulations issued by
the trustees, or by the union (in a union-administered p lan ), or con
tained in a separate document or booklet which may or may not be
attached to the collective bargaining agreement. Other collective bar
gaining agreements contain a commitment by the company to pay
retirement allowances in accordance with a separate retirement-allow
ance plan, which is jointly negotiated and signed as a separate
agreement.
Usually, the pension or annuity is paid only if the retiring employee
meets the age and/or service requirements or is totally disabled. U n
der some plans, however, other conditions for retirement are provided.
For example, an employee retiring or otherwise leaving the company’s
employ before the normal qualifying period, but after a stipulated
age or period of service, may receive a reduced annuity, beginning
immediately on separation, or a deferred annuity, with pension
payments beginning at the normal retirement age. I f the plan is a
102
HEALTH, INSURANCE, AND PENSIONS
103
contributory one, an employee on separation from service before re
tirement may choose between an annuity or a lump-sum refund o f his
contributions, with or without interest.
Under some contributory plans the survivors of an employee who
dies before retirement receive a lump sum equal to his contributions or,
more rarely, periodic payments, either monthly for life or for only
a stipulated period. Some plans provide also for payments to bene
ficiaries if the employee dies within a limited period after retirement;
normally, however, survivor annuities are paid only if the employee
has elected, prior to actual retirement, to accept a reduced annuity
during his lifetime. (The omission of survivor benefits, particularly
lump-sum payments, may be offset by life insurance.)
Eetirement from service with a full annuity is usually automatic or
compulsory at a specified retirement age, frequently 65. A number of
unions are seeking to make retirement optional with the employee,
partly on the ground that an employee’s productive capacity does not
necessarily end at age 65, and partly on the ground that pension
payments under the plan, even when added to Federal old-age benefits,
are inadequate to compensate for the loss of regular earnings.
Pension plans which are the direct product o f collective bargaining
tend to provide flat-sum pension payments irrespective of the employ
ee’s earnings or length of service. Older plans, usually employerinitiated, tend to provide pension payments which are based on a
formula and which vary according to age at time of entry into the
plan, retirement age, length of service, earnings, etc. Some plans
authorize deduction of all or part of the primary Federal social se
curity (old-age) benefits from the amount due under the form ula;
other plans provide no such deduction.
Topics discussed in this chapter are illustrated by clauses or por
tions of clauses excerpted from the agreement or an accompanying
descriptive booklet. The latter are indicated by a footnote. Com
plete pension plans from both sources are set forth in the appendix.
Specimen Benefit Plans
1. Contributory Insured Annuity Plan: Yearly Annuity Equals 50 Percent of
Employee's Total Contributions. Retirement at Normal Age, or Earlier
With Reduced Annuity; on Separation Before Eligible for Annuity, Choice
Between Refund and Deferred Annuity; Lump-Sum Refund of Employee
Contributions to Survivor if Employee Dies Before Retirem ent; on death
o f Annuitant, Survivor Receives Lump-Sum Refund of Unexpended Balance
of Contributions, or Annuity if Annuitant Elected Reduced Amount for
Himself. No Credit for Prior Service to Employees Not Joining When
Eligible. Additional Pension at Employer's Cost for Service Prior to
Effective Date of Plan for Eligible Employees
Effective date: The plan became effective June 1,1942.
COLLECTIVE BARGAINING PROVISIONS
104
MEMBERSHIP
An employee may become a member of the plan on the first day o f the month
after the following conditions have been m et:
(a) He has been in service at least 5 years.
(b) He is under 64% years of age.
An eligible employee may become a member o f the plan by signing the card
provided for that purpose. Each member will receive a certificate o f his
membership in the plan.
An employee who does not become a member of the plan when first eligible
may do so at a later date. In such a case, membership will commence on the
first day of the month after the card is signed, and he will receive no retirement
annuity or other benefits for service before that date.
RETIREMENT DATE
The normal retirement date is the first day o f the month coinciding with or
next following the 65th birthday. Retirement annuity payments commence on
the normal retirement date and continue as long as the member lives.
With the consent of the company, a member may retire before the normal
retirement date on a reduced amount of retirement annuity.
A member will not be permitted to remain in service after the normal retire
ment date except with the special consent of the company. If a member is
permitted to remain in service after the normal retirement date, his and the
company’s contributions will stop and retirement annuity payments will com
mence as if the member had actually retired on the normal retirement date.
MEMBERS’ CONTRIBUTIONS
Each member will contribute 2 percent of his earnings up to $3,000 per year.
A member whose earnings are over $3,000 per year will contribute 2 percent
of the first $3,000 of his earnings each year and 4 percent of the excess o f his
earnings over $3,000 each year.
Members’ contributions will be deducted from their earnings each pay day.
In determining the rate of contribution, earnings are computed from January 1
of each year. Thus, a member will contribute 2 percent of his earnings until his
total earnings in each year have reached $3,000 (counting all earnings from
January on, regardless of the date he becomes a member), and 4 percent of his
earnings during the remainder of that calendar year.
RETIREMENT ANNUITY AND COMPANY’S CONTRIBUTIONS
Each member who remains in service until his normal retirement date will
receive a retirement annuity to be paid monthly. The yearly amount o f this
retirement annuity will be 50 percent of the member’s total contributions under
the plan.
The company will pay the excess of the cost of the above retirement annuity
over the member’s contributions. The company will pay considerably more than
one-half of the cost o f this retirement annuity.
The company intends to provide, without cost to the employees, an additional
retirement annuity for each employee who became a member of the plan as of
June 1, 1942, and who had then been in service at least 6 years. The yearly
amount of this retirement annuity will be 1 percent of the member’s yearly rate
of earnings on June 1, 1942, multiplied by the number of completed years of
continuous service, excluding the first 5 years of such service. The company
HEALTH, INSURANCE, AND PENSIONS
105
expects to make payments to the insurance company over a period of years, and
each such payment will be applied to purchase these retirement annuities for
eligible employees in order of nearness to retirement date.
All benefits and contributions under the plan are independent of, and in addi
tion to, benefits and taxes under the Federal social security program.
N ote.— Refer to examples of the amounts of members’ contributions and re
tirement annuities.
DEATH BEFOBE BETIBEMENT
I f a member dies before his retirement annuity payments commence, his bene
ficiary will receive the member’s contributions plus 2 percent interest, compounded
annually, on each contribution from the June first following the date it was paid
to the first o f the month in which death occurs.
A member may change his beneficiary at any time.
BENEFITS AFTEB BETIBEMENT
The regular retirement annuity is paid as long as the member lives after his
retirement date, and if he dies before receiving total retirement annuity payments
at least equal to his contributions with interest, the balance will be paid to his
beneficiary. Interest is at the rate of 2 percent compounded annually, on each
contribution from the June 1 following the date it was paid to his retirement date.
Instead of receiving the benefits described in the preceding paragraph, the
member may elect a reduced retirement annuity to be paid as long as he lives,
with the further provision that all or part of this reduced retirement annuity
will be continued after his death during the remaining lifetime of a person
(known as the joint annuitant) named by him.
A member may elect this form of retirement annuity at any time more than
5 years before his retirement annuity payments commence; otherwise, satisfactory
evidence of his good health will be required.
N ote.—Further information concerning this form of retirement annuity and
the conditions governing its election will be included in the certificate issued by
the insurance company.
TERMINATION OF SERVICE
I f a member leaves the service before his retirement annuity payments com
mence, he may elect one o f the following options:
(а) He may leave his contributions and interest with the insurance company
and receive a retirement annuity beginning at his normal retirement date.
I f he has been a contributing member o f the plan for 10 years and is age 40
or over, the retirement annuity will be that purchased by both his own and the
company’s contributions. The retirement annuity for service before June 1,
1942, will be included only to the extent it has been purchased before the member
leaves the service.
I f he has been a contributing member of the plan for less than 10 years or
is under age 40, the retirement annuity will be that purchased by his own con
tributions only.
(б) He may have his contributions returned to him with 2 percent interest
compounded annually on each contribution from the June 1 following the date
it was paid to the first of the month in which the election is made. The insurance
company will ordinarily make the payment in one sum, but it reserves the right
to spread the payment over 12 months.
106
COLLECTIVE BARGAINING PROVISIONS
I f he elects this option, all of his benefits under the plan will be canceled.
N ote.— A member may not withdraw his contributions or interest as long as
he remains in the service of the company, or borrow against them at any time.
TEMPORARY ABSENCE
A temporary absence authorized by the company (such as sickness, accident,
military service, or leave of absence) will not be considered termination of
service and will be governed as follow s:
(a) I f earnings continue during the absence, contributions by the member
and the company will continue on the basis of such earnings.
(b) If earnings cease, contributions by the member and the company will
cease, but the retirement annuity previously purchased will* not be affected.
Upon resumption of earnings, contributions will be resumed.
If a member’s service is terminated during a period of temporary absence,
the provisions governing termination of service will apply.
ASSIGNMENTS
No assignments of any of the benefits under this plan will be valid or recognized.
CONTRACTS
The member’s rights and benefits under the plan outlined in this booklet,
will be governed by the group annuity contract issued by th e ------ Life Insurance
Company t o ------ Corporation.
FUTURE CHANGES IN PLAN
Any suggested change to the plan shall be negotiated and mutually agreed
upon by the company and the bargaining committee. Also, the insurance com
pany has the right to make changes in the contract after May 30, 1947. No
change or suspension will affect the retirement annuity or other benefits already
purchased by the member’s and the company’s contributions.
I f the plan is discontinued, each member will receive a retirement annuity
to commence at the normal retirement date, including the regular death benefit
provision, but without the right to withdraw contributions. Whether or not
the member remains in the service of the company, the amount o f the retirement
annuity will be that purchased by both the member’s and the company’s contri
butions before discontinuance.
2. Noncontributory Plan: Fifty Dollars Per Month Plus Additional Amount
Geared to Service Over 25 Years. Full Pension Paid A fter 25 Years9 Service
for Voluntary Retirement at 65 for Men, 55 for Women, and When Retired by
Company at Age 68 for Men and 58 for Women. Reduced Pension if Re
tired at 70 A fter 15 Years’ Service or if Permanently Incapacitated. Com
pensation Payment A fter Retirement Deducted From Amount of Pension
The company agrees to continue, during the term hereof, the present pension
plan, the provisions of which are as follow s:
(a) Any employee who has completed twenty-five (25) years ,of continuous
service with the company (and its predecessors) and has reached the age of
sixty-five (65) years (in the case o f female employees the age shall be fifty-five
(55) years) may voluntarily retire upon a regular pension.
(b) The company may require an employee with twenty-five (25) years o f
continuous service to retire on a pension if the employee has reached the age of
sixty-eight (68) years (for female employees the age shall be fifty-eight (58)
years).
HEALTH, INSURANCE, AND PENSIONS
107
(c ) The amount o f the aforesaid pension shall be fifty (50) dollars per month
for employees with twenty-five (25) years of continuous service with an addi
tional one (1) dollar per month for every year of service in excess o f twentyfive (25) years; provided, however, that in no case shall a pension exceed
seventy-five (75) dollars per month.
(d) (i) The company may retire, upon a modified pension, employees coming
within the following classification: Any employee over seventy (70) years o f
age with less than twenty-five (25) years but more than fifteen (15) years of
service may be retired on a pension at the rate o f two (2) dollars per month for
each year of service.
(ii) Any employee who is permanently incapacitated and has had at least
twenty (20) years o f service will be retired on a pension rate of two (2) dollars
per month for each year of service up to twenty-five (25) years with an addi
tional one (1) dollar per month for each year of service in excess of twentyfive (25) years.
Provided, that in the case o f any person who shall hereafter be put on a pen
sion and who is also then or at any time thereafter contemporaneously receiving
workmen’s compensation, employer’s liability, occupational disease or similar
compensation payments from the company or from its insurance carrier, the
amount o f such payments shall be a credit against the amount of pension pay
ment to which he shall be entitled;
3. Noncontributory Plan: Simple Statement of Basic Provisions. Vesting In
cluded. Limited Pension Payments to Beneficiaries if Employee Dies A fter
Age 55 While in Company Employ or Within 5 Years A fter Retirement.
Employees Eligible A fter 5 Years’ Service and Age SO
The company agrees to wholly pay for the pension plan outlined below :
Eligibility: Employees are eligible after 5 years of service and attainment o f
age 30.
Retirement A ge: Normally 65; or earlier with consent o f company, on a
reduced amount o f pension.
Amount of Pension: 1 percent o f basic earnings over $50 a month for each
year o f future service.
Minimum Pension: $25 a month, in addition to social security benefit.
Termination of Service: If an employee terminates service after age 55, with
20 or more years of service, pension benefits already purchased vest with
the employee, payable on retirement.
In Event of Death: I f an employee dies after age 55 while in the employ of
the company, his beneficiary receives a regular monthly payment for 5 years
equal to the pension he would have received if he had retired on the date
of his death.
I f a retired employee dies within 5 years after retirement, his pension
payments are continued to his beneficiary for the remainder of that 5-year
period.
4. Establishment o f Noncontributory Industry Pension Plan. Employers Con
tribute $1 Per Month to Trust Fund Administered Jointly, With Provision
for Umpire To Resolve Disputes. Trustees to Determine “ Nature, Extent,
and Duration” of Pensions. No Payments Made Until Specified Date
Commencing with the date o f this agreement, the employer shall contribute on
the first day o f each month one (1) dollar for each of its employees covered by
108
COLLECTIVE BARGAINING PROVISIONS
this agreement who have passed the probationary period and who have been
employed by it for at least three (3) days, full or part time, during the preceding
month to a trust fund to be known as the Dyers and Printers Pension Fund.
This fund shall be held in trust and administered by four trustees, two to be
selected by the employers who contribute to the fund and two to be selected by
the union. The employer shall submit monthly a list o f employees for whom he
is contributing.
The fund shall be held and used for the sole and exclusive purpose o f providing
pensions upon retirement to the employees of the employer and the employees of
other employers making similar payments and/or to furnish benefits to the family
or dependents of such deceased employees. The trustees shall determine the
nature, extent, and duration of the pensions to be paid employees and/or the
nature, extent, or duration of the benefits to be paid to their families or depend
ents out of the principal or income or both of the fund, provided, however, that
no payments shall be made out of this fund prior to June 1,1950.
The determination of a majority o f the trustees or the umpire hereinafter
mentioned as to the nature, extent, and duration of pensions and/or benefits to
be paid together with the detailed basis therefor when made shall be reduced
in writing and made a part of this agreement.
In the event that a majority of the trustees is not obtained on any issue, the
dispute shall be referred to a neutral person to be called the “umpire” agreed
upon by the trustees or in the event of their failure to agree upon such umpire
within five (5) days, an umpire shall, on petition of either group, be appointed
by the district court o f the United States for the district where the trust fund
has its principal office. The umpire shall decide the dispute and his decision
in writing shall be final and binding upon all parties.
The trustee shall cause the fund to be audited at least once a year and the
statement of the results of the audit shall be available for inspection by interested
persons at the office of the fund, the office of the employer, and the office of the
union.
5. Retirement Allowance Equal to 1 Week's Pay for Each Year of Continuous
Service. Retirement at Age 65 or on Disability, A fter 10 Years' Service.
No Credit fo r Continued Service A fter Age 65
When an employee is retired by the company due to the fact that the employee
has either attained the age of 65 years or has become disabled, (as the direct
result of a compensable industrial accident or occupational disease incurred in
the employ of the company) to the extent that such disability prevents him from
qualifying for any job within the local plant, the employee shall be paid a retire
ment allowance calculated in the following manner provided he had accumulated
10 years or more of continuous service at the time he became 65 years of age or
became disabled as described above.
The retirement allowance shall be 1 week’s pay for each year o f continuous
service. One week’s pay shall be determined by adding the employee’s wages
for the 10 consecutive calendar years during which the employee received the
highest annual compensation from the company and which fell after December
31, 1936, and dividing this sum by 520 to obtain the average weekly earnings for
the ten (10) year period.
A voluntary request for retirement by an employee who has attained the age
o f 65 years shall not affect his eligibility for a retirement allowance There
shall be no obligation on the company to continue the employment of an em
HEALTH, INSURANCE, AND PENSIONS
109
ployee who has attained the age o f 65 years and the attainment o f age 65 by an
employee shall be sufficient cause for retirement by the company.
Should the company continue the employment of an employee after the em
ployee has attained the age o f 65 years, such employee shall not be credited with
additional continuous service after attaining age 65 and his eligibility for a re
tirement allowance shall not increase due to such delayed retirement. Employ
ees who attained the age of 65 years prior to August 18, 1947, shall be credited
with the total continuous service they have accumulated up to August 18, 1947,
in consideration of the fact that prior to this date they did not have the op
portunity to elect to retire and receive a retirement allowance when they at
tained the age of 65 years.
An employee who is laid off but is eligible for reemployment shall not be
eligible for a retirement allowance unless he attains the age o f 65 years while
laid off and eligible for reemployment. (The agreement provides reemployment
rights for a period of two (2) years following the date of lay-off.)
A laid-off employee who refuses an offer of reemployment by the company at
the plant from which he is laid off shall, by such refusal, forfeit all rights to a
retirement allowance should he attain the age of 65 years while still laid off.
An employee who accepts any pension from the company upon completion of
his employment shall not be eligible for a retirement allowance.
There shall be no obligation on the company to reemploy any person who has
been retired in accordance with the terms of this section. I f the company should
rehire such former employee, he shall be hired as a new employee, without credit
for previous service.
An employee who is discharged for just cause in accordance with the terms of
this agreement shall not be eligible for a retirement allowance.
An employee absent on leave for a continuous period in excess o f two (2)
years shall not be eligible for a retirement allowance except in the case of per
sonal illness.
6. Contributory Plan—Pension Equal to $50 per Month fo r Members Since In
ception of Plan; for Others, Monthly Income Based on Humber of Years of
Contributions. Employee Option To Subscribe for Additional Pension
Amounts
The employer and the union agree that the following provisions shall govern
------ Employees’ Retirement Income P lan :
(A ) All full-time employees shall apply for membership in the plan at the
expiration o f their probationary period as stated in article III (A ) [seniority]
of the contract. However, the certificate described in (B ) below and the deduc
tions described in (C) below shall become effective on the following January 1.
(B ) The employer shall issue in the name o f each member a legal benefit cer
tificate, as evidence that the employer will provide the benefits and privileges
stated therein.
(C ) Application for membership in the plan shall be authorization fo r the
employer to deduct the required payment each month from the salary of* the
employee beginning with the month in which the retirement income certificate is
effective and continuing through the month preceding the employee’s sixty-fifth
(65th) birthday. However, should employment continue after the sixty-fifth
(65th) birthday, the deduction of payments for the plan shall continue until
payments have been made for thirty (80) full years or employment terminated,
whichever occurs first.
110
COLLECTIVE BARGAINING PROVISIONS
(D ) Each employee who became a member of the plan at its inception, namely,
April 1, 1942, shall be issued a certificate effective with that date and providing
retirement income of fifty (50) dollars per month for life.
(E ) All other employees shall be issued certificates effective the first day of
the month in which their payments begin and providing a monthly retirement
income based on the number of years payments will be made prior to retirement
according to the scale shown below.
All employees shall also have the privilege of subscribing for additional units
and/or half units. The total monthly maximum pension provided by the original
unit and the additional units shall not exceed the lesser o f :
(a) $150 per month.
(b) One-half of the employee’s current salary.
Years employee
contributes to fund
1
2
—
Monthly pension
Years employee
at retirement
contributes to fund
Monthly pension
at retirement
$0. 50
$14. 00
16
1.00
16.00
17
1. 50
18
— — ______ 18.00
3
2.25
19
_ __ 20.00
4
3.00
20
22. 00
5
- _ _
3.75
21
24.00
6
22
4.50
26. 00
7
_ 5.25
23
___
29.00
8
24
32. 00
_ 6 .0 0
9
7.00
25
35. 00
10
8. 00
26
11
—
- 38.00
27 _
12
9.00
- 41.00
28
_ 10.00
13
44.00
29 _
_
11.00
14
47.00
30
_ ...
15
12. 00
50.00
(F ) No employee shall forfeit or have terminated his membership in th e -----Retirement Plan except as provided by the certificate of membership.
1. Employees granted a leave of absence as stated in article X IV (B ) of
this contract, shall continue as members in the plan unless resignation or death
occurs during such leave of absence. Upon return to work the employee shall
either make up all payments in arrears within one (1) year or shall surrender his
certificate for a new one with a retirement income based on the number o f years
o f contribution according to the scale in paragraph (E ).
2. Employees granted military leave of absence as stated in article X IV (B )
(3) of this contract, shall be considered to have made payments during the entire
period of such leave, except that their cash withdrawal equity shall be based
upon the actual payments made plus interest. If any such employee shall have
left his payments on deposit with the employer, these payments will be applied on
the period of employment starting with the return to work.
3. Any employee granted leave o f absence shall be entitled to continue his pay
ments for his retirement income certificate during such leave if he so wishes.
..
_
_
7. Noncontributory—Age and Death Benefits Based on 1 Percent of Average
Yearly Pay Times Number of Years Worked up to Age 65. Optional Retire
ment at Age 60, Compulsory at 65, Subject to Maximum 5 Years' Extension
Age.—Any employee who has reached the age of 60 may be pensioned. Any em
ployee who has reached the age of 65 must be pensioned, but yearly extensions
may be granted, not to exceed five times.
Sickness pension.— If an employee has a doctor’s certificate, stating it is im
possible for him to work, he may obtain a pension at any time after ten (10)
consecutive years’ employment.
HEALTH, INSURANCE, AND PENSIONS
111
Should he again become able to earn more than $30 per week before age 65 he
must forfeit his pension unless the company refuses him employment. Upon being
reemployed by the company, his pension ceases.
In computing continuous employment and annual pay, time spent in the armed
services or on leave of absence shall be considered as continuous employment, but
if said leaves are more than six months’ duration, that year will not be consid
ered in computing average pay.
Widows and orphans.— Should a pensioned employee die leaving a widow, she
will receive the full pension until she reaches age 65, at which time the amount
of the social security payments which she receives will be deducted from the
pension.
Should the pensioner leave minor children, the full amount of the pension will
be paid until the youngest minor child reaches the age of 18, but the amount of
social security payments paid will be deducted from the pension.
In order to be eligible for this pension the widow must have been married
to the pensioner for at least 10 years previous to his receiving the pension.
Should the widow remarry she forfeits all rights under this plan.
Computation.—The amount of the pension shall be 1 percent of the average
yearly pay for the last 10 years before taking the pension, times the number of
years worked up to age 65; the maximum, however, shall be 40 years.
Bights.—The pensioner shall retain his place on the seniority list. He will
also be granted the right to live in company houses as long as he pays rent, and
have the same privileges when purchasing coal, etc., as the other employees.
8. Contributory Plan—Employee Contributes 2% Percent of Current Earnings;
Employer To Bear Remainder of Cost, Including Prior Bernice. Pension
Approximately the Bum of 1 Percent of Average Monthly Earnings in Each
Year of Bernice. One-Year Bernice Eligibility Requirement
(а) Present hourly paid employees who have completed 1 year of service will
be eligible for membership in this plan, provided males have not reached age
65 and females have not reached age 60.
(б) Normal retirement date will be the first of the month following employee’s
appropriate birthday.
(c) Contribution and amounts of retirement income.
(1) Beginning at normal retirement date, each eligible employee will
receive a monthly life income equal to one (1) percent o f current monthly
earnings for each year of service rendered while in the plan. The current
monthly earnings will be figured on the basis of forty (40) hours per week
times the basic hourly rate.
(2) Towards this benefij, each eligible employee will make monthly con
tributions equal to two and two-thirds (2% ) percent of current monthly
earnings, while the employer will contribute the necessary balance.
The foregoing is, in substance, the pension plan as compiled by t h e ------ In
surance Company, a copy of the prospectus upon which the pension plan o f the
company is to be based is attached hereto and made a part hereof, known as
Plan Two.
The foregoing has reference to future service. The following has reference
to past service. The company hopes and expects to provide, out of current earn
ings, retirement benefits equal to one (1) percent per year o f past service.
It is the hope and desire of all the parties hereto that this pension plan can be
put into operation beginning July 1, 1948.
112
COLLECTIVE BARGAINING PROVISIONS
9. Percentage Formula in Computing Pension Amount Varies With Service at
Retirement Age. Deductions for Social Security Benefits and Annuity Payments Under Insured Annuity Plan
A. Every employee covered by this agreement who has been continuously in the
service of the company for twenty (20) or more years shall be eligible upon at
taining age sixty-five (65) to a monthly pension computed as follow s:
One and one-half (1 % ) percent of his normal monthly earnings multiplied by
his years of service.
From the amount so computed shall be deducted:
(1) Any benefits to which the employee is entitled under the Social Se
curity Act of 1938.
(2) Any benefits to which the employee’s wife is entitled under the Social
Security Act. If she has not attained age sixty-five (65) at the date of the
employee’s retirement but will attain that age within the 3-year period im
mediately following, the wife’s benefits shall be deducted, beginning with
the month following that in which she becomes eligible therefor.
(3) Any annuity payments which have accrued to the employee’s benefit
under the annuity plan underwritten by t h e ------ Life Insurance Company
as evidenced by the certificate issued to the employee.
The balance of the amount originally computed after deduction of the amounts
determined in paragraphs (1 ), (2 ), and (3) above shall be paid monthly by the
company to the employee during the life of this agreement.
B. Every employee covered by this agreement who has been continuously in
the service of the company for ten (10) years but less than twenty (20) years
shall be eligible upon attaining age sixty-five (65) to a monthly pension computed
as follow s:
One and one-quarter (1% ) percent o f his normal monthly earnings mul
tiplied by his years of service.
That portion of the total pension to be paid by the company shall be de
termined as described in part “A ” of this section.
C. Any employee who has less than ten (10) years of service at the time he
attains age sixty-five (65) shall not be eligible to any pension from the company
but will receive only such benefits as have accrued under the annuity plan and
the Social Security Act.
D. For the purposes of this section “normal monthly earnings” shall be de
termined as follow s:
Earnings for regularly scheduled workweek, calculated in accordance
with appropriate section of this agreement* multiplied by 52 and divided
by 12.
E. Any employee who has failed to contribute to the annuity plan under
written by th e ------ Life Insurance Company and offered by the company during
any period subsequent to July 1,1933, when he was eligible to do so, shall have
that portion, if any, of the pension which the company has agreed to pay reduced
by an amount equal to the annuity which would otherwise have accrued during
such period.
Contractual Obligations
A number of agreements pledge the employer to institute a pension
plan or to negotiate or consult with the union on the establishment
HEALTH, INSURANCE, AND PENSIONS
113
or revision o f such a program. Others bring an existing plan or the
parties’ agreement in principle as to the substance of the plan within
the scope o f the agreement. Sim ilarly, some agreements pledge the
employer to continue an existing plan for the duration of the contract.
Modifications o f existing benefits are usually permissible only with
union consent or after union consultation. In contrast, some agree
ments emphasize the noncontractual character of the plan or reserve
to the employer the right to m odify or discontinue it.
10. Mutual Understanding on Pension Plan Made Part of Agreement
The understanding between the company and the union referred to in article
X X of the agreement between the company and the union effective August 20,
1947, has now been carried out by the offer of a “Pension Plan for Hourly Paid
Employees o f ------ Company effective June 1, 1948.” It is understood that this
plan pertains to all the company’s hourly paid employees, including those repre
sented by other unions.
N ote.—Article X X referred to above states: “The understanding between the
company and the union with respect to a pension plan for hourly paid employees
is set forth in Appendix H attached hereto and made a part hereof.”
11. Retirement Plan Approved by Company Stockholders Made Part of Agreement
To the extent that it affects employees covered by this agreement, the retire
ment plan as approved by the stockholders of the company on April 6, 1949, is
hereby made a part of this agreement.
12. Pension Payments Continued fo r Duration of Contract
The existing arrangement whereby payments are made to persons who have
been relieved from active duty will be continued throughout the period o f this
contract. Payments at the rate now being made will be continued to April 1,
1950 [expiration date of agreement], for all persons now receiving them, and
at the rate of $75 per month until April 1,1950, to any persons who may be relieved
from active duty after April 1, 1949, and before April 1, 1950. In each case the
amount received by the employee, as social security, if any, shaU be deducted
from the amount payable to him.
N ote.—The previous agreement also provided pensions o f $75 monthly.
13. Employer Will Continue Retirement Insurance During L ife o f Contract
The company agrees that during the life of this contract it will keep in force
its present insurance contracts providing group life, accident and health, hos
pitalization, accidental death and dismemberment, and retirement income benefits
for employees.
14. Noncontributory Insured Pension Plan To Be Maintained During L ife o f
Agreement Despite Company Right Included in Insurance Certificates To
Change or Terminate Plan for Listed Causes
The company has a group annuity (pension) contract with the [insurance
company] which provides that the company may purchase at fixed rates a pension
for life for each of its employees who has reached the age of sixty-five (65) years
in the case of males and sixty (60) years in the case o f females and who has
been credited with continuous service o f at least twenty (20) years with the
company. The pension is paid monthly. Its annual amount is equal to two (2)
percent of the total compensation paid to the retired employee during such period
114
COLLECTIVE BARGAINING PROVISIONS
of continuous service with the company, with a minimum annual amount of seven
hundred twenty (720) dollars.
Pension premiums are paid by the company. The continuance of the pension
plan is subject to the continued payment of such premiums by the company.
At the initiation o f the plan, certificates were issued to the employees which
included the statement that the company reserves the right to alter or terminate
the plan at any time without further liability to employees except those who
have already reached retirement age. The company made this reservation
because it recognized that future circumstances beyond its control might require
it to alter or terminate the plan. Causes which may lead to such an alteration
or termination are the follow ing:
(a ) New or existing legislation requiring the company, by taxation or other
wise, to contribute toward the cost of existing or additional governmental
social security, pension and/or other social benefit programs designed for purposes
similar to the company’s pension plan;
(b) Legislation prohibiting the deduction of the costs o f pensions from gross
income in determining the company’s tax liability;
(c) Governmental regulations or economic or other conditions adversely affect
ing the company’s earnings; and
( d) Other factors or contingencies which cannot now be foreseen. For the
term of this agreement, however, but without commitment or liability thereafter,
the company agrees not to exercise its right to terminate the present pension
plan or reduce its benefits for any o f the foregoing reasons or for any other reason.
15. I f Insurance Company Cancels Retirement Annuity Plans, Employer to Try
to 01) tain Similar Plans
The company will keep in effect during the life of this contract the retirement
annuity plans now underwritten by ------ Insurance Company and t h e ------- In
surance Company of America, subject to any rights of cancellation given to either
o f said insurance companies by the terms of its policy.
In the event of any such cancellation, the company will use its best efforts to
obtain the underwriting of a similar annuity plan or plans providing equal benefits.
The retirement plans will be reviewed by representatives o f the employees and
of the company, if duly requested by the representatives o f the employees, during
the course of the negotiation of labor agreements for the year 1950.
16. Employer to Continue Present Plan As Long As Contributions Credited for
Income Taco Purposes
The company will continue its present pension plan and group insurance plan
now in force, as long as it is entitled under applicable law, to a deduction for
income tax purposes of amounts contributed thereto.
17. Company to Put Into Effect and Administer Pension Plan, Under Considera
tion, Subject to Internal Revenue Approval and Participation by 75 Percent
of Eligible Employees
Subject to its approval by the Bureau o f Internal Revenue, Treasury Depart
ment o f the United States, and providing that not less than 75 percent o f those
eligible to do so enroll in the plan, the company will put into effect and admin
ister for the benefit o f its employees the retirement plan now under consideration.
18. Compmvy to Offer Signatory Union More Favorable Pension Benefits Agreed
to With Other Unions
Section — , Pension and Benefit Plan, of said collective bargaining agreement
has been agreed upon by the parties with the understanding that should the com-
HEALTH, INSURANCE, AND PENSIONS
115
pany and any other labor organization in th e ------ division enter into a collective
bargaining agreement which accords pension and benefit plan treatment more
liberal or favorable than that presently in effect, after taking into account the
other provisions of such agreement, including any relinquishment by such other
organization of benefits presently in effect, then the company will offer to the
[union] pension and benefit plan treatment which is similarly more liberal or
favorable, in order to provide similar treatment for the employees for whom the
[union] is the collective bargaining representative.
19. No Reduction in Benefits or Privileges Without Union Consent
During the term o f this agreement, no change may be made without the consent
of the union in the existing plan for Employees’ Pensions, Disability Benefits, and
Death Benefits which would reduce or diminish the benefits or privileges pro
vided hereunder.
20. Advance Discussion With Union B efore Changes Put Into Effect
Studies have been made from time to time in connection with the contributory
plan for annuities which was inaugurated on January 1, 1936. In the event
any changes are made in the contributory plan for annuities within the next
contract year, the company, without waiving its rights under the plan, will discuss
such proposed changes with the union before putting them into effect.
21. Noncontributory Plan: Joint Union-Management Study of Problems Created
if Company Obligates Itself to Maintain Present Retirement Plan Without
Change
By reason of the pending proposals as to legislation, both Federal and State,
with respect to welfare benefits, particularly Federal social security benefits,
and in the light o f the uncertainties of the legal position o f t h e ------ Company
if it made a firm obligation to maintain all present provisions in the existing
retirement plan without change, modification or alteration, therefore, the union
and th e ------ Company agree and undertake as follow s:
{a) The union and th e ------ Company will jointly study and examine the legal
and actuarial effect of making contractual the existing retirement plan and will
consider and consult upon possible changes in such plan, by means of a committee
composed o f representatives o f both parties, which will make its report to the
parties promptly, at which time the parties will consider such findings and con
clusions for the purpose of possible further action.
(b) Joint efforts will be made to obtain determinations from appropriate
agencies including the Public Service Commission as to the legal effect of agree
ment to maintain the existing retirement plan without change, modification or
alteration.
(c) Pending and subject to such definitive ascertainment, t h e ------ Company
will continue the tables of benefits and qualifications of employees in the existing
retirement plan without change, modification, or alteration.
N ote.— This agreement covers a public utility; therefore the reference in the
third paragraph to the Public Service Commission.
22. Plan is Not Part of Contract
The company has announced various benefit plans for its employees, which
expressly are not made a part o f this agreement. Under the provisions set forth
in these plans the company expresses its purpose to give its employees the benefits
therein outlined until and unless the company, in its own judgment, sees fit or is
required by law to modify or terminate any one or all of said plans.
116
COLLECTIVE BARGAINING PROVISIONS
23. Employer Reserves Right to Modify or Discontinue Plan
The employer has voluntarily put into effect as of December 1, 1944, the Em
ployees' Retirement and Pension Plan of the ------ Company for the exclusive
benefit o f its employees and their beneficiaries. This plan provides death bene
fits as well as pensions for the employees. The plan has been placed in effect
and has received Treasury Department approval, and has received the approval
o f stockholders of the employer. It is the intent o f the employer to continue
the plan in effect in substantially its persent form. However, it reserves to
itself the unrestricted right to modify, amend, or discontinue the plan at any time.
24. Booklet Outlining Pension Plan Attached to but Not Part o f Agreement
T h e ------ Company’s retirement and group insurance plans, in effect as of
October 31, 1948, are as set forth in the contracts which the —— Company has
with the [insurance company] and th e ------ Insurance Company. An outline of
each of these plans is in the booklet form which is attached to but is not a part
of this agreement and is provided only for the purpose o f information to the
employees of th e ------ Company.
25. Union May Request Negotiations if Formal Plan Not Established Withm
1 Year. Present Informal Program To Continue
Pension retirement practices of the [company] shall be in accordance with
past custom until a formal pension plan is established. Negotiations for such
a plan may be instituted if such a program is not established within a year.
N ote.—This is a 2-year contract.
26. Negotiations To B e Continued on Pension Plan
Negotiations and research will continue on the pension plan until an agreement
is reached.
27. Negotiations on Setting up “ Trusteed Pension Reserve F und” but Eligibility
Requirements, Benefit Amounts, and Contributions To Be Governed by
Existing Plan
Eligibility requirements and amount of retirement allowance in case o f re
tirement, and eligibility requirements and amount of disability allowance in
case of total and permanent disability for regular employment for hire, and the
amounts to be contributed by the employees and by the [employer], shall be in
accordance with and governed by the terms and conditions of the retirement
allowance plan agreement, as amended, now in effect, or any amendments thereto
or revisions thereof hereafter agreed upon.
Notwithstanding any of the foregoing pension provisions, it is agreed that the
negotiations between the parties hereto with respect to the setting up o f a
sound trusteed pension reserve plan for the employees covered by this agreement
will be resumed and continued as expeditiously as practicable, immediately
following the signing o f this agreement.
28. Employer To Consider Establishment of Contributory Plan
The employer agrees to take under advisement the possibility of the installa
tion of a cooperative pension plan, whereby the employees would contribute
equally in the cost and maintenance o f such a plan, and whereby the employees
would be eligible for pension payments, on retirement, after twenty (20) or more
years of service, such payments to equal up to fifty (50) percent o f the em
ployees retiring regular weekly pay, and to continue until the deaths of the
employees. The employer, between now and the expiration of this contract
HEALTH, INSURANCE, AND PENSIONS
117
will advise the contents of such plan, if any that can, economically, consistent
with the ability of the employer be offered for this purpose.
29. Company Will Discuss Contributory Plan Proposed by Union During L ife of
Agreement
The company will discuss any pension plan proposed by the union at any time
during the life of this contract. It is the intent of this clause to allow the
union ample time to survey their membership to be able to present a contribu
tory plan to the company for consideration.
30. Employer To Consult With Union on Revised Pension Plan
The company furthermore agrees to consult with the union, with a view
towards the early submission to the [public utilities] commission o f revised
plans for—
(a) The retirement o f employees according to age and length of service, and
(b) Retirement because of physical disability.
Eligibility Rules for Membership in Plan
E ligibility for participation in the pension plan is usually based
upon service, age, and, occasionally, upon union membership require
ments. The service requirements for coverage frequently range as
high as from 2 to 8 years (as compared with 1- to 12-month qualifying
periods prevailing among health and insurance plans). Employees
entering service after specified ages, 45 and over, are sometimes ex
cluded. Some plans do not cover employees until they reach 30 years
of age.
Participation is compulsory in some plans and optional in others.
Some agreements make participation compulsory for new employees
but allow present employees the option to participate or not.
31. All Employees Covered by Agreement Brought Within Plan
All employees covered by this contract are placed under the pension plan dated
January 1, 1913, as presently administered.
Full time union officials shall continue to accumulate credits for their retire
ment based on salary received from the [union].
32. Contributory Plan: Eligibility Requirements: 8 Years’ Service and Minimum
Salary
The advantages of this annuity contract are extended to those who have been
with the [company] for not less than 3 years and whose base pay exceeds $3,000
per year.
N o t e . —A noncontributory pension is payable on the first $3,000 o f an employee’s
annual base pay. One earning more may procure an additional pension by
contributing 1 percent o f the amount by which his base pay exceeds $3,000.
33. Excludes Persons Entering Service “ Over Forty-five Years of Age?'
No person, however, over the age o f 45, who shall hereafter be taken into the
service shall be eligible to the payment o f a pension.
N
o te
.
—This agreement covers public transportation employees.
875403°— 50-----9
COLLECTIVE BARGAINING PROVISIONS
118
34. Membership Compulsory for Eligible Employees
The employer agrees to maintain a pension plan as provided in the schedule
which has been presented each employee. This pension plan requires all eligible
employees to participate.
35. Participation Compulsory for New Employees; Optional for Present Em
ployees
New employees, as a condition o f continued employment, must join the pension
trust when they become eligible therefor.
A joint union and company committee shall be formed to explain the benefits
o f the pension trust to present employees who are not now participants of said
trust, with a view of persuading said employees to become participants. To this
joint committee shall be referred questions relative to either new or old employees
who desire to withdraw from said trust.
36. Contributory Plan: Eligibility Based on 2 Years' Service: Hiring B efore Age
55; Union Membership
All employees as defined above who are members o f the [union] on the ef
fective date hereof, and who hereafter become members, shall come under this
plan and continue as contributing members so long as they are in the employ of
the company, providing their date o f appointment was prior to age fifty-five (55)
and they have completed two (2) years o f continuous service * * *.
N
o te
.
—This is a union shop agreement.
37. Contributory Plan: 5 Years' Set'vice Provided Under Age 69 y2. Participar
tion Optional, but Must Join Plan When First Eligible To Receive
Benefits. Normal Retirement Age Varies Between 65 and 70 According to
Age When First Covered; May Be Deferred With Employer's Consent
Membership in the plan is optional but all eligible employees who desire to
benefit by the minimum retirement provisions of paragraph — , section — , must
become members o f the plan when first eligible.
All employees will be eligible to become members o f this plan on the first
o f December next following the completion of 5 years o f service, provided they
have not then attained age 69^ .
38. Optional Participation by Professional Employees; Compulsory by Non
professional Staff
The employer agrees to participate in t h e ------ Retirement Fund, Inc., for
professional employees and in t h e ------ 5 percent System of the Savings and
Security Plan for nonsecretarial employees o f the [employer] for nonprofessional
employees. The participation of professional staff shall be voluntary. All non
professional employees beginning employment on or after October 1, 1948, must
agree to participate. At the end of three (3) months’ employment, they must
join at the next quarterly date: January 1st, April 1st, July 1st, or October 1st.
The financial obligations for participation on the part o f employer and employee
will be according to the regulations o f the respective funds including pay-roll
deductions.
C omputation of Creditable Service
Service credited toward an employee’s retirement for any cause
is usually stipulated to be continuous from the date of entering the
HEALTH, INSURANCE, AND PENSIONS
119
employer’s service to the date of retirement. I f interrupted only the
last continuous period of service for the employer counts. In in
dustry-wide plans continuity of service is also applicable to the entire
industry. Continuity of service is not generally deemed broken by
authorized leaves of absence, sickness, nonoccupational accident, re
quired m ilitary service, temporary lay-off, or dismissal followed by
reinstatement, but absences for these causes exceeding stipulated
periods may be deducted from the total creditable service.
Service before or after specified ages (for instance, before 30 or
after 65) may or may not be credited. The treatment of service
before the effective date of the plan or in the event of merger also
varies among pension plans.
39. No Break in Continuous Service for Specified Absences and No Deduction fo r
Time Lost. Other Absences in Excess of 3 Years Deducted From Total
Service
The expression “ continuous employment” shall mean employment with the
company continuously without break; however, any absence due to leave of
absence, sickness, injury off of the job, or temporary lay-off on account o f reduc
tion in force, shall not break the continuity of service, but if absence on one or
more of foregoing grounds exceeds three (3) consecutive years, the excess shall
be deducted in computing the length of employment. When service is required
to be performed in any branch of the armed forces of the United States, such
time shall not be deducted. I f a person is re-employed, for the purpose of this
plan, he shall be considered a new employee. In case o f absence due to accident
while on duty, period of discharge, if followed by re-instatement within three (3)
years, leaves of absence while holding office in the [union], or during which no
services were rendered because of strikes or lock-outs, the period of absence shall
not be considered a break in continuous employment and shall not be deducted.
40. Leave of Absence for Union Office Credited Toward Service Necessary for
Retirement Benefits
Any employee on leave of absence from the company and holding office in the
[union] on the effective date of the plan, or any employee who may thereafter
hold office in the [union], shall be eligible for retirement when he becomes 65, or
is 65 years of age, or older, with 20 years o f continuous employment.
41. Employee Guaranteed Benefits on Transfer to an Associated Company With
or Without a P lan2
When an employee is transferred from the company to an associated company
that shall have adopted a pension plan, which, though varying from this plan in
detail to conform to local laws or to meet local conditions, is fundamentally
similar to this plan, this company shall pay to the other company an amount
equal to the actuarially computed liability.
I f any employee shall be transferred from the company to an associated com
pany which shall not have adopted this plan, the company shall guarantee to the
employee the excess, if any, of the benefits herein provided over any to which he
may become entitled as a result of his employment with that company.
2From a descriptive booklet or related material.
120
COLLECTIVE BARGAINING PROVISIONS
42. Date of Last Employment With Company or Predecessor Determines Con
tinuous Service
The period of continuous service shall be counted from the date of last em
ployment with the company, or its predecessors.
43. No Credit for Service Prior to Merger Unless Previous Employer Maintained
a Similar Pension Plan2
I f you were employed by a company or in business which was later bought by
this company, your credit for years of service starts from the moment that com
pany or business was taken over b y ------ company. That was the moment you
entered the employ o f ------ company.
In some cases credit will be given for all years of continuous service in a com
pany or business before the acquisition of that company or business by -----company. The reason for this is that in those cases there already existed a
pension system or some method like it, so that this company is merely following
what its predecessors had already established.
44. Employee Credited With Service for Different Employer Prior to “ Control,
Acquisition "by, or Consolidation" With Present Em ployer2
The terms “ service” and “ in the service” will refer to employment upon or in
connection with any of the [facilities] owned or operated by the [company], and
the service of any employee shall be considered as continuous from the date from
which he has been continuously employed upon such railways, whether prior or
subsequent to their control, acquisition by, or consolidation into the [company].
In computing service, it shall be reckoned from the date since which the person
has been continuously in the service, to the date when retired, eliminating in
the final result any fractional part of a month.
Leave of absence duly granted, suspension or dismissal followed by reinstate
ment within 6 months shall not be considered a break in the continuity of service.
45. Pension Funds Merged if Employer Merges With Another Company Having
a Similar P lan2
That in case of consolidation or merger with another company having similar
employees’ benefit plan, the pension funds o f the companies consolidated or
merged shall be combined.
Qualifications for Benefits
R etirement
Pensions are paid to eligible employees who retire or who are retired
for age, length of service, or a combination o f age and service.
Usually the “normal” retirement age is 65, although in the coal pension
plan it is 60. A lower “normal” retirement age (60) is sometimes set
for women.
Although most plans fix only a “ normal” retirement age with a
“ normal” retirement allowance, others allow earlier retirement at the
employee’s option, but at a reduced pension.
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
121
46. Contributory: Pension at Age 70 Regardless of Service; at 65 With 25 Years’
Service; A fter 25 Years’ Service A fter Aye 65
Any employee under this plan shall become eligible to receive a retirement
allowance:
(1) Upon the attainment of age 65 provided he has 25 or more years o f con
tinuous service; or
(2) Upon completion of 25 years of continuous service after age 65; or
(3) Upon attainment of age 70.
Any employee who has become eligible for retirement benefits under this plan
may elect to retire or may be retired at the option of the company, and upon
such retirement shall be entitled to receive the retirement benefits provided by
this plan.
47. Noncontributory: Combined Age and Service Qualifications fo r Retirement
for Age and for Disability
All officers and employees who have attained the age o f 70 years shall be
retired. Such of them as have been continuously in the service 20 years or more
shall be pensioned.
Motormen, conductors, train collectors, towermen, dispatchers, boat captains
and other deck officers, and marine engineers, who have attained the age o f 65
years, may be retired. Such o f them as have been continuously in the service
20 years or more shall be pensioned if and when retired.
Officers and employees between 60 and 70 years of age, who have been 20
years or more in the service and who have become incapacitated for the per
formance of the duties in which they have been engaged and who cannot be
transferred to other work which they are able to perform, may be retired and
pensioned.
Officers and male employees under 60 years o f age, who have been 25 years
or more in the service, and all female employees, who have been 20 years or more
in the service, who have become permanently disabled, may be retired and
pensioned.
Physical examination shall be made of employees recommended for retirement
for disability who are under 70 years of age, and a report thereof, with the
recommendation of some reputable surgeon to be selected by the board of direc
tors, shall be transmitted to the board o f pensions for consideration in deter
mining such cases.
48. Combined Age, Service, and Disability Requirements: Age 65, 25 Years’ Serv
ice; Age 70,15 Years’ Service; Disability, 15 Years’ Service
All members of [union] shall be entitled to pensions, subject to the following
provisions:
a. Voluntary retirement upon reaching the age o f 65 years with 25 years’
continuous service in the employ o f the company.
b. Compulsory retirement upon reaching the age o f 70 years with not less
than 15 years’ continuous service in the employ o f the company.
c. Retirement due to physical or mental disability after 15 years’ continuous
service in the employ o f the company.
49. Noncontributory: Bus Drivers May Retire Earlier than Other Employees
Without Reduction in Pension
The monthly normal old-age retirement allowance for each eligible em
ployee who retires after ten (10) or more years o f continuous service (in ac
COLLECTIVE BARGAINING PROVISIONS
122
cordance with article IX ) shall be one hundred (100) dollars per month.
retirement allowance shall be paid until his death.
A
r t ic l e
IX.— E
l ig
ib il it y
fo r
O
ld
-A
g e
R
e t ir e m
e n t
A
Such
llo w a n c e
1. Any employee under this plan shall become eligible to receive an old-age
retirement allowance:
(a) Bus operators upon the attainment o f age sixty (60) provided the em
ployee has ten (10) or more years of continuous service immediately preceding
attaining said age;
(b) All other employees upon the attainment of age sixty-five (65) provided
the employee has ten (10) or more years of continuous service immediately
preceding attaining said age.
2. Any employee who has become eligible for an old-age retirement allowance
as provided hereinabove shall be retired at the time he becomes eligible, and
upon such retirement shall be entitled to receive an old-age retirement allowance
as set forth in article V III o f this plan until his death.
50.
Noncontributory Industry-Wide Plan: Age 65; 20 Years9 Continuous Em
ployment in Industry and 1 Year's Employment Immediately Prior to
Retirement With Employer Contributing to Retirement Fund; 10 Years'
Union Membership; Application for Old-Age Benefits Approved by Social.
Security2
An employee shall be eligible for retirement benefits if such—
1. Has attained age 65 years (last birthday), and
2. Has been continuously employed for not less than 1 year immediately prior
to said employee’s application by an employer or employers who during such
period were obligated to contribute to the fund.
For the purpose of this requirement an employee shall be deemed to have been
continuously employed—
{a ) During any calendar year, if such employee was employed by an em
ployer or employers for at least 40 weeks during such calendar y ea r;
or
I f such employee was employed during such calendar year to the extent
that employment by an employer or employers was available to him ; and/or
(b) I f any break or breaks in employment (regardless of duration) were
caused by total disability, resulting from bodily injury or disease followed
by resumption of employment by employer; and/or
(c) I f any break in employment occurred after the attainment of age
sixty (60) years, was continued until the date o f application and was
caused by total disability resulting from bodily injury or disease
and
3. Has been continuously employed in the industry for 20 or more years im
mediately prior to said employee’s application. For the purpose of this require
ment an employee shall be deemed to have been continuously employed.
(a ) During any calendar year, if such employee was employed in the
industry in at least 40 weeks during such calendar year;
or
I f such employee was employed during each calendar year to the extent
that employment in the industry was available to him ; and/or
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
123
(6 ) I f any break or breaks in employment (regardless of duration) were
caused by total disability, resulting from bodily injury or disease, followed
by resumption of employment in the industry; and/or
(c) I f any break in employment occurred after January 1,1945, and after
the attainment of age sixty (60) years, was continued until the date o f
application and was caused by total disability resulting from bodily injury
or disease; and/or
(d) If there was not more than one break in employment o f not more than
24 months’ duration; and/or
(e) I f any break or breaks in employment were caused by service in the
armed forces of the United States;
and
4. Has been continuously a member of the union for 10 or more years im
mediately prior to his or her application for benefits, or has been an employee
of an employer who has been a party to a collective bargaining agreement with
the union for less than 10 years and has been continuously a member o f the
union since a date not more than 60 days after the date of the execution of such
collective bargaining agreement. Continuous membership shall not be deemed
to have been broken, if, after expulsion from the union, an employee has been
reinstated prior to the date of his or her application and the order o f reinstate
ment provided for reinstatement to the rights and privileges o f membership
enjoyed by such employee at the time of expulsion;
and
5. Has made an application for a Federal social security primary old-age
insurance benefit, which application has been approved by the Social Security
Board.
For the purpose of this requirement the Board’s approval shall be deemed
to be dated as of the first day that the employee’s old-age benefits accrued.
Thereupon the following resolution was unanimously adopted by the trustees.
WHEREAS the term “continuous employment” as used in the eligibility re
quirements for retirement benefits adopted by this meeting was adopted with
the intention and for the purpose of providing retirement benefits to retail
clerks associated with the industry for the required period of time notwith
standing periods o f unemployment in the industry as a result o f economic or
other conditions while at the same time denying retirement benefits to retail
clerks who voluntarily severed their association with the industry for periods
in excess of those provided for in the eligibility requirements.
Resolved, That the eligibility requirements shall be administered and applied
in such manner as to effectuate the foregoing purpose and intent.
51. Lump-Sum Severance Pay to Employee Retired Without Pension Under
Existing Company Practice
An employee who voluntarily retires after being certified by the medical
department of [company] as unable to continue work by reason o f old age or
illness shall, if such employee is not granted a pension or retirement income
under the prevailing [company] practice, be entitled to receive in a lump sum
a cash severance payment equal to 2 weeks’ pay for the first full year and 1
week’s pay for each subsequent 6 months of continuous and uninterrupted em
ployment as recognized in the employment records of [company]. In the case
of any such retiring employee there shall be deducted from the severance pay
124
COLLECTIVE BARGAINING PROVISIONS
the amount of any sick leave payments paid to the employee during the im
mediately preceding 12 calendar months.
An employee who voluntarily retires after 25 years of continuous and un
interrupted employment as recognized in the employment records o f [company]
and after having attained the age of 60 years shall, if such employee was over
the age o f 55 years on April 1, 1047, be entitled to receive in a lump sum a cash
severance payment equal to 2 weeks’ pay for the first full year and 1 week’s pay
for each subsequent 6 months of continuous and uninterrupted employment as
recognized in the employment records of [company].
P ermanent D isability
Annuities are provided in some plans for employees who become
permanently and totally disabled before attaining the minimum age
and/or service requirements for retirement. To qualify for benefits,
disabled employees must also have served for a stipulated period,
usually ranging between 5 and 20 years. In view of this high service
requirement, it is not surprising to find that under many plans the
same annuity is paid for disability as for retirement. In other plans,
annuities are reduced according to service brackets or by formula
which are very much like those for voluntary retirement before the
normal retirement age.
I f an employee is eligible both for retirement and disability an
nuities, he receives the former only. Payments of workmen’s com
pensation, unemployment compensation, and other public welfare
benefits respecting the same disabilities are usually offset against re
tirement or disability benefits. Various provisions are found for
suspension or termination of disability payments in cases of temporary
or permanent recovery, either partial or total. During disability
there are certain requirements for physical examinations and for
the reporting of earnings. Sometimes benefit payments must be re
funded for a period in which earnings exceeded a given amount.
(L ife insurance is sometimes payable in monthly installments to
an employee who is disabled prior to a stipulated retirement age.)
52. Noncontributory: Sixty Dollars Per Month Disability Pension A fter 15 Years1
Service. Pension Discontinued if Pensioner Earns, at Work or in Business,
$80 Per Month, or if He Regains Health. No Reference to Origin of
Disability
All employees who have been in the continuous service of company and its
predecessors 15 years or more and, while this provision is in force, become per
manently physically or mentally incapable of performing the work which they
may at that time have been performing in the service of the company, shall be
paid a pension of $60 per month; provided, that, if any such pensioner shall re
gain his health or mental capacity, his pension shall be discontinued and he shall
be restored to his former position with full seniority rights; and, provided fur
ther, if any such pensioner shall become employed at a compensation equal to or
in excess of $80 per month or shall become engaged in business from which he
HEALTH, INSURANCE, AND PENSIONS
125
receives an average net income equal to, or in excess of, $80 per month, his pension
shall be discontinued only for such period of time as his compensation or other
earnings equal or exceed $80 per month, it being understood that, if any such
pensioner fails to disclose compensation or other earnings in excess o f $80 per
month, he is subject to removal permanently from the pension rolls.
N o t e . —The disability benefit is the same in amount as that paid for normal
retirement.
53. Contributory Plan: Disability Benefit Increased $1 Per Month for Each Year
o f Service Above Qualifying Period of 15 Years; Maximum $50 Per Month
Any employee under this plan who, after the effective date hereof, shall become
totally and permanently disabled for regular employment for hire, by reason
of an accident or sickness and before becoming eligible for benefits in accordance
with section — hereof, and who shall at the time of becoming so disabled have had
continuous service with the company for 15 years or more, shall be entitled to
receive a disability allowance from the fund o f forty (40) dollars per month for
the duration of the disability, such allowance to commence on the first day of
the calendar month following the certification of such disability by the committee;
and further provided that the disability allowance shall be increased $1 per
month for each year of continuous service in excess of 15 years, but in no event
shall said disability allowance exceed the sum o f $50 per month.
I f at any time the committee finds the disability was not total and permanent
as hereinabove defined, it shall order discontinuance of the payments provided
for in this section.
N
o te
.
—The normal age retirement allowance is $50 per month.
54. Noncontributory; Identical Amount Payable for Disability and Age-andService Retirement
1. Any employee covered by this plan, who, after October 19, 1948, shall be
come totally and permanently disabled from performing his duties and from
following his regular employment with th e ------ Company due to an occupational
or nonoccupational accident or sickness and before becoming eligible for an
old-age retirement allowance in accordance with article IX hereof, shall be
entitled to a disability allowance for the duration of such disability, provided
that such employee shall have been, at the time of becoming so disabled, in the
continuous service of th e ------ Company for ten (10) or more years immediately
preceding such period of disability.
2. The monthly disability allowance provided for under section 1 of this ar
ticle X shall be the same as the monthly normal old-age retirement allowance
which is one hundred (100) dollars per month.
55. Contributory Plan: Permanent Total Disability From Any Cause A fter
Specified Date. 15 Years' Minimum Service Requirement. Benefit Amount
Is Percentage of Retirement Annuity According to Service of 15, 20, or
80 Y ears2
Any member of the plan who after January 1, 1949, shall become totally and
permanently disabled from any cause for any gainful employment which would
produce earnings substantially less than his normal earnings with the company
at the time of such disability, shall be entitled to receive retirement disability
allowance in accordance with the retirement plan and the following tabulation:
2From a descriptive booklet or related material.
COLLECTIVE BARGAINING PROVISIONS
126
Over fifteen (15) years of service__________ 75 percent of retirement benefits.
Over twenty (20) years of service__________ 90 percent of retirement benefits.
Over thirty (30) years of service--------------- 100 percent of retirement benefits.
If, at any time, the committee finds that the disability o f the member was not
total and permanent, it shall order the discontinuance of the retirement disability
payments to said members.
56. Contributory Plan: Permanent Total Disability After 20-Year Service Require
ment. Fifty-Dollar Monthly Benefit Paid, Same as for Normal Retirement.
Amount Reduced by Monthly State Compensation Benefits. I f Employee
Paid Lump-Sum Compensation Settlement, Benefit Payments Under Plan
Begin Only When Lump Sum Has Been “ Used” at Rate of $50 Per M onth2
Any employee of the company participating in the plan who shall have com
pleted twenty (20) years of continuous employment, and who shall on or after
the effective date of this agreement be determined by the committee to be totally
and permanently disabled for regular employment for hire, shall receive a
disability allowance of fifty (50) dollars per month for life out of said fund,
provided, however, that if such employee is then receiving compensation under
any compensation statute o f the State of Colorado, such employee shall be
entitled to receive a disability allowance representing only the difference between
such monthly compensation and fifty (50) dollars per month; provided further
that if such employee receives a lump-sum settlement under any such compensa
tion statute, such employee shall not be paid a disability allowance hereunder
until such time as such lump-sum settlement has been used at the rate of fifty (50)
dollars per month.
I f at any time the committee finds the disability to no longer be total and
permanent, it shall have the power to order discontinuance of the payments
above provided.
57. Noncontributory Plan: Distinction in Disability Pension Amounts and Service
Requirements fo r Work-Connected and Nomvork-Connected Disabilities
Any employee who has become disabled from working by reason of an accident
arising out of and in the course of employment by the company, if the disability
continues for more than 1 year, shall be entitled thereafter to the following
benefits:
(a) A disability pension for any period o f total disability equal to half
pay and for any period of partial disability equal to one-half of the difference
between full pay and the wages which in the judgment of the committee the
employee is capable of earning.
(b) Reasonable medical, surgical or other attendance and treatment, in
cluding hospital and nurse service, medicines, and apparatus, for such period
as the nature of the injury may require.
A n y employee whose term of service is 10 years or more, who, through sickness
or as the result of an accident not arising out of and in the course o f employment
by the company, is completely disabled, shall during the continuance of disability
after the expiration of such sickness benefits as the company’s rules from time
to time adopted may provide, be entitled to a disability pension payable monthly
and amounting annually to 1% percent of his average annual pay during his term
of service, multiplied by his term of service, provided that, for employees whose
2Prom a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
127
term of service is less than 22 years, there shall be allowed in this computation
the term of service, not exceeding 22 years, which he could attain, if he continued
in service to age 60 for males, or age 55 for females who entered the service
before January 1, 1939, or age 50 for females who entered the service after
that date.
A disability pensioner must permit the committee to make, or have made by a
physician designated by it, such examinations from time to time as the com
mittee may deem necessary, in order to ascertain the pensioner’s condition, and
if his condition and location do not prevent, he shall call on the committee, or its
representative, at such times as it may require, and he shall take proper care o f
himself, following the recommendations of the committee or its representatives.
A disability pensioner who fails to comply with these requirements shall forfeit
his pension.
58. Contributory Plan: I f Eligible for Both Disability and Retirement Benefits,
Retirement Only is Payable
No member shall receive permanent disability benefits and at the same time
be eligible for retirement benefits. I f he is entitled to both, he shall receive the
retirement benefit only.
N o t e . —Disability retirement benefits are graduated according to length of
service. Full disability retirement benefits, equal to normal age retirement
benefits, are paid after 30 years’ service.
59. Contributory Plan: No Duplication of Retirement Benefits, but Receipt of
Disability Allowance No Bar to Retirement When No Longer Eligible fo r
Former
Any employee receiving a disability allowance shall not be eligible to receive a
retirement allowance. I f an employee has been receiving a disability allowance
and the committee finds that such employee is no longer eligible therefor and he is
eligible under this agreement for a retirement allowance, the fact that he has
been receiving disability allowances shall not make him ineligible for retirement
allowances.
60. Severance Pay on Separation for Permanent Disability
2. Upon termination of employment an employee shall receive cash severance
pay in a lump sum, equal to 2 weeks’ pay for every year of continuous service or
fraction thereof, up to a total of 26 weeks’ pay, such pay to be computed at the
highest weekly rate of salary received by the employee during his service with
the [employer].
*
*
*
*
*
*
*
6.
In the event an employee is permanently incapacitated and thereby forced to
resign, the [employer] shall pay full severance pay as specified in section 2 of
this article VI.
D eath B enefits
Lump-sum death benefits, payable in the event a participating em
ployee dies before, or shortly after, retirement, are included in some
pension plans. Under contributory plans these sums usually consist
of refunds of the total contributions of an employee who died before
retirement or o f the unexpended balance of the contributions of a re
tired employee. These refunds may or may not include interest.
COLLECTIVE BARGAINING PROVISIONS
128
Death benefits in the form of survivor annuities usually are paid
only if the employee had exercised his option of a reduced annuity for
himself. In such event the survivor receives an annuity if the em
ployee dies after retirement, but only a lump-sum refund if the em
ployee dies before retirement. In a few plans a separate cash burial
benefit is payable, independent of, and sometimes in addition to, the
lump-sum refund or annuity.
61. Contributary Plan: Lump-Sum Payment, to Beneficiaries or Estate, Equal
to Employee’s Total Contributions, Without Interest. If No Beneficiary
Survives, Employee’s Contributions Become a Part of the Fund2
I f an employee dies before he is entitled to a retirement or a disability allow
ance under this plan, there shall be paid in a lump sum from the fund to such
beneficiary or beneficiaries as he shall have designated or if no beneficiary shall
have been designated by him, then to his estate, a sum equal to his total con
tributions to the fund, without interest
I f none of the above described persons survive such decedent, no person what
soever shall have any right to any refund on account o f the death of such de
cedent, and the amount that would otherwise be refunded shall be and consti
tute a part of the fund hereunder. Payment to any of the persons above de
scribed shall be made as the committee may determine upon evidence satisfactory
to it and without the necessity of proof of probate.
62. Contributory Plan: Beneficiary Paid Amount of Employee’s Contribution,
Without Interest, Less Any Disability Retirement Benefits Paid
In the event of the death o f any employee participating in the plan prior to
reaching retirement age and prior to receiving his first monthly allowance, the
trustees shall pay to the surviving spouse of such employee, if one survives,
otherwise to the executor or administrator of such employee’s estate, the amount
of his contributions, without interest, less any amount which may have been
paid to him by reason of disability allowances.
N
o te
.
— This clause is from the same agreement as clause No. 67.
63. Contributory Plan: No Death Benefits for Death A fter Retirement if Emr
ployee Has Received at Least One Monthly Pension Payment
In the event of the death of any employee participating in the plan after reach
ing retirement age and after having received at least one monthly retirement
allowance, no payment of any amount shall be made to any person whomsoever
on account of contributions made to the fund o f such employee.
N
o te
: This clause is from the same agreement as the preceding clause.
64. Contributory Plan: Lump Sum Equal to Joint Contributions, Plus Interest,
or Survivor Annuity if Lump Sum is Sufficient To Provide Annuity of $120
Per Y ea r2
Should death occur at any time prior to retirement, a cash settlement will be
made equal to the total amount paid into the fund by the employee and by the
corporation plus compound interest at the rate of 2 percent. However, if the
cash settlement exceeds $2,000, and is adequate to provide an annuity of at least
$120 per year, it will be used for the purchase of an annuity for a named bene
2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
129
ficiary in lieu of a cash grant, unless otherwise directed by the employee during
his lifetime.
N o t e .— This provision applies only to the pension plan covering employees
whose base pay is more than $3,000 per year; no such provision appears in the
noncontributory plan covering employees of this company whose base pay is
$3,000 per year or less (and the first $3,000 of base pay of those whose earnings
exceed $3,000).
65. Noncontributory Plan: Lump Sum and Limited Survivor Monthly Annuity
Payments for Either Work-Connected or Nonwork-Connected Death.
Death Benefits Paid for Death B efore or A fter Retirement. No Service
Requirements fo r Work-Connected Death. I f no Dependents and Estate is
Insufficient, Burial Cost Paid for Employee With at Least 2 Years' Service2
In the event o f the death of an employee or a disability pensioner resulting
from an accident arising out o f and in the course of employment by the company,
there shall be payable to his dependents, if a n y:
(a) A death benefit of 6 months’ pay but not exceeding $1,000 and in addition
(b) A pension payable monthly during dependency, but not exceeding 15
years, amounting to 1 percent of the employee’s average annual pay during his
term of service, multiplied by 22 if his term o f service is less than 22 years and
by his term of service if it exceeds 22 years.
In the event of the death of an employee or a disability pensioner resulting
from a cause other than an accident arising out of and in the course of employ
ment by the company, if his term of service shall be as specified below, there
shall be payable to his dependents, if any:
(a) I f the term o f service was 2 years or more, a death benefit o f 3 months’
pay but not exceeding $500 and in addition
(&) I f the term o f service was 10 years or more, a pension payable monthly
during dependency, but for a period not exceeding one-third o f the employee’s
term of service, which pension shall be two-thirds of the disability pension
provided for in section — o f this plan.
In the event of the death o f a retirement pensioner, there shall be payable to
his dependents, if an y:
(a) A death benefit o f 3 months’ pay but not exceeding $500, and in addition
(b) A pension payable monthly during dependency, but for a period not
exceeding one-third o f the employee’s term o f service, which pension shall be
two-thirds o f the amount the pensioner was receiving as provided in section — or
section — o f this plan, as the case may be.
I f there shall be no dependents on the death o f an employee or pensioner with
term of service o f 2 years or more, and if the decedent’s estate is insufficient to
provide for his burial, there may be payable in the discretion of the committee,
the necessary expenses incidental to his death and burial, but not exceeding
$500 nor 3 months’ pay.
The committee shall have complete and final power and discretion to determine
the existence o f dependency to designate which dependent or dependents, if
more than one, shall be paid, and to expend and deduct from death benefits
necessary expenses connected with an employee’s death.
All claims for death benefits and pensions to dependents must be made in
writing within 6 months after the date of the death upon which the claim is based,
otherwise they shall not be considered.
2From a descriptive booklet or related material.
130
COLLECTIVE BARGAINING PROVISIONS
Retirement A ge
Compulsory retirement ages are prescribed by some contracts and
forbidden by others. The age specified often varies by sex. In some
plans an employee who reaches compulsory retirement age without
having served a stipulated period may be separated with a pension;
other plans permit such an employee to work beyond that age in
order to accumulate additional service credit. Some plans, however,
under which the employee may continue in service beyond a compul
sory retirement age with the employer’s permission, do not permit
accrual o f service credit during extension. In establishing a plan,
provision is often made for immediate or gradual retirement of em
ployees then in service who have already attained retirement age, and
for subsequent retirement of others as they qualify by age and service.
66. Employer Reserves Right To Retire or Retain in Employment Employees
Reaching Pensionable Age
Employees pensioned under the pension plan of the company shall not be
considered discharged within the meaning of this article, and the right to termi
nate or to retain in its service employees who have reached a pensionable age
rests solely with the company.
67. Employer Right To Retire Employees at Age 65
As provided for in the employer’s retirement policy and the retirement
income plan for the employees o f the employer, any employee may be retired by the
employer any time after the first o f the month nearest his sixty-fifth birthday.
68. Noncontributory: Employer Option To Retire Employees Before Age 65, at
Reduced Benefits2
The plan however permits the company to retire employees before 65 if in the
opinion of the company it is in the company’s interest to do so. The company
is the sole judge. Such cases, if any, will be very few and we contemplate that
such cases will be almost all cases of total and permanent disability. An em
ployee so retired if under 55 years o f age must have had at least 20 years of
continuous service and if between 55 and 65 years of age must have had at least
15 years of continuous service. Also in figuring the base percentage such an
employee shall be credited with actual continuous years of service at 1 percent
per year if he is between 60 and 65 years of age. If he is under 60 there will be
deducted from the base percentage as so figured one half of 1 percent for each
year that the employee, upon his retirement date, is less than 60 years of age.
69. “No-Discrimination” Clause No Bar to Company’s Right To Retire Employees
at Age 65
There shall be no discrimination by company against any employee because of
union activity, race, color, creed, sex, age, or nationality. Except that this pro
vision does not restrict the right of the company to retire employees at the age
of sixty-five (65) under the retirement plan existing as of the date of this
agreement
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
131
70. Contract No Bar to Retirement o f Employees Aged 65
Nothing in this contract shall be construed to interfere with the normal oper
ation o f the company pension plan, nor the retirement of employees who on or
after January 1,1949, have reached their sixty-fifth birthday.
71. Compulsory Retirement at Age 70; Optional Retirement at Age 65 A fter 15
Years’ Service
All employees in service who reach 70 years of age while this provision is in
force shall be retired from service and shall be paid a pension of $60 per month.
Any employee who reaches 65 years o f age while this provision is in force and
has been in the continuous service of the company and its predecessors 15 years
or more may, at his election, be retired from service and shall be paid a pension
o f $60 per month.
72. Retirement Age 65 for Males, 60 for Females
Management may retire employees in accordance with its established practice
in effect at the time under its retirement income plan. At the present time, it
is management’s practice under that plan to retire male employees at the age of
65 and female employees at the age o f 60.
73. Employer Right To Retire at Age 65, Irrespective of Participation in Pension
Plan
The union hereby agrees that the company shall have the exclusive right to
retire without pension benefits any and all employees reaching their sixty-fifth
(65th) birthday who are not members of the pension plan.
The union hereby agrees that the company shall have the exclusive right to
retire with pension benefits any and all employees reaching their sixty-fifth (65th)
birthday who are members of the pension plan.
N
o te
.—
The agreement contains no other reference to the pension plan.
74. One Year’s Separation Notice for Employees o f Retirement Age Ineligible
for Pension
It is hereby mutually agreed that male employees reaching the age o f 65 and
female employees reaching the age o f 60 who are ineligible for benefits under the
provisions of th e --------- Retirement Trust, shall be given at least one (1) year’s
notice prior to being separated from the pay roll. It is further agreed that such
employees will receive a suitable service award at the time of separation from
the active pay roll.
75. Compulsory Retirement at Age 65 Voided if Retirement Plan Changed and
Benefits Reduced
An employee in the bargaining unit, when he reaches the age of 65, shall be
retired from employment by th e --------- Company. I f at any time after the effec
tive date of this agreement, the present retirement plan is changed and benefits
are reduced then this clause becomes null and void.
76. Involuntary Retirement at Age 65 Subject to Grievance Procedure
The company pension plan, now in effect, shall be continued for the duration o f
this contract and shall be attached hereto and made a part hereof. It is agreed
that employees may retire after becoming sixty-five (65) and that the company
may retire employees after becoming sixty-five (65), subject to the grievance
procedure contained herein.
132
COLLECTIVE BARGAINING PROVISIONS
77. Company Option To Retain Employee Past Retirement Age, Subject to Annual
Review. Such Employees Receive Pension and Other Benefits, in Addition
to Earnings.
Those individuals who have retired as o f January 1, 1949, and those who
hereafter attain the age of 65 whose individual circumstances indicate the need
therefor and who are physically and mentally able to continue working may be
requested to do so for the ensuing year by the board of directors acting on the
recommendation of the plant management.
Those individuals who are requested to remain at work and who elect to do
so will receive their pensions, in addition to their earnings, and as in the case of
all retiring employees, a paid up life insurance policy for $1,000. Other insurance
benefits, if any, will be continued.
Each individual case will be reviewed shortly before the end of the year next
following the date of retirement and if the circumstances still warrant it the
recommendation and request may be renewed.
78. Continued Employment A fter Retirement Age Limited to 1 Year
The normal retirement date for each employee hired after the execution date
o f this agreement shall be the first day of the month following his sixty-fifth
(65th) birthday. In the event that the company agrees to an extension of time
beyond the retirement age, such extension will be made for a specified period of
time and for a period not to exceed 1 year.
N o t e . —There is no specific reference in the agreement to a retirement or pen
sion plan.
79. Compulsory Retirement (W ith Approval of Committee) A fter SO Years’ Serv
ice Regardless of Age, or A fter 25 Years’ Service and Attainment of Age 55
for Men or 50 for Women. Voluntary Retirement A fter 20 Years’ Service
and Attainment of Age 60 for Men or 55 for W om en2
All male employees who have reached the age of 60 years and whose term o f
employment has been 20 or more years and all female employees who have reached
the age of 55 years and whose term of employment has been 20 or more years shall
if they so request, or may at the discretion of the committee, be retired from
active service and, upon such retirement, shall be granted service pensions.
A n y employee whose term of employment has been 30 years or more, or any
male employee who has reached the age of 55 and whose term of employment
has been 25 or more years, or any female employee who has reached the age of
50 years and whose term of employment has been 25 or more years may, if the
case is approved by the committee as appropriate for such treatment, be retired
from active service and, upon such retirement, shall be granted a service pension.
80. Employee May Continue at Work A fter Age 65 if Able To Perform His Duties
During the term o f the agreement of March 15,1949, the employer will consent
to a participant represented by the union remaining in active service after
his normal retirement date unless he is not qualified, physically or mentally
able, or willing to do the work to which he is assigned. Any retirement during
said term without the consent of the participant will be subject to the grievance
procedure outlined in article XVI.
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
133
81. Retirement Schedule Under New Plan: Employees Aged 65 or Over on Date
of Establishment To Be Retired Gradually. Retirement Compulsory on
Attaining Age 65 A fter Fixed D a te2*
T h e ------ Pension Plan applies to you if you are retired by the company on or
after May 1,1946.
*
*
*
*
*
*
*
You will be retired when you become 65 if you are then in the active employ
o f the company.
Many employees were 65 or over on May 1,1946.
We want to give reasonable notice to all employees of their retirement.
Therefore employees who were the following ages on May 1,1946, will be retired
on the following dates:
70
69
68
67
66
65
years or over.
years________
years________
years________
years----------years------------
Oct.
Jan.
Apr.
July
Oct.
Jan.
1,
1,
1,
1,
1,
1,
1946
1947
1947
1947
1947
1948
Employees becoming 65 between May 2, 1946, and March 31, 1948, will be
retired under the plan April 1,1948.
Of course, where retirement is deemed necessary by the company because of
health or other reasons, an employee 65 or over will be pensioned when in the
opinion of the company it is necessary and the above schedule will not be
followed.
Any employee who was 65 on May 1, 1946, or who becomes 65 thereafter, will
be retired immediately if he so requests.
After April 1, 1948, employees will be retired on the first day of the month
following their 65th birthday.
Em ployees 9Benefit Rights on Separation From Service
A n employee who, voluntarily or involuntarily, leaves the em
ployer’s service before he is eligible for retirement, or who drops out
of the plan, often forfeits his pension rights. In some plans, however,
employees are given “ vested” rights and their equities are preserved.
Some plans permit employees, on separation from service, to leave
their contributions in the fund for a deferred annuity payable at
normal retirement age. This deferred annuity is based, in some
instances, on combined employer and employee contributions and,
in others, on the employee’s contributions solely. Other plans pro
vide for payment of a lump sum to the employee at the time of
separation. In general, these lump sums represent only the em
ployee’s contributions, with or without interest. Under some plans
the employee may choose between a lump-sum refund and a deferred
annuity. I f any disability payments have been made, they may or may
not be deducted from the refund or the annuity.
2 From a descriptive booklet or related material.
875403°— 50------10
134
COLLECTIVE BARGAINING PROVISIONS
Some plans permit an employee to terminate his membership and
participation in the plan and to withdraw his contributions while
continuing in the company’s employ. In other plans this is prohibited.
82. Contributory Plan: Lump-Sum Amount Based on Specified Percentages of
Employee's and Employer's Contributions, Plus Interest, Paid on
Separation *
An employee whose active service is terminated at any time otherwise than
by death may elect to take, in lieu of pension consideration, a cash settlement
which shall be 96 percent o f the total amount paid into the fund by the employee,
plus 91.2 percent of the total amount paid by the corporation. Compound interest
at the rate of 2 percent will be added to these amounts.
N o t e . —This provision applies only to the pension plan covering employees whose
base pay is more than $3,000 per yea r; no such provision appears in the non
contributory plan covering employees of this company whose base pay is $3,000
per year, or less (and the first $3,000 of base pay of those whose earnings exceed
$3,000).
83. Contributory: On Termination, Employee Receives His Contributions Plus
Sum Equal to His Contributions Since Specified Date, up to 4 Weeks'
Pay
Upon termination of service, an employee shall receive from the company as
a severance payment, a sum equal to the aggregate amount he has contributed to
the company’s group retirement plan subsequent to November 1,1944. This pay
ment shall be in addition to the employee’s own contribution which may be
refunded to him under the group retirement plan. In no event shall the retire
ment payment exceed a sum equal to four (4) weeks basic workweek’s pay,
based on the straight time wage rate at the time of the termination of service.
Actual retirement under the company’s group retirement plan shall be deemed a
termination of service.
84. Contributory: Disability Annuities Paid Are Deducted From Lump Sum on
Leaving Employer's Service; no Interest Paid
Any employee participating in the plan leaving the company’s service for any
cause other than death or permanent disability prior to reaching retirement age
shall have refunded to him out of the fund the amount o f his contributions,
without interest, less any payment which may have been made to him on account
of disability allowances.
85. Contributory: Option o f Refund or Deferred Annuity Based on Service; no
Reference to Age
A participant leaving the company prior to retirement may withdraw in cash
the total of his own contributions, plus interest, or leave such contributions with
the insurance company to purchase a paid-up annuity. If a participant leaves
the company after attaining 15 years or more of seniority, and does not withdraw
his own contributions, he will be entitled to receive a paid-up annuity based on
both his and the company’s contributions.
86. Noncontributory Plan: No Benefit on Leaving Employer's Service Before
Normal Retirement A g e 2
Persons who leave the service thereby relinquish all claims to the benefits of
pension allowances.
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
135
87. UniovrSponsored, Noncontribnitory Plan: No Benefit for Members Leaving
the Industry or Suspended by Union 2
Except for the life insurance, no benefit is paid * *
left the industry or have been suspended by the union.
*
to members who have
88. Contributory: Employee May Withdraw Contributions While He Remains in
Company's Employ
At any time the employee is discharged, quits, or withdraws from the plan
he will receive all moneys o f his contribution returned to him with 2 percent
interest.
89. Contributory Plan: Employee May Not Withdraw Contributions While Still
Eligible To Participate in Plan. With Company's Consent, Employee
Transferred to Unit Covered by Different Plan May Transfer Service
Credits and Contributions
An employee shall not be entitled to borrow against his contributions to the
plan or to withdraw any part of his contributions to the plan so long as he remains
eligible to participate in the plan; provided that any employee who has become
eligible to the plan and who is transferred to other duties with the company
which do not require him to be a member of the [union] may, with the consent
of the company, withdraw from this plan for the purpose of participating in
such other plan as may be provided for employees not members of the [union], and
in the event of such withdrawal there shall be transferred to such other plan
on behalf of such employee an amount equal to this total contributions to the
plan, without interest, less any amount which shall have been paid to such
employee under the provisions of the plan.
Amount of Pension
Benefit amounts are stated as (1) flat amounts, (2) as a fixed amount
of percentage of income multiplied by years of service, (3) as the
amount purchasable through an insurance policy with contributions
on hand, or (4) the sum of percentages of various portions of the
employee’s average income. Where the amount of the pension is
determined by a formula, a minimum and maximum may be stipulated.
Sometimes the total annuity is shown as the sum of an allowance
based on service since the date of establishment of the plan and a “ prior
service” allowance based on service before that date. For convenience,
some plans include tables showing the monthly amount of annuity
for each year of service according to the employee’s sex and salary
class, and the amount o f his contributions.
Annuities are sometimes subject to deduction of all or part of oldage benefits, workmen’s compensation, unemployment compensation,
and similar State and Federal benefits due the recipient. Some plans
make special payment provisions to cover employees whp have retired
before they are eligible to receive social-security old-age benefits, i. e.,
at age 65. In such cases the monthly payments due under the plan
before age 65 and under the combined plan and social-security benefits
2From a descriptive booklet or related material.
COLLECTIVE BARGAINING PROVISIONS
136
after 65 are leveled out so that the retiring employee w ill receive a
uniform amount throughout his retirement.
U niform A mounts
90. Noncontributory Plan: Uniform Benefit, Compulsory Amount of $60 Per Month
All employees in service on or prior to September 30, 1938, who reach 70
years of age while this provision is in force shall be retired from service and
shall be paid a pension of $40 per month;
Any employee who reaches 65 years of age while this provision is in force
and has been in the continuous service of the company and its predecessors 15
years or more may, at his election, be retired from service and shall be paid
a pension of $40 per month; and
*
*
*
♦
*
*
*
The following amendments to the foregoing shall become effective as of
August 28, 1947:
1. That the provision for pensions in the sum of forty (40) dollars per
month shall be increased to sixty (60) dollars per month.
2. That said section shall include any employee otherwise eligible for
pension, who is on leave o f absence while holding office in the [union] or its
international office.
91. Contributory Plan: Pension Amount Equals $50 Per Month
Each employee o f the company participating in the plan retiring on or after
the effective date in accordance with this agreement shall receive fifty (50)
dollars per month for Ufe.
Retirement allowance shall be paid on the last day o f each month from the
time of actual retirement by the trustees to the persons certified by the com
mittee, and shall cease with the payment due on the last day of the month in
which his or her death occurs.
N
o te
.—
Employees may retire or may be retired at age 65 after 20 years’ service.
92. Eighty Dollars Per Month, Less One-Half Social Security Benefits
The company agrees that every employee covered by this agreement shall
have the right to retire at any time after he shall have completed 25 years of
service with the company and attained the age of 65 years on a pension to be
paid by the company in the amounts and at the time hereinafter provided.
The company further agrees, notwithstanding the provisions contained in
the paragraph next preceding, that every employee covered by this agreement
who shall have completed 15 years o f service with the company and shall have
become permanently disabled from further performing the duties of his job
shall have the right to retire on a pension to be paid by the company in the
amounts and at the times hereinafter provided.
The company agrees that it will promptly grant the application for retirement
of each employee who now is or hereafter becomes eligible for retirement under
the preceding paragraphs of this section 22 of the agreement.
The company agrees that effective as of the first day of January 1949 it will,
from the date of his retirement and for the balance of his natural life, pay
to each employee heretofore or hereafter retired, the sum of eighty (80) dollars
per month, less one-half of the primary benefits, if any, received by said employee
pursuant to the provisions of the Social Security Act.
HEALTH, INSURANCE, AND PENSIONS
137
From the pension paid to any employee by reason of disability there shall
be deducted any payments under the group insurance plan and any payments
made under the workmen’s compensation law.
98. Noncontributory Plan: One Hundred Dollars Per Month. No Deduction for
Other Income, Including Social Security and Workmen’s Compensation
The monthly normal old-age retirement allowance for each eligible employee
who retires after ten (10) or more years of continuous service (in accordance
with article IX ) shall be one hundred (100) dollars per month. Such retire
ment allowance shall be paid until his death.
*
*
♦
*
♦
♦
*
1. Old-age retirement and disability allowances hereinabove provided for are
in addition to any other income which an employee may have and specifically
in addition to any benefits provided for under the Social Security Act and
any benefits received under workmen’s compensation (subject to the limitations
provided for in article X , paragraph 5, of this plan).
2. No old-age retirement allowance shall be granted or paid to employees
having any position or employment witht t h e --------- Company for which they
are remunerated by salary or wages. However, a retired employee receiving
an old-age retirement or disability allowance shall not be barred from engaging
in other lawful employment or business which in the judgment o f the com
mittee is not antagonistic or prejudicial to the interest of t h e --------- Company
or the [union] or its international office, or to the welfare o f the employees o f
the--------- Company or their families.
N o t e . —Employees may retire after 10 years’ service, at age 60 or 65 according
to occupation.
94. Amount Approximately Equal to Social Security Benefits
The company will establish a pension plan effective with date o f this agree
ment, which plan will contain the following eligibility and benefit provisions:
1. This pension plan will apply t o :
(a)
Employees who, having completed 25 or more years in the employ o f
the company, attain in such employment with the company an age o f 65 to
68 years.
(ft) Employees who, regardless of age, having completed 25 or more years
in the employ o f the company and who thereafter are unable to continue
work due to complete disability.
2. This pension plan, will, after retirement at attained age or through dis
ability, provide to eligible employees only, benefits approximately equal to
amounts now payable under the Federal old age benefit plan.
3. The establishment and administration o f this plan shall be the responsi
bility o f the company.
95. Contributory Plan: Normal Monthly Allowance of $50 Is Reduced by $2 for
Each Tear of Service Less Than 25. No Deduction for Other Income,
Including Social Security and Workmen’s Compensation Benefits
The retirement allowance under this plan payable to any employee who retires
after 25 or more years of continuous service (in accordance with section 9 [age
and service eligibility conditions for benefits]) shall be fifty (50) dollars per
month for life.
COLLECTIVE BARGAINING PROVISIONS
138
The retirement allowance under this plan payable to any eligible employee
retired with less than 25 years of service shall be reduced by two (2) dollars per
month for each year o f credited service less than 25 years at retirement.
*
♦
♦
♦
♦
*
*
Retirement allowances are in addition to any other income which an employee
may have, especially in addition to any benefits provided for under the Social
Security Act, and any benefits received under workmen’s compensation.
N o t e .— Employees are eligible for benefits at age 65 (with 25 years’ service) ;
on completion of 25 years’ service after age 65; or at age 70.
Graduated B enefits
96. Noncontributory Plan: Normal Retirement Annual Pension Equals IV2 Per
cent of Average Annual Pay Times Length of Service. Employees Retired
Earlier by Company Receive Specified Percent of Normal Pension Based
on Age at Separation2
An employee shall be entitled to a normal retirement pension, if his employ
ment is terminated:
(a ) By the company at any time after he has attained age 60 if male, or age
50, if female.
(b) At the employee’s own request at any time after he has attained age 65 if
male, or age 55 if female.
The normal retirement pension shall be payable monthly during the life of the
retired employee, and shall amount annually to 1% percent of his average annual
pay during his term of service, multiplied by his term of service.
An employee shall be entitled to an early retirement pension if without fault
of the employee the company terminates his employment:
(a ) when his term of service is 20 years or more, and his age is 50 or more if
male, or 40 or more if female.
(b) when his term of service is 15 years or more, and his age is 55 or more if
male, or 45 or more if female.
The early retirement pension shall be payable monthly during the life of the
retired employee, and its annual amount shall be found by first computing a
normal retirement pension under the terms of subsection 2 of this section, and
then multiplying that by the appropriate percentage taken from the following
table:
Males
Age at retirement
Females
Percentages Age at retirement
100
60
- _____ _
91
59
58
_ _
> 83
57 _
______
____75
56
_
_
_ _____ 69
55
63
5 4 _____ _______ - - 58
58
. - 54
52 ____________
50
51 _______46
50
43
2From a descriptive booklet or related material.
Percentages
50
_ ___
100
49 _
____ ---------93
48
_ _
87
47
. _
—
— 81
4 6 ______
75
45 __
70
44
. _
---------66
43
62
42 — .
__ .
58
41
—
__ 55
40 .
__
------------ 51
HEALTH, INSURANCE, AND PENSIONS
139
97. Contributory Plan: Specified Monthly Pension Amount for Each Full Tear o f
Participation, Based on Salary Class and Monthly Contribution2
(a)
(6)
(c)
M onthly salary
Salary class
___
....
___
___
....
....
__ I
___
....
___
....
....
___
___
....
1__
2__
3__
4__
5__
6__
7__
8 ..
9__
10__
11__
12__
13__
14__
15._
$110 and under__
I l l to $130_____
131 to 150_____
151 to 170_____
171 to 190_____
191 to 210_____
211 to 230_____
231 to 250_____
251 to 270_____
271 to 290_____
291 to 310_____
311 to 330_____
331 to 350_____
351 to 370_____
371 to 390_____
(e)
(d)
M onthly salary M em bers9
monthly
for purposes
of plan
contribution
$100
120
140
160
180
200
220
240
260
280
300
320
340
360
380
$3. 00
3. 60
4. 20
4. 80
5. 40
6. 00
6. 60
7. 20
7.80
8. 40
9. 00
9. 60
10. 20
10.80
11.40
M onthly life
income at nor
mal retire
ment date for
each fu ll year
of membership
$1. 00
1. 20
1. 40
1. 60
1. 80
2. 00
2. 20
2.40
2. 60
2. 80
3.00
3. 20
3. 40
3.60
3.80
For additional salary classes, columns (&) and (c) will increase by multiples
of $20; column ( d) will increase by multiples of $0.60, and column (e ) by mul
tiples o f $0.20.
N o t e . — Salary classes for hourly rate employees will be determined on the basis
o f a normal workweek and base rates of pay #exclusive of overtime. Salary
classes for salaried employees will be determined on the basis of normal monthly
salary only.
98. Noncontributory: Benefit Formula Based on Service, Average Earnings,
Social Security Benefits. Pension Amount Equals 25 Percent o f Average
Monthly Earnings up to $250 Plus 1 Percent of Total Average Monthly
Earnings Times Tears o f Service, Less Social Security Benefits2
Pensions will normally begin at age 65. When you reach that age, you will
be retired unless the company specifically requests you to continue working.
The plan provides for a regular monthly pension, normally payable for life, to
eligible employees based o n :
(а ) Number o f years of service.
(б ) Average monthly earnings since January 1, 1987.
(c) Primary social security benefits.
The amount of pension you will normally receive under the company’s plan
after reaching age 65 will be 25 percent of your average monthly earnings with
this company up to $250, plus 1 percent of your total average monthly earnings
multiplied by the number of years of service with this company, less the amount
of your primary social security benefits as determined in accordance with the
plan * * *.
*
*
*
*
*
*
*
“Average earnings” for salaried employees means the average of your regular
salary including overtime and year-end adjustment paid you by the company
since January 1, 1937. “ Average earnings” for hourly employees means the
2From a descriptive booklet or related material.
COLLECTIVE BARGAINING PROVISIONS
140
average of your regular wages including overtime paid you by the company since
January 1, 1937.
N o t e .—Normal pension paid at age 65 after 10 years’ service.
Reduced amount
payable on termination by employer at age 55 after 15 years’ service.
99. Noncontributory Benefit Formula: i y 2 Percent of First $50 of Highest
Average Monthly Pay During Any 10 Consecutive Years Plus 1 Percent of
Additional Earnings; Minimum Monthly Amount $20; Maximum, $75,
Bubfeet to Increased Pension at Discretion of Board o f D irectors2
The pension allowance authorized are upon the following basis:
For each year o f service, an allowance o f 1% percent o f the first fifty (50)
dollars of the highest average monthly pay o f the officer or employee during any
consecutive 10 years o f service, and in addition, 1 percent o f any excess o f such
highest average monthly pay over fifty (50) dollars; provided, however, that
in no case shall the allowance made be less than twenty (20) dollars, or more
than seventy-five (75) dollars per month, subject to provisions of rule 8 hereof;
thus by way o f illustration: I f an employee has been in the service for 30 years
and his highest average salary or wages for any 10 consecutive years was $80
per month, his pension allowance would be: 1% percentX$50X30=$22.50, and
in addition 1 percent X $30 X 30=$9 or a total of $31.50 per month.
For exceptionally long and unbroken service, with first-class record, or for
other good and sufficient reasons apparent to the board of directors, upon recom
mendation of the board o f pensions, the board o f directors may, at its discretion,
place any officer or employee on the pension list and fix a pension or pensions at
such an amount as may in the judgment of the board of directors be equitable
and appropriate, notwithstanding the maximum provisions o f rule 7.
100. Contributory Plan: Annuity Computed as Bum of Different Percentages of
Earnings Under and Over $8,000 Per Year. Prior Service Benefit ( Sep
arately Computed) Payable to Participants as of Date Plan Was Estab
lished. Quarterly Payments if Monthly Pension Is Less Than $10; Single
Cash Settlement if Monthly Pension Less than $3M42
The annual amount of a participant’s normal retirement income, commencing
on his normal retirement date, will be the sum o f the following:
(a ) Future Service Retirement Income.—The annual amount of a partici
pant’s future service benefit will be equal to six-tenths of the first $3,000
of his earnings during each calendar year while participating under the
plan, plus 1.2 percent o f the excess over $3,000 of such earnings.
(b) Past Service Retirement Income.—For each participant who joined
the plan as o f July 1, 1947 [date plan was established], the annual amount
o f his past service benefit will be equal to one-half of 1 percent of the first
$3,000, plus 1 percent of the excess over $3,000 o f the annual basic rate of
earnings in effect on June 1,1947, increased by 10 percent for those employees
who were participants in one of the three incentive bonus plans, multiplied
by the number of years of seniority as of July 1,1947, exclusive of the first
5 years. Past service benefits are available only to those employees who
participated in the plan as o f July 1,1947.
Each monthly payment o f retirement income will be one-twelfth o f the annual
amount purchased for the participant. The first monthly payment will be pay
able to the participant on his normal (or early) retirement date, if he is then
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
141
living. Subsequent monthly payments will be payable on the first day of each
month thereafter, throughout his remaining lifetime, terminating with the last
monthly payment prior to his death.
I f retirement income payments amount to less than $10 per month, payment
may be made quarterly; a single cash settlement may be made if retirement
income payments will be less than $3.34 per month.
N o t e . — Optional retirement prior to age 65, at a reduced pension, is permitted
under the plan.
1Q1. Noncontribntory Plan: Annual Pension Equals 1 Percent o f Average Annual
Pay for 10 Years, Times Number of Years of Service. Minimum $50 Per
Month, Except in Disability Pension Cases Based on Less Than 20 Years’
Service and in Cases of Pensions Granted to uPart Time99 Employees2
The annual pension’s allowance for each employee retired with a pension on
account of age, length o f service, or disability shall be as follow s:
For each year o f his term of employment, 1 per centum ( 1 %) o f the average
annual pay during the 10 years next preceding retirement, provided, however,
that the committee may, at its discretion, base such pension upon the average
annual pay o f the 10 consecutive years of service during which the retired
employee was paid the highest rate of wages. The minimum pension shall be
fifty (50) dollars per month, provided, however, that at the discretion of the
committee the pension allowance may be less than fifty (50) dollars per month,
but not less than the allowance computed as aforesaid, in the case of pensions
granted under paragraph 1 (c) of this section [retirement for total disability]
to employees o f less than 20 years’ service, and in cases in which, in the opinion
of the committee, the days or hours constituting the employee’s normal service
have not been adequate to constitute full time service, during the number of
years required to establish eligibility to pension in the class under which the
employee is retired.
102. Minimum Monthly Pension, $15; Maximum, $25, Based on Service
Each former employee of the company who retires or who has retired since
January 1, 1939, at the age of sixty-five (65) years or over, who has been an
employee of the company or of th e ------ Company at [city], for fifteen (15) em
ployment years or longer and whose employment has been continuous for the
5 years immediately preceding retirement, is eligible for and shall receive a
pension payable by the company as follow s:
The sum of $15 per month payable on the first day o f each month following
such retirement, plus $1 per month for each employment year to his credit in
excess of 15 employment years up to a total o f 25 employment years. The
minimum pension rate shall be $15 per month and the maximum pension rate
shall be $25 per month. For the purposes of this pension plan:
“ Employment Year” means employment by the company during 12 calendar
months, therefore employment occurring in any calendar month is one-twelfth
o f an employment year o f the person so employed.
“ Continuous employment” means employment by the company without inter
ruption by other employment except self-employment in agriculture.
103. Trusted Contributory Plan To Replace Insured Plan. Accrued Benefits
Under Old Plan Coordinated With New Plan
The parties shall study and the company shall establish at the earliest pos
sible date and if possible by April 1, 1949, an improved pension plan which will
2From a descriptive booklet or related material.
COLLECTIVE BARGAINING PROVISIONS
142
be acturially sound and trusteed, to provide annual benefits o f 1 percent o f the
average gross annual earnings o f each employee for the 5-year period 1943
through 1947, multiplied by the number of years or fractions o f years of service
prior to October 1,1948, and of 1% percent of the gross earnings o f each employee
for the years of continuous service thereafter, provided that a minimum pension
of sixty (60) dollars per month shall be paid to each employee who at the time
of retirement shall have attained sixty-five (65) years o f age and accumulated
twenty (20) years or more of continuous service with the company. Each em
ployee shall contribute three and one-half ( 3 ^ ) percent o f his gross earnings
effective October 1, 1948, and the company shall contribute the remaining cost
thereof. The benefits of such plan shall be applied retroactively to all employees
retiring on and after October 1, 1948. When the pension plan is established,
the existing annuity contract with the [insurance company] will be canceled
and the accrued benefits under that plan will be coordinated with the benefits and
assets o f the new trusteed plan.
D eductions of State or F ederal B enefits F ro m P ension
104- Noncontributory: Unemployment Insurance or Workmen’s Compensation
Deducted
The pensions above provided for shall be reduced by the amount, if any, paid
to any such pensioner fo r unemployment insurance or workmen’s compensation
subsequently to his being placed on the pension roll.
105. Noncontributory: Specified Federal or State Benefits— Old Age, R elief Dis
ability, Sickness—Deducted in Proportion to Employer Contributions
T hereto2
The exact language of the plan about deductions from the company pensions
runs as follows:
“From any pension granted there shall be deducted the amount of any old-age
income primary benefit or any other old-age, relief, disability, sickness or other
payments that are payable by any Federal, State or any other American or for
eign governmental agency, or would be payable if such pensioner were unem
ployed, in the proportion to which this company or any other employer or em
ployers of such pensioner shall have made contributions thereto.
“ The company, if it elects, and upon the approval of the board o f directors,
may deduct all old-age, relief, disability, sickness or other payments payable by
any or all of the above named agencies, or that would be payable if such pensioner
were unemployed, irrespective of whether it or any other employer shall have
made any contributions thereto* except that pensions for service in* or for dis
abilities incurred in the armed service o f the United States or a foreign govern
ment shall not be deducted.
“ I f such deductions equal or exceed the amount o f the company pension as
computed under the plan, no company pension will be payable.”
106- Noncontributory: Company Pension Exclusive of Social Security Benefits2
The benefits under the social security plan are in addition to the pension pro
vided by [the employer].
107* One-Ealf Federal Old-Age Benefits Deducted
Notwithstanding the foregoing provisions in this paragraph, on and after July
1, 1947, the deduction from any pension payable to a [name of employer] pen
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
143
sioner under the terms o f this plan shall be one-half instead o f the full “ primary
insurance benefit” payable under the Social Security Act and the deduction from
any death benefit payable under the terms of this plan incident to the death of
any employee occurring on or after July 1,1947, shall be one-half instead of the
full “ lump sum death payment” made under the Social Security A ct; notwith
standing anything contained in paragraph 27, survivors’ insurance benefits under
the Social Security Act, payable in monthly installments, shall not be deducted
from [employer] death benefits.
108. Noncontributory: One-Half o f Federal Old-Age Benefits Deducted; if Pen
sioned for Disability, Group Insurance and Workmen's Compensation
Payments Deducted
The company agrees that effective as of the first day of January 1949 it will,
from the date of his retirement and for the balance o f his natural life, pay to
each employee heretofore or hereafter retired, the sum of eighty (80) dollars
per month, less one-half o f the primary benefits, if any, received by said em
ployee pursuant to the provisions of the Social Security Act.
From the pension paid to any employee by reason of disability there shall be
deducted any payments made under the group insurance plan and any payments
made under the workmen’s compensation law.
109. Contributory Plan: No Deduction for Social Security Benefits
All benefits and contributions under the plan are independent of, and in addi
tion to, benefits and taxes under the Federal social security program.
C onditions G overning P ay m en t , C ontinuation , or S uspension of
P ension P ayments
110. Pension Is Payable for L ife 2
Service pensions granted to employees shall continue from date of retirement
to death of pensioner.
111. Payments Suspended During Regular Employment With Company Sub
sequent to R etirem ent2
Regular employment under a salary with this company or with any company
with which arrangements for interchange of benefit obligations, as described in
section — o f these regulations, have been made directly or indirectly, shall
suspend the right of a retired employee to pension payments during the period
he continues in such employment.
112. Noncontributory: Payments Suspended During Permanent Employment
Elsewhere A fter Retirement. Payments Are Terminated by Reemploy
ment in the Coal Industry, and on Subsequent Retirement Employee Must
Again Apply and Qualify for Benefits2
An employee must actually retire. Retirement shall be on a voluntary basis,
but an individual shall not be eligible to participate unless he actually retires;
in the event such member-employee shall take up permanent employment else
where than in the coal industry after he has actually retired, pension payments
shall be suspended while such member-employee is so actually permanently
employed elsewhere, but may be reinstated upon such member-employee’s ceasing
to become so permanently employed. However, such member-employee shall not
be entitled to reinstatement in the event he shall be reemployed in the coal
2From a descriptive booklet or related material.
144
COLLECTIVE BARGAINING PROVISIONS
industry after such date o f actual retirement, but may thereafter be eligible for
a retirement-pension upon submitting a new application and meeting all of the
eligibility requirements o f any plan of benefits then in full force and effect, upon
his again actually retiring.
113. Noncontributory: Employment Elsetvhere After Retirement No Bar to Re
ceipt of Pension2
The acceptance of a pension allowance does not debar a retired employee
from engaging in any other business which is not prejudicial to the interests of
this company, but he cannot reenter the service of the company.
114. Contributory: Annuity Not Payable Until Actual Separation From Service;
Payments Are Suspended During Return to Active Service of Employer
I f an employee who is otherwise entitled to receive a retirement allowance
remains in the active employ o f the company, or if such employee following his
retirement returns to the active employ of the company, then and in either of
such events he shall not be paid the retirement allowance to which he is other
wise entitled during the period he is thus actively employed by the company.
Financing the Plan
Methods of financing retirement, permanent disability, and survi
vors’ benefits resemble those for health and insurance in that (1) they
may be financed by the employer alone or jointly by employer and
employees; (2) they may be operated through a fund, a trusteed fund,
or an insurance policy, or financed on a pay-as-you-go basis; and (3)
contributions may be stated as a flat amount, percentages of wages
or pay rolls, or an amount per unit of production. In establishing a
plan the employer sometimes makes a substantial lump-sum contribu
tion, which is followed by other periodic contributions.
In retirement plans the base for periodic contributions is frequently
stated as an annual amount, even though collection may be according
to pay-roll periods. Contributions by both employer and employee
are frequently related to the individual employee’s sex and age on
the date of coverage.
In contributory pension plans it is quite common for the employer
to match the employee’s contributions; sometimes the employer not
only matches the employee’s contributions but in addition provides a
pension covering the employee’s service before the date o f establish
ment o f the system, and therefore before the employee’s contributions
began.
N oncontributory P lans
115. Employer To Pay Entire Cost
All contributions will be made by the company
employees.
2From a descriptive booklet or related material.
*
• *
none by the
HEALTH, INSURANCE, AND PENSIONS
145
116. Fixed Percentage of Covered Pay Roll
The firm shall pay weekly directly to local No. — an amount equal to one (1)
percent o f the total wages paid to the workers covered by this agreement, the
said fund to be used by local No. — as an old-age pension and retirement
fund.
C ontributory P lans
117. Employee Contributes 2 Percent of Monthly Earnings up to $250 and 4
Percent of Any Amount Exceeding $250; Employer Pays Remainder o f
Cost
It has been agreed to between both parties that a retirement plan will be put
into effect whereby all costs will be defrayed by the company with the exception
of two (2) percent of the employee’s monthly earnings. Any employee earning
over $250, the employee will contribute two (2) percent of the $250 and four
(4) percent of any amount over $250 toward the plan.
118. Employer-Employee Matching Contributions Towards Pension Fund
The employer and the union will jointly agree upon a sum of money to be
set aside by each employee each week for the purpose of setting up a fund which
will eventually be used to establish a pension fund. The employer agrees to
deposit in this fund a sum equal to that set aside by the employees as above
stated. The sums so accumulated shall be deposited in an account in t h e -----Bank under the control of both parties. Both parties shall agree in the future
on all features of the pension plan, or any disposition, investment, transfer or use
of these funds.
119. Employee Pays $5 Per M onth; Employer Makes Lump-Sum Contribution of
$10,000, and Matches Employee Contribution. Employee Who Elects
Coverage A fter Establishment of Plan, Though Eligible Earlier, May Par
ticipate by Paying Back Contributions
The company on the effective date of this plan shall make an initial contri
bution to the trustees hereunder o f the sum o f ten thousand (10,000) dollars
and monthly thereafter at the end o f each month; the company shall pay to
the trustees a sum equal to the total amount contributed during such month by
all employees participating in the plan.
All employees in the classifications hereinbefore specified and all supervisors
who elect to participate in the plan shall contribute to such fund the sum
of five (5) dollars per month each, beginning April 1945, as to present employees
and present supervisors who elect to participate therein, and beginning with the
month in which employed as to new employees and beginning with the month
during which they elect to participate as to new supervisors, and continuing
throughout their employment by the company, which contributions shall be de
ducted from the earnings o f the employees by the company and paid to the
trustees hereunder.
Any eligible employee who did not elect to participate in the plan when it was
instituted may later come under the plan by contributing thereto an amount
equal to the aggregate monthly contributions he would have made if he had been
participating in the plan from its inception, and by agreeing to thereafter pay
into the fund $5 per month so long as he is employed by the company. In that
event, the company shall pay into the fund an amount equal to the contribution
made by such employee.
146
COLLECTIVE BARGAINING PROVISIONS
120. Noncontributory and Contributory F eatures; Annuity Based on First $3,000
of Base Salary Paid Without Cost to Em ployee; Additional Limited An
nuity, Based on Excess Over $3,000 Salary, Is Paid if Employee Contributes
1 Percent of Salary Over $3,0002
All regular employees who have been continuously with the [employer] for
not less than 8 years and who, while in the service of the [employer] attain age
65 or over, or who become totally and permanently unable to work before that
age, shall be entitled to receive an annual pension payable monthly, based on the
following plan:
ANNUAL PENSION
(1) One percent of the amount, by which annual base pay immediately prior
to retirement exceeds $600 but not over $3,000, multiplied by the number of years
of such employees’ continuous service, or
(2) One percent of the amount by which average annual earnings (including
basic salary commissions or piecework payments; bonuses; and overtime pay)
for the 5 years immediately preceding retirement exceed $600 but not over
$3,000, multiplied by the number o f years o f such employees’ continuous service.
*
*
*
*
*
*
*
All regular employees whose base pay exceeds $3,000 per year, and who are
eligible for retirement, shall be entitled to receive a pension on the first $3,000
of base pay as stated heretofore. In addition thereto a further pension will be
granted on the average excess o f their annual base pay over $3,000 for the
years (not exceeding 10) immediately prior to retirement during which their
base pay exceeded $3,000.
This additional pension will be in an amount equal to (1 ) one percent of such
average annual excess base pay multiplied by the number of years of such em
ployees’ service, but limited to a maximum annual retirement income of $6,000
or (2) the benefits provided for such employees under the [insurance company]
general group annuity contract, whichever amount may be the greater.
*
*
*
*
*
*
*
EMPLOYEE CONTRIBUTION
To secure the benefits of this [additional] annuity contract, employees are
required to make a yearly contribution of 1 percent o f the excess o f their base
pay over $3,000.
Administration
The administration of retirement, disability, and survivors’ plans
is generally similar to that of health and insurance plans with regard
to the administrative agent, enforcement of contract, application for
and payment o f claims, access to rules and regulations, and continua
tion of the plan for the duration of the contract and its renegotiation.
There appears to be a stronger tendency to assign a name to the plan
and to publish regulations in great detail and in formal language.
These regulations frequently include a set of definitions to assist in
interpreting the rules.
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
147
121. Contributory Plan: Joint Committee Makes Rules and Regulations, Invests
Funds and Approves Expenditures; Trustees Administer the Funds; Em
ployer Keeps Records, Compiles Data, Accepts Applications fo r Retire
ment and Transmits Them to Committee
This plan shall be administered by a committee consisting o f two (2 ) persons
appointed by the [union] and two (2) persons appointed by the company. The
committee shall select from its members a chairman and secretary, and all
members of the committee shall serve without compensation. In the event o f a
tie vote o f the committee, the question or questions in issue shall be submitted
for determination to a fifth person agreed upon by the members o f said com
mittee. In the event that the committee shall be unable to agree upon such
fifth person, then the county judge o f ------ County [State] shall be requested
to appoint the fifth member of the committee, and both parties hereby agree to
such appointment and further agree that his ruling shall be final and binding.
Either party hereto may name alternates to its representatives on the com
mittee, which alternates may serve in the absence of a regular member of the
committee in order that both parties may at all times have two representatives
present at committee meetings.
The committee shall have power to make and enforce such rules and regula
tions not inconsistent with the provisions of this agreement as in its opinion
may be necessary or desirable for the carrying out o f its duties and for the
efficient administration of the plan, and to determine according to the provi
sions herein set forth the eligibility of an employee for retirement under this
plan or for disability allowances.
The committee shall hold not less than one meeting a month, and a majority
of members when present shall constitute a quorum.
The committee shall make an annual report to the company and to the [union],
and shall make such other reports as to the operations of the plan as it deems
advisable. The committee shall have an audit made annually o f the funds
received and disbursed by the trustees. The auditor’s report shall be published
and distributed by the committee among the employees o f the company participat
ing in the plan.
All necessary expenses incurred by the committee shall be certified by the
committee to and paid by the trustees out o f funds held by them.
The committee shall have power to invest such funds as it may determine are
not required currently in securities o f the United States, and all interest on
such investments shall be the property o f the fund hereby created.
The committee shall select two (2) o f its members, one representing the
company and one (who shall be a member o f the [union]) representing the
employees participating in the plan, as trustees for the purpose of administering
the funds contributed by the company and the employees participating in this
plan, whose duties and authority shall be such as are hereinafter set forth.
In the event of the death or resignation o f either o f said trustees, the surviving
or remaining trustee shall have no authority to act, but the committee shall
select a successor, such successor to represent the same party to this agreement
as the deceased or resigned trustee represented.
The trustees shall have no liability as to the correctness o f the amounts to
be paid as retirement allowances or disability allowances, or on account o f
expenses o f administration when such amounts are determined and certified
to the trustees by the committee, nor shall the trustees have any liability as to
the correctness o f the amounts to be received from the company and from the
148
COLLECTIVE BARGAINING PROVISIONS
employees for the purpose of depositing same with the trustees when such
amounts are determined and certified to the trustees by the committee.
If at any time the money and other assets in the hands of the trustees are
insufficient to meet the current [disability and retirement] allowance liabilities,
the trustees shall prorate and distribute such money and assets among the
persons then certified as eligible to receive allowances.
The company shall keep all records, compile all data, accept all applications
for retirement and submit such applications to the committee for certification
and forwarding to the trustees. The committee shall have the right at all
times to call for additional information concerning any or all applications
forwarded to the committee and to examine all records or data pertaining to the
plan.
122. Noncontributory Plan: Joint Representation Including Representative of
Employees Who Are Not Members of the Contracting Union as Well as
Union Employees and Employer
1.
The administration and management of this plan shall be vested in a
“ Retirement Allowance Committee” composed of six (6) members. Three (3)
members shall be appointed by the ------ Company and the ------ Company
shall have the right at any time and for any period to replace any member
appointed by it. Two (2) members shall be appointed by the [union] and the
[union] shall have the right at any time and for any period to replace any
member appointed by it. One (1) member shall represent the employees who are
not members of the [union] and shall be appointed by them or their representa
tives, and such employees or their representatives shall have the right at any
time and for any period to replace the member appointed by them.
123. Noncontributory Plan: Trust Fund Administered by B ank2
Pensions are to be paid from a trust fund to be administered by th e ------ Bank
o f [city].
124. Insured Contributory Retirement Plan Administered by Company According
to Policies Agreed to by Parties
Employees of the company who reach the retirement age of sixty-five (65)
shall retire under the provisions of the employee retirement plan agreed to by the
company and the union. The plan provides for funded retirement benefits in
sured by th e ------ Company of America and administered by the company accord
ing to policies on which the parties are in agreement.
125. Noncontributory Plan: Union Pays Benefits from Employer-Financed Fund
[The union] shall have the sole right to make payments to the members o f the
union of the health benefits and retirement benefits and contributions toward
the vacation benefits and to pay the operating and administrative expenses of
each type of benefit of the health and welfare fund.
126. Joint Committee To Pass Upon Future Applications and Make Recommenda
tions to Company Board of Directors
The company agrees to continue in effect the pensions now being paid to em
ployees who have retired from the company’s service.
A committee on pensions, consisting of an equal number of representatives of the
company and the union, shall pass upon future applications for pensions, within
the framework of existing practices, and make recommendations to the board of
directors of the company concerning such applications.
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
149
127. Union May Represent Members Before Pension and Benefit Committee
The union shall have the right to represent before the pension and benefit com
mittee any of its members.
128. Question of Employer’ s Discrimination or Bad Faith in Administering
Pension, Disability or Death Benefits May Be Subject to Grievance or
Arbitration Procedure Prescribed for Enforcing Remainder of Contract
A ny claim that such benefits or privileges have been diminished or reduced may
be processed as provided in article — , section — , of this agreement, and if not
resolved thereunder by the parties may be submitted to arbitration as provided
in article — , but in any such case any decision or action of the company shall
be controlling unless shown to have been discriminatory or in bad faith and only
the question of bad faith or discrimination shall be subject to the grievance pro
cedure or arbitration.
129. Employer To Furnish Union With Required Data on Benefit Payments
The company agrees, subject to the approval of the Gas Commission of the
City of Philadelphia, to maintain the present schedule of payments for pensions
and separation allowances. The company also agrees to furnish pertinent data
requested by the union in connection with such payments.
130. Descriptive Booklet To Be Issued by Employer
The company and the union have approved the “ Employees Retirement Plan
for [company] and Its Subsidiaries” and which shall become effective on Decem
ber 1,1945.
Details of the plan and trust agreement shall be given to all employees who
become participants.
131. Certificate and Booklet To Be Issued by Insurance Company2
The [insurance company] will issue for each member a descriptive certificate
outlining the provisions of the plan.
At the time of retirement, the annuitant will receive from the [insurance
company] a supplemental certificate, outlining the amount qf the retirement
income and other benefits and the terms of payment.
D is p o s it io n
of
F unds
on
T e r m in a t io n
of
P lan
Should the plan be terminated the funds set aside for pensions may
be disbursed in several ways. Particularly in contributory plans, the
intent is to try to continue the payment of annuities to persons already
retired and, if possible, to pay a lump sum or pensions to those subse
quently reaching retirement age, and to distribute among other mem
bers any excess in the fund over reserves set aside for these purposes.
Noncontributory plans, generally, do not specify how funds are to be
disposed of in the event the plan is discontinued.
132. Contributory, Self-Insured Plan: I f Assets Insufficient, Available Funds To
Be Prorated Among Eligible Pensioners. No Refund I f Plan Terminated;
Pension Payments Continued fo r Pensioners Already Retired
I f at any time the money and other assets in the hands of the trustees are in
sufficient to meet the current allowance liabilities, the trustees shall prorate and
2From a descriptive booklet or related material.
875403°— 50------ 11
COLLECTIVE BARGAINING PROVISIONS
150
distribute such money and assets among the persons then certified as eligible
to receive allowances.
*
*
*
*
*
*
*
In the event of termination of this plan, all funds remaining at that time in
the hands of the trustees shall be used for the following purposes on ly :
(a) To pay monthly retirement or disability benefits to those persons who
may then be drawing such benefits.
(b) To pay expenses provided for in the plan.
(e) To help finance any new retirement or disability plan or fund under
which the employees participating in this plan receive retirement or
disability allowances.
133. Contributory Insured Plan: I f Plan Discontinued, Employee Receives Pen
sion at Retirement Age if Pension Amount Exceeds Specified Sum; Re
ceives Lump Sum Including Employer's Contribution, if Pension Would
Be Less Than Specified Amount2
I f the plan is discontinued and the retirement income is less than $3.34 a
month, the employee may be granted by the [insurance company] a refund of his
own contributions and also a cash value arising from the company’s contribu
tions made in his behalf. If the total retirement income jointly purchased by
his own contributions and the company’s is $3.34 or more a month, the em
ployee will receive a certificate outlining the amount of such retirement income.
134. Contributory Self-Insured Plan: I f Plan Discontinued, Funds Used First
To Pay Benefits to Those Retired and Those Eligible at Time of Abandon
ment. I f Funds Insufficient, Amount of Pension May Be Reduced. I f
Excess Funds Available, Prorated to Employees Not Drawing or Not
Eligible for Pension, in Proportion to Their Contributions
(a ) While it is the intent of both parties to maintain a retirement and dis
ability plan permanently, yet, in the event the plan is abandoned in the future,
the funds in the trust shall be used first to provide retirement and disability
benefits in the amounts and under the conditions provided for in this agreement
for both those already retired, as well as those who are eligible for retirement
or disability allowances at the time of such abandonment.
(b) In the event the funds in the trust are insufficient to provide the benefits
above referred to, the monthly benefits for each of such members shall be re
duced equally by such an amount as is made necessary by such insufficiency of the
funds of the trust.
(c) In the event there are funds in the trust in excess of the requirements for
a full annuity for life for each of the members referred to and provided for in
(a) above, then such excess shall be distributed among the other members of
the plan (i. e., employees other than those in (a) above), in proportion to each
such member’s contribution to the fund.
135. Contributory Self-Insured Plan: Employer Is Not Entitled to Refund on
Termination of Plan. Four-Step Termination Procedure
If, for any reason, the plan is terminated, the company shall not be refunded
any contribution it may have made to the trustee for the plan, and all funds and
assets of the plan remaining in the hands of the trustee shall be liquidated as
follow s:
From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
151
1. Each member of the plan who has contributed to the plan and who is in
the employment o f the company at the time of termination and has not received
benefits from the plan, shall be paid out of the fund an amount equal to the
total amount of his contributions, without interest, if the fund is sufficient to
make such payments.
2. I f any member of the plan, including persons then pensioned and those
drawing disability benefits, has drawn benefits from the plan, the total amount
o f which is less than the total amount of his contributions, he shall be paid the
difference between the total amount of his benefits received and the total amount
of his contributions, if the fund is sufficient to make such payments.
3. I f the fund is not sufficient to make such payments, as set out in (1) and
(2) above, then each member of the plan will be paid prorate the highest per
cent of his contribution the fund can pay, less any benefits he jnay have re*
ceived.
4. I f there is a balance remaining in the hands o f the trustee after carrying
out the above plan, it shall be used to continue the plan in operation until the
fund is exhausted and the plan thereby completely liquidated.
5. The company and the [union] shall continue in existence, by making
necessary appointments and taking any other required steps, a full committee
to carry on all functions herein provided to be performed by the committee
until all funds received by the trustee hereunder have been fully disbursed and
all obligations o f the trustee hereunder have been performed.
136. Noncontributory Industry Plan, Self-Insured: Union May Set Aside Re
serves To Pay Benefits Beyond Expiration Date of Contract
It [the joint board of the union] shall also have the right to set aside sufficient
reserves for ensuing years, including payment of health, vacation, and retire
ment benefits to the members of the union beyond the expiration date of this
agreement.
E f f e c t iv e D a t e
of
P lan
The effective date of a pension plan is extremely significant in
determining both an employee’s contributions and the service on
which his pension will ultimately be based. It is the dividing line
between “membership service,” which is the only service credited
under some plans, and “prior service,” for which the employee may
receive credit without contributing to the fund. I t is also the date
by which some plans distinguish between “present employees” and
“future entrants” in providing immediate or early retirement for
aged employees already in service. In order to build up sufficient
financial reserves, some plans fix one date for the beginning of contribu
tions and membership and a later date on which benefit payments may
commence. A s an alternative to postponement of benefit payments,
reduced annuities may be paid at the beginning of the program for a
limited period, after which fu ll pensions are paid.
137. Contributory Plan: Effective Date of Plan Same fo r Commencement of
Contributions and Payment o f Benefits to Eligible Employees
Effective the 1st day o f April A. D. 1945, there shall be instituted a dis
ability and retirement allowance plan covering all employees o f the company
152
COLLECTIVE BARGAINING PROVISIONS
in the transportation department on April 1, 1945, in the following classifica
tions, v iz : operators, foremen, upholsterers, car repairmen, oilers, car cleaners,
bus mechanics, bus mechanic and servicemen, and all employees who thereafter
become employed in said classifications, and such other employees of the
transportation department of the company as are now or may hereafter become
employed in a supervisory capacity who elect in writing to contribute to and
participate therein within thirty (30) days of the effective date of this plan
in the case of present supervisors, or within thirty (30) days of being appointed
as a supervisor in the case of new supervisors.
*
*
*
*
*
*
*
All employees in the classifications hereinbefore specified and all supervisors
who elect to participate in the plan, shall contribute to such fund, the sum of
five (5) dollars per month each, beginning April 1945, as to present employees
and present supervisors who elect to participate therein, and beginning with the
month in which employed as to new employees and beginning with the month
which they elect to participate as to new supervisors, and continuing throughout
their employment by the company, which contributions shall be deducted from
the earnings of the employees by the company and paid to the trustees hereunder.
*
*
*
*
*
*
*
Each employee o f the company participating in the plan retiring on or after
the effective date in accordance with this agreement shall receive fifty (50)
dollars per month for life.
138. Noncontributory Industry Plan: Employer Contributions To Begm on
Specified D a te; Union To Fix Date for Commencement of Benefit Payments
Beginning with March 31, 1947, the amount of the aforesaid payments shall
be increased to 4% percent, the additional 1 percent to be allocated towards the
payment of retirement benefits, and each member of the [employers' associa
tion] shall be obligated to pay the same to the Joint Board o f Dress and Waistmakers' Union o f Greater New York for the Health and Welfare Fund.
Beginning with March 31, 1947, each member o f the [employers’ association]
shall also pay to the Joint Board o f Dress and Waistmakers’ Union of Greater
New York for the Health and Welfare Fund for retirement benefits 1 percent on
the weekly wages (before deductions for taxes) of the cutters employed in his
inside shop, if he maintains one, and in the shops of his contractors.
*
*
*
*
*
*
*
The parties further agree that the joint board shall also have the right to
adopt rules and regulations in connection with health and retirement benefits,
including eligibility o f members of the union therefor, and to determine the date
when payment of health and vacation and retirement benefits shall commence.
139. Contributory Plan: Pension Amounts Stepped Up A fter First 2 Years in
Newly Established Plan2
Effective as of January 1, 1948, there shall be established a disability and re
tirement allowance plan, covering employees o f ------ Company.
*
*
*
*
*
*
*
On or after January 1, 1949, any member of the plan who has had twenty
(20) years or more of continuous service with the company and has reached the
age o f 65 years, shall have the right to retire and receive the retirement benefits
of the plan in effect at the time of retirement.
2From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
153
The period of continuous service shall be counted from the date of last em
ployment with the company, or its predecessors.
There shall be no retirement or disability benefit allowances during the period
from January 1,1948, to January 1,1949.
A member of the plan who has had twenty (20) years or more of continuous
service and has reached the age of 65 years may continue in the service of the
company by mutual agreement with the company, however, the company shall
have the right, at its option, to require the retirement of any member at any
time after he reaches 65 years of age and completes twenty (20) years o f
service.
1. Any member of the plan 65 years o f age or over, with twenty (20) years
or more of continuous service with the company, or its predecessors, may retire
during the period from January 1, 1949, to January 1, 1950, at a monthly retire
ment benefit of twenty (20) dollars per month during the year 1949, thirty (30)
dollars per month during the year 1950 and fifty (50) dollars per month there
after, exclusive o f Federal social security benefits.
2. Any member of the plan sixty-five (65) years of age, or over, with 20 years of
continuous service with the company, or its predecessors, may retire during the
period from January 1,1950, to January 1, 1951, at a monthly retirement benefit
of thirty (30) dollars per month during the year 1950 and fifty (50) dollars per
month thereafter, exclusive o f Federal social security benefits.
3. Any member of the plan sixty-five (65) years of age or over with twenty
(20) years of continuous service with the company, or its predecessors, may
retire after January 1,1951, at a monthly retirement benefit of fifty (50) dollars
per month for life, exclusive of Federal social security benefits. However, if
any actuarial survey shows that the fund at that time can pay more than fifty
(50) dollars per month, then such larger amount will be paid as the study indi
cates can be made, provided that such payment will be in even dollars.
If as a result of any actuarial study it be determined that the fund cannot make
the full payments contemplated above, then it is agreed that such payments
shall be reduced and payments shall be made in such proportion to the above
as the study indicates to be sound.
140. Plan Effective Upon Approval by U. S. Treasury Department. Prepayments
to Employees To Be Repaid to Company From Pension Trust Fund
A pension fund to be mutually agreed upon by the company and employees will
be put into effect upon the approval of the United States Treasury Department.
Any prepaid payments made to present employees now eligible under proposed
pension plan will be repaid to the company upon completion o f the pension trust
from the pension trust fund.
APPENDIX
T exts
B
it u m in o u s
W
e lfa r e
b y
E
N
Co
a l
R
and
a t io n a l
f f e c t iv e
Selected H ealth , W elfare ,
of
J
B
u l y
Op
er a to r s
e t ir e m e n t
it u m in o u s
1,
F
U
and
un d
Co
a l
n it e d
.
A
W
age
M
A
W
in e
g reem en t
E
and
o rker s
f f e c t iv e
g reem en t
o f
P ension P lans
o f
J
u l y
1948
(D
A
m e r ic a
1, 1947,
a ted
J
(U
a s
u n e
n a f f il
A
.) .
m en d ed
25, 1948),
1948
A.
It is hereby stipulated and agreed by the contracting parties hereto that
there is hereby created a Fund to be designated and known as the “ United Mine
Workers of America Welfare and Retirement Fund.” During the life o f this
Agreement, there shall be paid into such Fund by each Operator signatory
hereto the sum of twenty cents (200) per ton of two thousand (2,000) pounds
on each ton of coal produced for use or for sale. Such Fund shall have its
place of business in Washington, District of Columbia, and it shall be operated
by a Board of Trustees, one of whom shall be appointed as a representative of
the United Mine Workers of America, and one of whom shall be a neutral party
selected by the other two. In the event of resignation, death, inability or un
willingness to serve of the Trustee appointed by the Operators or the Trustee
appointed by the United Mine Workers of America, the Operators shall appoint
the successor of the Trustee originally appointed by them and the United Mine
Workers of America shall appoint the successor of the Trustee originally ap
pointed by it.
The Operators signatory hereto do hereby appoint Ezra Van Horn of Cleveland,
Ohio, as their representative on said Board of Trustees. The United Mine
Workers of America do hereby appoint John L. Lewis of Washington, D. C., as
its representative on said Board of Trustees. It is further stipulated and agreed
by the joint contracting parties that the aforesaid two Trustees shall with all
dispatch designate and name a third and neutral Trustee. Said three Trustees
so named and designated shall constitute the Board of Trustees to administer
the Fund herein created.
In the event of a deadlock on the designation or agreement as to the neutral
Trustee, or any future neutral Trustee, an impartial umpire shall be selected
either by agreement of the two Trustees, representatives of the contracting
parties hereto, or by petition by either of the contracting parties hereto to the
United States District Court for the District of Columbia for the appointment of
such an impartial umpire, all as made and provided in Section 302 ( c ) of the
“ Labor-Management Relations Act, 1947.”
It is agreed by the contracting parties hereto that the Trustees herein provided
for shall serve for the duration of this contract and as long thereafter as the
proper continuation and administration of said trust shall require.
It is agreed that this Fund is an irrevocable trust created pursuant to Section
302 (c) o f the “ Labor-Management Relations Act, 1947,” and shall endure as long
as the purposes for its creation shall exist. Said purposes shall be to make
payments from principal or income or both, of (1) benefits to employees of said
Operators, their families and dependents fo r medical or hospital care, pensions
154
HEALTH, INSURANCE, AND PENSIONS
155
on retirement or death of employes, compensation for injuries or illness resulting
from occupational activity or insurance to provide any o f the foregoing, or life
insurance, disability and sickness insurance or accident insurance; (2 ) benefits
with respect to wage loss not otherwise compensated for at all or adequately by
tax supported agencies created by federal or state law ; (3) benefits on account
of sickness, temporary disability, death or retirement; (4) benefits for any and
all other purposes which may be specified, provided for or permitted in Section
302 (c) of the “Labor-Management Relations Act, 1947,” as agreed upon from
time to time by the Trustees, including the making o f any or all o f the foregoing
benefits applicable to the individual members o f the United Mine Workers o f
America and their dependents; and (5) benefits for all other related welfare
purposes as may be determined by the Trustees within the scope of the pro
visions of the aforesaid “Labor-Management Relations Act, 1947.” Subject to
the stated purposes of this Fund, the Trustees shall have full authority within
the terms and provisions o f the “Labor-Management Relations Act, 1947,” and
other applicable law, with respect to questions o f coverage and eligibility, priori
ties among classes of benefits, amounts of benefits, methods o f providing or ar
ranging for provisions for benefits, investment of trust funds, and all other
related matters.
The aforesaid Trustees shall designate a portion (which may be changed from
time to time) o f the payments herein provided based upon proper actuarial
computations, as a separate fund to be administered by said Trustees herein
described and to be used for providing for pensions or annuities for the members
of the United Mine Workers of America or their families or dependents and
such other persons as may be properly included as beneficiaries thereunder.
It is further agreed that the detailed basis upon which payments from the
Fund will be made shall be resolved in writing by the aforesaid Trustees at their
initial meeting, or at the earliest practicable date that may by them thereafter
be agreed upon.
Title to all the moneys paid into said Fund shall be vested in and remain
exclusively in the Trustees o f the Fund, and it is the intention of the parties
hereto that said Fund shall constitute an irrevocable trust and that no benefits
or money payable from this Fund shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any
attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber, or
charge the same shall be void. The moneys to be paid into said Fund shall not
constitute or be deemed wages due to the individual mine worker, nor shall said
moneys in any manner be liable for or subject to the debts, contracts, liabilities
or torts of the parties entitled to such money, i. e., the beneficiaries o f said
Trust under the terms of this Agreement
The obligation to make payments to the “United Mine Workers o f America
Welfare and Retirement Fund” under this contract shall become effective on
July 1, 1948, and the first actual payments are to be made on August 20, 1948,
and thereafter continuously on the 20th day of each succeeding calendar month
covering the production o f all coal for use or sale during the preceding month.
It is stipulated and agreed by the contracting parties hereto that the Trustee
designated by the United Mine Workers of America shall be the Chairman o f the
Trustees o f the Fund provided fo r in this Agreement.
It shall be the duty o f the Operators signatory hereto, and each o f them, to
keep said payments due said Fund, as hereinabove described and provided for,
current and to furnish to the United Mine Workers of America and to the Trustees
hereinabove designated a monthly statement showing the full amount due here
156
COLLECTIVE BARGAINING PROVISIONS
under for all coal produced for use or for sale from each of the several individual
mines owned or operated by the said Operators signatory hereto. Payments to
said Fund shall be made by check payable to “ United Mine Workers of America
Welfare and Retirement Fund” and shall be delivered or mailed to the office
o f said Fund located at 907 Fifteenth Street NW., Washington, D. 0., or as
otherwise designated by the Trustees.
It is stipulated and agreed by the contracting parties hereto that an annual
audit o f the Fund hereinabove described shall be made by competent authorities
to be designated by the Trustees o f said Fund. A statement o f the results of such
audit shall be made available for inspection of interested persons at the principal
office of the Trust Fund and at such other places as may be designated by the
Trustees.
Failure of any Operator signatory hereto to make full and prompt payments
to the “ United Mine Workers of America Welfare and Retirement Fund” in the
manner and on the dates herein provided shall, at the option of the United Mine
Workers of America, be deemed a violation of this Agreement. This obligation
of each operator signatory hereto, which is several and not joint, to so pay such
sums shall be a direct and continuing obligation of said Operator during the
life of this Agreement and it shall be deemed a violation of this Agreement if
any mine to which this Agreement is applicable shall be sold, leased, subleased,
assigned, or otherwise disposed o f for the purpose o f avoiding the obligation
hereunder.
Action which may be required hereunder by the Operators for the appointment
of a successor Trustee representing them, or which may be required in connection
with any other matter hereunder, may be taken by those Operators who at the
time are parties hereto, and authorization, aproval, or ratification of Operators
representing fifty-one percent (51% ) or more of the coal produced for use or
sale during the calendar year previous to that in which the action is taken shall
be sufficient and shall bind all Operators.
B. It is hereby stipulated and agreed by the contracting parties with respect
to the Fund created by Section 4 ( a ) o f the National Bituminous Coal Wage
Agreement dated May 29,1946 (commonly known as the Krug-Lewis Agreement),
as follow s:
(1) The Operators signatory hereto agree to make payments into said Fund
on or before July 15, 1947, on account o f all coal produced for use or sale up to
and including June 30, 1947, with respect to which payment has not heretofore
been made, such payments to be on the basis heretofore made by said Operators
under the provisions of the Krug-Lewis Agreement.
(2) The Operators signatory hereto hereby renounce and forever release any
and all claim to or interest in payments made into said Fund.
(3) The Trustees appointed pursuant to this Agreement are hereby authorized
and directed to accept into the new trust fund hereby created and to devote for
the purposes hereinabove specified and enumerated, any and all trust funds re
maining unexpended or unobligated in said trust fund so created by Section 4
(a) of the Krug-Lewis Agreement.
(4) The parties hereto agree that the best interest of the beneficiaries of
said trust fund would be served by having all unexpended or unobligated funds
therein transferred as above provided, and agree that the Trustees thereof
should transfer such funds to the new trust fund created by this Agreement.
C. It is stipulated and agreed by and between the contracting parties that
the moneys collected under Section 10 o f the Krug-Lewis Agreement for the
benefit o f the Fund designated as “Medical and Hospital Fund” as provided for
HEALTH, INSURANCE, AND PENSIONS
157
in Section 4 (&) of said Krug-Lewis Agreement shall be transferred to the
Trustees of the “ United Mine Workers of America Welfare and Retirement
Fund” as established by this Agreement and said moneys shall be coordinated
into the aforesaid Fund and be made subject to the stated purposes hereinabove
set out.
It is stipulated, understood and agreed by the contracting parties hereto that
present practices with respect to wage deductions and their use for provision
of medical, hospital and related services shall continue during the term o f this
contract or until such earlier date or dates as may be agreed upon by the United
Mine Workers of America and any Operator signatory hereto.
D.
It is the intent and purpose of the contracting parties hereto that full
cooperation shall by each of them be given to each other, the Trustees named
under this Section and to all affected Mine Workers to the eventual coordination
and development of policies and working agreements necessary or advisable for
the effective operation of this Fund.
*
*
*
*
*
*
*
Resolution No. 8, April 12, 19482
Whereas, under the “ Labor-Management Relations Act of 1947,” Title III,
Section 302 (c) (5) (C),' and under the terms of the “National Bituminous
Coal Wage Agreement o f 1947,” the Trustees of the “ United Mine Workers of
America Welfare and Retirement Fund of 1947” shall designate a portion (which
may be changed from time to time) of the payments herein provided as a sep
arate fund to be administered by the said Trustees herein described and to be
used for providing for pensions or annuities for the members of the United Mine
Workers of America or their families or dependents and such other persons as
may be properly included as beneficiaries thereunder:
Now, therefore be it resolved, that there be and is hereby designated a separate
fund to be used for providing pensions or annuities for the members of the
United Mine Workers of America, or their families or dependents and such other
persons as may be properly included as beneficiaries thereunder; that there be
and there is hereby transferred, set aside and deposited in said Fund, pursuant
to said Act and said contract, the sum of Five Million Dollars ($5,000,000) out
of payments heretofore made to the “ United Mine Workers o f America Welfare
and Retirement Fund of 1947” ; that said Five Million Dollars ($5,000,000) so
hereby transferred, set aside and deposited in said Fund shall be incremented
from payments already made or hereafter to be made to the “ United Mine Work
ers of America Welfare and Retirement Fund of 1947,” from time to time as
upon review by the Trustees experience obtained may require; that said Fund
shall not be subject to or be charged with, or have any obligations created
against it, or be subject to any expenditures or withdrawals of any kind or
character by the Trustees other than withdrawals for the payment o f pensions
or annuities and such withdrawals as may be authorized by said Trustees for
the purposes of investment or re-investment necessary or advisable for the con
servation and protection of said Fund, or for the purposes of the payment of
reasonable administrative expenses, including tax, actuarial and legal studies
if, as and when required, and which may hereafter by the Trustees be duly
authorized.
Be it further resolved, that a pension o f $100 per month shall be paid subject
to amendment or modification at any time as experience in the operation of the
2From a descriptive booklet or related material.
158
COLLECTIVE BARGAINING PROVISIONS
fund may dictate or require, to each eligible and qualified member of the United
Mine Workers of America who on May 29, 1946, attained or thereafter attained
the age of 62 years and who has served 20 years in the coal industry in the
United States and who has retired from service in the bituminous coal industry
in the United States on a date subsequent to May 28, 1946; that the effective
date for the payment o f pensions shall be as of the date that the member of
the United Mine Workers o f America has retired from the bituminous coal
industry in the United States after attaining the age o f 62 years and has served
20 years in the industry; but no member of the United Mine Workers o f America
shall be eligible or qualified for a pension in accordance with the foregoing who
retired from the bituminous coal industry in the United States prior to May
29, 1946.
Be it further resolved, that at the earliest practicable date following the
adoption of this resolution there shall be formulated detailed rules and regula
tions subject to approval by the Trustees, to effectuate the payment o f said
pensions upon the terms and conditions hereinabove specified and in conformity
with reasonable afnd proper administration of said funds.
Be it further resolved, that the Trustees reserve the right to modify, include
or amend the above terms and conditions at any time both as to the amount
of pension payments and the qualifications for eligibility, together with the
right to modify or amend the rules and regulations hereinabove provided for, as
upon review by the Trustees, experience obtained in the operation o f the
Fund may require.
Be it further resolved, that titles to all moneys, paid into or transferred
to the fund herein set forth shall be vested in and remain exclusively in the
Trustees; that said money shall in no manner be liable for or subject to delfts,
contracts, liabilities or torts of the beneficiaries o f such Funds; and that no
benefits or moneys payable from such Fund shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or
charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge,
encumber or charge the same shall be void.
*
*
*
*
*
*
*
Resolution 20 of Trustees of United Mine Workers of America Welfare and
Retirement Fund2
(August 8, 1948)
W h e r e a s : The Trustees of the United Mine Workers of America Welfare and
Retirement Fund of 1947 on April 12, 1948, adopted Resolution No. 8, said
resolution providing for the payment of pensions to members o f the United Mine
Workers of America, and
h e r e a s : The aforesaid resolution provided for the formulation of detailed
rules and regulations to be approved by the Trustees in order to effectuate the
payment of pensions in accordance with the terms and conditions of the aforesaid
resolution,
W
Now t h e r e f o r e b e i t R E S O L V E D the following regulations shall govern the payment
o f pensions to members o f the United Mine Workers of America, and shall tye
subject to amendment, revocation and revision at the discretion o f the Trustees.
2 From a descriptive booklet or related material.
HEALTH, INSURANCE, AND PENSIONS
159
I. E l ig ib il it y
A. Any member of the United Mine Workers of America, who is otherwise
qualified, and who retires from the Bituminous Coal Industry on or
after May 29,1946, shall be eligible for a pension.
B. Proof of Membership
1. The Local Union where applicant is last a member shall certify as
to membership o f applicant.
2. Districts of the United Mine Workers of America shall also certify
as to membership of an applicant.
3. The International Office of the United Mine Workers o f America
shall have final authority to certify as to membership o f applicant.
II. A ge
A. Any member of the United Mine Workers of America who on May 29,
1946, was 62 years o f age or over, or who thereafter attained or
attains the age o f 62 years, and is otherwise qualified, shall be eligible
for a pension.
B. Proof of Age
1. Information shall be obtained from the Social Security Administra
tion records as to the age of applicant.
2. Applicant shall be required to submit documentary evidence o f pro
bative value to establish his age in cases where the Social Security
Administration records are incomplete or are contrary to the age
stated by applicant on the application for a pension.
III. S ervice
A. Any member o f the United Mine Workers o f America who on or after
May 29, 1946, has completed 20 years’ service in the Coal Industry,
and is otherwise qualified, shall be eligible for a pension.
B. Proof o f Service
1. Definitions
(a) A year is twelve (12) calendar months.
(b) A quarter shall be a period of three calendar months ending
on March 31, June 30, September 30, or December 31.
(c) A year of service is one in which applicant:
(1) Worked in a job classified in any National Coal Wage
Agreement for two (2) quarters for an employer in the
Coal Industry and earned a minimum of fifty dollars
($50) in wages in each quarter.
(2) Rendered service for two (2) quarters as an employee o f
the United Mine Workers o f America and is not eligible
for a pension under the United Mine Workers of America
pension plan.
(3) Is credited with two (2) quarters military service.
(4) Was in an employment relation with an employer in the
Coal Industry but did not perform active service for two
(2) quarters due to personal accident, illness, furlough or
leave o f absence.
id) The two quarters mentioned in paragraph (c) above may be
considered a year of service whether or not they are in the
same calendar year, but in no case shall a quarter be con
sidered toward a year of service if it is in any calendar year in
which a year of service has been counted.
COLLECTIVE BARGAINING PROVISIONS
160
2. Evidence
(a) Proof of service may be accomplished in any o f the following
w ays:
(1) Certifications by a Local Union, or by Local Unions, or by
Districts o f the United Mine Workers of America that an
applicant served in the Coal Industry shall be deemed to
be satisfactory proof of service for the period or periods
covered by such certifications.
(2) Statements by persons who have personal knowledge of
applicant's service in the Coal Industry shall be deemed
to be satisfactory proof of service for the period or
periods covered in such statements.
(3) Certified copy or photostatic copy of discharge from a
branch of the Defense Department of the United States
or statement from the appropriate branch of the Defense
Department shall be deemed to be satisfactory proof of
service for the period or periods covered in such dis
charge or statement during which the United States was
engaged in National Emergency or War.
(4) The Director of the United Mine Workers of America Wel
fare and Retirement Fund shall obtain or cause to be
obtained evidence from Social Security Administration
records as to service of applicant in the Coal Industry,
wherever such evidences may be necessary.
IV. R etirem ent
A. Retirement from service shall be when the member of the United Mine
Workers of America permanently ceases work in the Bituminous Coal
Industry.
V. P a y m e n t s
A. The first payment of a pension to a retired member of the United Mine
Workers of America shall be made the first month after the retirement
of pensioner. Upon approval o f a pension, payment shall be made
retroactively to the date of retirement, provided that no payments are
to be made unless retirement was subsequent to May 28, 1946.
B. Commencing with the first payment, the pension shall be payable on the
first day o f each month to pensioner at his last address of record, and
shall be payable during the lifetime of pensioner; provided, however,
such payments shall be suspended for any month that pensioner per
forms compensated services for an employer in the Coal Industry, or
ceases to be a member of the United Mine Workers of America in good
standing, or is mentally incompetent or otherwise incapable o f con
ducting his affairs.
VI. T e r m in a t io n
of pension
A. A pension shall terminate upon the death of the pensioner, the last pay
ment being made for the month in which death occurred.
VII. F a l se
sta t e m e n ts
A. Any applicant for a pension who knowingly and willingly falsifies any
records or makes any false misrepresentations or statements in order
to secure a pension from the United Mine Workers of America Welfare
HEALTH, INSURANCE, AND PENSIONS
161
and Retirement Fund shall be barred from receiving any benefits from
the Welfare Fund.
B e it fu rth er resolved : That the Director of the United Mine Workers of
America Welfare and Retirement Fund is hereby authorized and directed to
activate this resolution in accordance with its terms and conditions and in
accordance with the terms and conditions contained in Resolution No. 8.
Resolution of April 7, 19^92
Resolved, that Resolution No. 8 of the Trustees adopted at a meeting of the
Board of Trustees on April 12, 1948, establishing a pension fund from the Wel
fare and Retirement Fund and determining those eligible to receive such pen
sions be, and the same hereby is, amended to change the eligibility age for
pensions for miners from 62 years of age to 60 years of age, all other requirements
of eligibility therein set forth to remain unchanged. In all other respects the
Resolution of the Trustees adopted on April 12, 1948, is hereby ratified and con
firmed and shall remain in full force and effect.
2 From a descriptive booklet or related material.
B
e th l e h e m
S
t e e l
Co
m pa n y and
U
n it e d
and
P
S
te e lw o r k e r s o f
e n s io n
P
A
m e r ic a
( C IO ) .
I
n sura n c e
ro g ra m
A greement dated October 31, 1949, between B e t h l e h e m S teel C o m p a n y , a
Pennsylvania corporation, and U nited S teelworkers of A m erica , an unincor
porated association.11
The parties hereto hereby agree as follow s:
1. Wherever used herein
(a ) the term “ the company” means said Bethlehem Steel Company;
(b) the term “the Union” means said United Steelworkers of America;
(c ) the term “the Existing Agreement” means the agreement between the
Company and the Union dated April 30, 1947, as amended and renewed
by the agreement between the same parties dated July 17, 1948, and as
further amended by paragraph 11 of this Agreement;
(d ) the term “ Employees” means the employees of the Company who from
time to time during the term of this Agreement shall be in the bargain
ing units which are defined in the Existing Agreement;
(e ) the term “ the Pension Plan” means the Pension Plan of Bethlehem
Steel Corporation and Subsidiary Companies, as amended by paragraph
3 o f this Agreement.
2. The Company and the Union will agree upon a program of social insurance
benefits (including death, sickness and accident and hospitalization benefits) for
all Employees, which shall become effective on January 1,1950, and such program
as it may from time to time be amended by agreement in writing between the
parties hereto shall remain in effect during the term of this Agreement. The
total cost of such program of social insurance benefits shall be (but shall not
exceed) 5 cents for each hour worked after December 31,1949, by the Employees,
one-half of which cost shall be borne by the Company and one-half of which cost
shall be borne by the Employees. Subject as hereinbefore provided, the details
of, and the specific benefits which shall be provided for by, such program o f
social insurance benefits shall be determined by agreement between the Company
and the Union. Each Employee shall be a participant in such program o f social
insurance benefits and the amount which he shall be required to contribute to the
cost thereof shall be deducted by the Company from his pay. Each Employee
shall furnish to the Company any such written authorization or assignment
(in a form agreed to in writing by the Company and the Union) as shall be
necessary to authorize the deduction from his pay o f the amount o f his contribu
tions. Such program o f social insurance benefits having been agreed upon, the
joint Board of Trustees o f the existing Relief Plan o f Bethlehem Steel Corpora
tion and Subsidiary Companies shall take appropriate action to terminate such
Relief Plan as soon as possible. Employees who are now receiving benefits under
the Relief Plan and who, upon termination o f such benefits, shall be entitled to a
11This agreement must be read in connection with the Pension Plan o f the Bethlehem
Steel Corp. and Subsidiary Companies, adopted January 25, 1923, as amended to July 30,
1948, which follows on page 169.
162
HEALTH, INSURANCE, AND PENSIONS
163
pension under the Pension Plan, shall be granted such pension in accordance with
the terms of the Pension Elan. Such program o f social insurance benefits shall
be in substitution for any and all other plans providing for insurance benefits or
payments to Employees for death, sickness or accident, hospitalization or medical
service, except as the Company and the Union shall in writing otherwise expressly
agree. It is intended that the provisions for sickness and accident benefits which
shall be included in such program of social insurance benefits shall comply with
and be in substitution for provisions for similar benefits which are or shall be
made by any law or laws. I f the sickness and accident benefits which shall be
provided for under such program shall not be in substitution for similar benefits
which shall be provided for under any such law or laws, the cost to the Company
or to the Employees of such benefits under such law or laws shall be deducted
from the amounts which the Company and the Employees, respectively, are re
quired to contribute to the program of social insurance benefits as provided in
this paragraph 2, and an appropriate readjustment shall be made in the benefits
provided for under such program. The cost of any social insurance benefits for
Employees in addition to the benefits provided for under this paragraph (which
benefits may be made available to Employees by agreement with the Union) will be
borne by the Employees and provision may be made by agreement between the
Company and the Union to deduct the cost o f such additional benefits from the
pay of the Employees who shall desire to purchase them.
3. Subject to favorable action in respect thereof by the stockholders o f Bethlehem
Steel Corporation, the Pension Plan of Bethlehem Steel Corporation and Subsi
diary Companies as it exists at the date hereof shall be amended as follow s:
(a) Effective as of January 1, 1950, Paragraph 1 o f Section III shall be
amended by deleting therefrom the number “25” and by inserting in
lieu thereof the number “ 15” .
(b) Effective as of January 1,1950, clauses (2) and (3) of Paragraph 1 of
Section IV shall be amended to read as follow s:
(2) that, subject to the provisions of clause (3) o f this paragraph, a
Pension granted after January 1, 1950, to an Employee who shall
have had at least 25 years o f continuous service at the date of his
retirement shall not be at a rate o f less than twelve hundred dollars
($1,200) per year, and a Pension granted after that date to an Em
ployee who shall have had 15 or more, but less than 25, years of
continuous service at the date o f his retirement, shall not be at a
rate per year o f less than that part o f twelve hundred (1,200) dollars
which the number of years of his continuous service bears to 25;
and (3) that the amount of any Pension which shall be granted under
Paragraph 2 of Section III hereof may, in the discretion o f said
Board, be less than the amount that would result from the calcula
tion and minimum amount above prescribed, but it shall not be
less than at the rate of six hundred dollars ($600) per year, until
the Pensioner shall reach the age of 65 years, after which it shall
not be less than the applicable minimum rate as provided in clause
(2) of this Paragraph 1.
(c) Effective as o f the first day of the month in which the old-age insurance
benefits presently payable pursuant to Title II o f the Social Security Act
shall be increased by any amendment o f said Act which shall be enacted
after the date of this Agreement, clause (2) of Paragraph 1 o f Section
COLLECTIVE BARGAINING PROVISIONS
164
IY, as amended as aforesaid, shall be further amended by deleting there
from the words “ after January 1,1950,” and, if such amendment of said
clause (2) shall result in increasing any pension under the Pension
Plan, the increase in such pension shall be effective as of the first day of
the month in which such old-age insurance benefits shall be so increased.
I f the stockholders of Bethlehem Steel Corporation shall not have acted
by January 1, 1950, on the amendments to the Pension Plan which are
hereinbefore set forth, the date “ January 1, 1950,” wherever it appears
in this paragraph 3, shall be changed to the first day of the month
following the month in which such favorable action shall be obtained,
but not later than March 1,1950.
4. It is understood that during the term of the Existing Agreement (the provisions
of the Pension Plan notwithstanding) the General Pension Board shall grant a
Pension to any Employee who shall have had at least 15 years continuous service
(as the term “ continuous service” is used in the Pension Plan) and who shall
have become through some unavoidable cause permanently incapacitated. An
Employee shall be deemed to be permanently incapacitated (as the term “per
manently incapacitated” is used in the Pension Plan and in this Agreement)
only (a ) if he has been totally disabled by bodily injury or disease so as to be
prevented thereby from engaging in any occupation or employment for remunera
tion or profit and (b ), if such total disability shall have continued for a period
of six consecutive months and, in the opinion of a qualified physician, it will be
permanent and continuous during the remainder of his life. It is understood that
a Pension shall not be granted under the provisions of Paragraph 2 of Section III
of the Pension Plan for the purpose of providing an Employee relief from unem
ployment or any condition other than permanent incapacity for medical reasons.
If, during the term of the Existing Agreement, any difference shall arise between
the Company and any applicant for a pension under the Pension Plan as to
whether such Employee shall have become permanently incapacitated, such
difference shall be resolved as follow s:
The Employee shall be examined by a physician who shall have been appointed
for the purpose by the company and by a physician who shall have been appointed
for the purpose by the International President of the Union or his designee. If
they shall disagree concerning whether the Employee is permanently incapaci
tated, that question shall be submitted to a third physician who shall be selected
by such two physicians. The medical opinion o f such third physician, after
examination of the Employee and consultation with such two other physicians,
shall decide such question. The fees and expenses of such third physician shall
be shared equally by the Company and the Union.
It is further understood that, during the term o f the Existing Agreement (the
provisions of the Pension Plan notwithstanding), the monthly amount o f any
pension which shall be granted to an Employee who shall be an applicant for a
pension under Paragraph 2 of Section III o f the Pension Plan shall not be less
than one per cent o f the average monthly compensation received by the applicant
from one or more Employing Companies (as the term “Employing Companies”
is used in the Pension Plan) for services rendered during the one hundred and
twenty calendar months next preceding the month in which the applicant shall
retire multiplied by the number of years of his continuous service.
5. If, during the term of the Existing Agreement, any difference shall arise
between the Company and any Employee who shall be an applicant for a pension
under the Pension Plan, as to
HEALTH, INSURANCE, AND PENSIONS
165
(a) the number of years o f actual continuous service of such applicant (as
the term “ continuous service’’ is used in the Pension Plan) in the
employ o f one or more Employing Companies (as the term “ Employing
Companies” is defined in the Pension Plan) ; or
( b) the age of such applicant; or
(c ) the average monthly compensation received by such applicant from
one or more of such Employing Companies for services rendered durinv the one hundred and twenty calendar months next preceding the
month in which he shall retire; or
( d ) whether an applicant, who shall have been determined to be perma
nently incapacitated and who shall have had at least 15 years of such
continuous service but shall not have attained the age of 65 years, shall
have become so permanently incapacitated through some unavoidable
cause (an incapacity shall be deemed to have resulted from an unavoid
able cause unless it (a ) was contracted, suffered or incurred while the
Employee was engaged in or resulted from his having engaged in a
criminal enterprise, or (b) resulted from his habitual drunkenness, or
(c) resulted from a self-inflicted injury), such difference may be taken
up as a grievance in accordance with the provisions o f Article X I
of the Existing Agreement, beginning at Step 3 thereof. I f any such
grievance shall be appealed to an impartial umpire in accordance with
the provisions of Section 2 of said Article X I, then such impartial um
pire, insofar as shall be necessary to the determination of such grievance,
shall have authority only to interpret and apply the provisions of the
Pension Plan and of this Agreement, but he shall not have authority in
any way to alter, add to or subtract from any of such provisions; and his
decision on any such grievance which shall properly have been referred
to him shall be binding on the Company, the General Pension Board,
the Union and the Employees concerned therein.
6. During the term of the Existing Agreement, the number of years of continuous
service of an Employee for the purposes of the Pension Plan shall be computed
in accordance with the provisions of Section 3 of Article X of the Existing
Agreement, except that it is understood that it shall include continuous service
(as computed in accordance with the provisions o f such Section 3) in the employ
of one or more of the Employing Companies rather than continuous service in the
applicable unit and except, further, that such number of years o f continuous
service may include such additional years as the General Pension Board shall
determine in accordance with the provisions o f Section V of the Pension Plan.
7. It is understood that, where applicable, the following rules shall apply, during
the term o f the Existing Agreement, in computing the average monthly compen
sation of an Employee in accordance with the provisions of Paragraph 1 of Section
IV of the Pension P lan:
(a) If, during the one hundred and twenty calendar months next preceding
the month in which the Employee shall retire, the Employee shall have
been absent from work because of disability or lay-off for one or more
periods of more than three consecutive calendar months each, there shall
be deducted from the total number of months which shall be used in so
computing the average monthly compensation of such Employee the
aggregate of the calendar months in excess o f three in each such period
of absence.
875403°— 50------12
COLLECTIVE BARGAINING PROVISIONS
166
(6) If, during such one hundred and twenty months, such Employee shall
have failed to work in more than twelve entire calendar months because
of disability or lay-off, there shall be deducted from the total number of
months which shall be used in so computing the average monthly com
pensation of such Employee the number o f such entire calendar months
in excess o f twelve.
(c) I f both of the foregoing rules shall be applicable to any Employee, only
the rule which shall yield the higher average monthly compensation for
such Employee shall be used.
8. The aggregate of the amount of moneys that shall have been paid into any
pension trust or trusts established in accordance with the provisions o f the
Pension Plan for any year during the term of the Existing Agreement and o f the
moneys that were paid into such trust or trusts for previous years shall not be
less than an amount which on a sound actuarial basis shall be estimated to be
sufficient to pay the pensions which shall have been granted thereunder during
such year and during such previous years.
9. The Company and the Union shall establish a joint committee on insurance
and pensions consisting of ten members, five of whom shall be designated by the
Company and five o f whom shall be designated by the Union. Such committee
shall be furnished annually a report regarding the program of social insurance
benefits and the operation of the Pension Plan insofar as it affects the Employees,
and also a copy of the annual report of the General Pension Board. From time
to time during the term of the Existing Agreement such committee shall be
furnished such additional information as shall be reasonably required for the
purpose of enabling it to be properly informed concerning the operation o f the
insurance program and o f the Pension Plan insofar as it affects the Employees.
10. During the term o f this Agreement, but only so long as the Pension Plan
insofar as it applies to the Employees and the provisions of paragraphs 4, 5, 6,
7, 8 and 9 of this Agreement shall continue in effect without modification or
change, neither the Union nor any of its locals or representatives nor any o f the
Employees shall (a ) make any request that the Company increase its contribu
tions toward the cost of any program of social insurance benefits for the Em
ployees as hereinbefore in paragraph 2 provided, or (b) make any request that
the Company increase the wages of the Employees on account of or for use in
paying the cost, in whole or in part, of any such program or pensions for the
benefit of the Employees or of their dependents, or (c) make any request that
the Pension Plan be changed in any respect or terminated, or that a new pension
plan be established, or that the amount which the Company is required by the
provisions o f the Pension Plan and of paragraph 8 of this Agreement to pay or
provide for pensions for the Employees be increased, or (d) engage or continue
to engage in or in any manner encourage or sanction any strike or other action
which shall interfere with work or production at any of the steel plants or fab
ricating works of the Company for the purpose of securing any such increase or
any such change or any other such action with respect to pensions or social in
surance ; and during the the term o f this Agreement the Company shall not have
any obligation to negotiate or bargain with the Union with respect to any of the
matters covered by clauses (a ), (b ), (c) and (d ) of this paragraph 10.
11. Section 1 of Article X IX o f the agreement between the Company and the
Union dated April 30, 1947, as amended and renewed by the agreement between
the parties dated July 17, 1948, is hereby amended to read as follow s:
HEALTH, INSURANCE, AND PENSIONS
167
Section 1. Except as otherwise expressly provided in this Agreement or
by the provisions of paragraph 12 of the agreement between the parties hereto
dated October 31,1949, this Agreement shall become effective on October 31,
1949, and shall continue in effect to and including midnight of Decem
ber 31,1951.
The existing Agreement is hereby reinstated and shall continue in full force
and effect in accordance with its terms.
12. Either party may on November 1,1950, give notice to the other party o f the
desire of the party giving such notice to negotiate with respect to a general and
uniform change in wage rates. After the giving of such notice and before the
parties shall reach an agreement on such matter (and during the period of any
strike or lockout which shall occur as permitted by the provisions of this para
graph 12), neither party shall request the other party to bargain or continue
to bargain with respect to any other matter and neither party shall have any
obligation to negotiate or bargain with the other party with respect to any
such other matter. Within thirty days after the giving of such notice, the parties
shall meet to negotiate with respect to the matter described in the first sentence
of this paragraph 12. I f the parties shall not agree with respect to such matter
by midnight of December 31, 1950, either party may thereafter resort to strike
or lockout, as the case may be, in support of its position in respect of such
matter; and, if such a strike or lockout shall occur, the Existing Agreement
shall terminate at the beginning of such strike or lockout; provided, however,
that, if and when the parties shall have reached an agreement with respect to
such matter, the Existing Agreement shall be reinstated and there shall be added
to and incorporated therein such additional provisions as shall have been agreed
to with respect to such matters only, and no others, and the Existing Agreement,
as so modified, shall thereafter continue in effect to midnight of December 31,1951.
13. This Agreement is in full settlement of all the issues in dispute between
the Company and the Union and the Union shall cause the strike of Employees
at the plants and works o f the Company to be terminated at 12:01 a. m. on
November 1, 1949. The Employees who were on September 30, 1949, on the
pay rolls o f the Company will be returned to work as soon as the orderly
resumption of operations will permit.
14. This Agreement is made with the understanding that (the provisions of
Section VII of the Pension Plan to the contrary notwithstanding) the Pension
Plan will continue in effect insofar as it applies to the Employees, *without
modification or change, during the term of the Existing Agreement and that at
any time after the expiration o f the Existing Agreement Bethlehem Steel Cor
poration shall be as free to act with reference to the Pension Plan as it was
prior to the execution o f this Agreement.
15. This Agreement shall become effective on October 31,1949, and shall remain
in effect until midnight of December 31,1951, and thereafter it shall continue in
effect, if and so long as the Pension Plan insofar as it applies to the Employees
and the obligations of the Company under the provisions o f paragraphs 4, 5, 6,
7, 8, and 9 of this Agreement shall continue to be complied with without modi
fication or change, but not later than October 31,1954
B e t h l eh e m S teel C o m p a n y ,
By (Signed)
U nited S teelworkers
By (Signed)
op
A m erica
168
COLLECTIVE BARGAINING PROVISIONS
O
c to b er
31, 1949.
UNITED STEELWORKERS OF AMERICA,
Commonwealth Building,
Pittsburgh, Pennsylvania.
Dear Sirs:
This will confirm the understanding between Bethlehem Steel Company (here
inafter called the Company) and United Steelworkers of America (hereinafter
called the Union), as hereinafter set forth, with reference to the agreement which
the Company and the Union have signed contemporaneously herewith (herein
after called the Pension Agreement) relating to pensions and insurance for the
employees who shall be in the bargaining units which are defined in the collective
bargaining agreement between the parties dated April 80, 1947, as amended and
renewed by the Agreement between the parties dated July 17, 1948, and as
further amended by paragraph 11 of the Pension Agreement, which collective
bargaining agreement, as so renewed and amended, is hereinafter called the
Existing Agreement.
1. The Pension Agreement is contingent upon and subject to obtaining the
necessary approval of the Commissioner of Internal Revenue of the trust or
trusts established under the Pension Plan of Bethlehem Steel Corporation and
Subsidiary Companies, as amended by the Pension Agreement, as exempt under
the provisions of Section 165 of the Internal Revenue Code.
2. I f the stockholders of Bethlehem Steel Corporation shall fail by March 1,
1950, to approve the amendments of said Pension Plan which are set forth in
paragraph 3 of the Pension Agreement, the Pension Agreement and the Existing
Agreement shall terminate on said date.
Please confirm that the foregoing correctly sets forth the understanding be
tween the Company and the Union by signing the form o f confirmation on the
attached copy of this letter and returning it to us.
BETHLEHEM STEEL COMPANY
By (Signed)
Confirmed:
UNITED STEELWORKERS OF AMERICA
By (Signed)
O
c to b er
31,1949.
UNITED STEELWORKERS OF AMERICA,
Commonwealth Building,
Pittsburgh, Pennsylvania.
Dear S irs:
This will confirm the understanding between Bethlehem Steel Company (here
inafter called the Company) and United Steelworkers of America (hereinafter
called the Union), as hereinafter set forth, with reference to the agreement
which the Company and the Union have signed contemporaneously herewith
(hereinafter called the Pension Agreement) relating to pensions and insurance
for the employees who shall be in the bargaining units which are defined in the
collective bargaining agreement between the Company and the Union dated
April 30, 1947, as amended and renewed by the Agreement between the parties
dated July 17, 1948, and as further amended by paragraph 11 of the Pension
Agreement, which collective bargaining agreement, as so renewed and amended,
is hereinafter called the Existing Agreement.
HEALTH, INSURANCE, AND PENSIONS
169
1. The present practice o f designating the members o f the General Pension
Board under the Pension Plan of Bethlehem Steel Corporation and Subsidiary
Companies (hereinafter called the Pension Plan) shall be continued.
2. The present practice of not designating Local Pension Boards under the
Pension Plan shall be continued.
3. The present practice of not giving effect to the provisions o f Paragraph 3
o f Section II of the Pension Plan with respect to employees who are in the
bargaining units which are defined in the Existing Agreement shall be continued.
4. The provisions of Paragraph 1 o f Section VI of the Pension Plan shall
not be deemed to modify the provisions of the Existing Agreement.
5. The present practice o f the General Pension Board in not interpreting the
provisions of Paragraph 2 of Section IV of the Pension Plan to authorize the
deduction of payments under any state law approved pursuant to Title I o f
the Social Security Act, as amended, shall be continued.
6. The understanding hereinabove described is for the term o f the Pension
Agreement.
7. The General Pension Board shall not take any action under Paragraph 3
of Section VI of the Pension Plan with respect to the pension of any pensioner
who at the time of his retirement during the term of the Pension Agreement
was in a bargaining unit which was covered by the Existing Agreement.
Please confirm that the foregoing correctly sets forth the understanding
between the Company and the Union by signing the form o f confirmation on
the attached copy of this letter and returning it to us.
BETHLEHEM STEEL COMPANY
By (Signed)
Confirmed:
UNITED STEELWORKERS OF AMERICA
By (Signed)
PENSION PLAN OF BETHLEHEM STEEL CORPORATION8
(Delaware)
and
SUBSIDIARY COMPANIES
Adopted January 25, 1923
As amended to July 30, 1948
S ection I.
D e f in it io n s
Wherever used in this Pension P lan:
1. The term “ the Corporation” means Bethlehem Steel Corporation (a Dela
ware corporation) or any corporation which shall be a successor to it in owner
ship o f substantially all its assets.
2. The term “ Employee” means any persons (including any officer and also
any director other than a director active only in that capacity) who is or shall
have been employed by an Employing Company (as the term “ Employing Com2 From a descriptive booklet or related material.
COLLECTIVE BARGAINING PROVISIONS
170
pany” is hereinafter defined) on regular full time service and whose place of
employment is in the United States or whose compensation is paid in United
States currency, and any such other person in the full time service o f an Em
ploying Company outside the United States as may be designated as an Em
ployee Under this Pension Plan by the General Pension Board constituted as
hereinafter provided.
3. The term “ Employing Company” means (a ) the Corporation, (b ) any sub
sidiary company (as the term “ a subsidiary company” is hereinafter defined)
and (c ) any corporation which prior to March 1, 1941, was merged into or con
solidated with the Corporation or any subsidiary company. In case the Cor
poration shall after March 1,1941, acquire shares of stocks or properties o f any
other corporation, the question of whether such other corporation shall be re
garded for the purposes of this Plan as an Employing Company shall be as
determined by the Corporation at or after the date of acquisition thereof.
4. The term “ a subsidiary company” means any corporation at least 95% o f
whose capital stock was on March 1, 1941, owned, directly or indirectly, hv the
Corporation.
S ection II. A d m in is t ra t io n
1. The administration of this Plan shall be in charge o f a General Pension
Board, which shall consist of five or more officers or employees of the Employing
Companies to be appointed by the Board of Directors o f the Corporation and
to serve until their successors shall have been appointed in like manner.
2. Subject to action by the Board of Directors of the Corporation the General
Pension Board shal^ have the following powers and duties:
(а ) To grant such pensions as are provided for under this Plan.
(б ) To make and enforce such rules and regulations as it shall deem neces
sary or proper for the efficient administration o f this Plan, and to
decide such questions as may arise in connection with the operation
o f this Plan.
(c ) To appoint representatives or Local Pension Boards at the plant or opera
tion or any o f the plants or operations of an Employing Company to
assist the General Pension Board in the administration of this Plan.
Any action by the General Pension Board shall require the written approval or
the affirmative votes of a majority o f its members*
3. The General Pension Board shall have the power to receive contributions
made by or on behalf of any of the Employees and to apply such contributions
to the acquisition o f annuities or pensions in addition to those provided for under
Section IV hereof.
S ection III. E l ig ib il it y 1
1. Any Employee who, at the time o f his retirement, shall have had at least
25 years’ continuous service determined as provided in Section V hereof and
shall have attained the age of 65 years shall be entitled to receive a Pension.
He may, however, remain in the service of an Employing Company after attain
ing such age with the consent o f the management of such Employing Company
and upon his retirement at any time thereafter shall be entitled to receive a
Pension.
2. Any employee who shall have had at least 15 years continuous service
determined as provided in Section V hereof and who shall have become through
some unavoidable cause permanently incapacitated or who for any other reason
shall retire with the consent o f the management of the Employing Company
HEALTH, INSURANCE, AND PENSIONS
171
by which he shall then be employed may, at the discretion of the General Pension
Board, be granted a Pension by it upon his retirement from active service.
3.
Bach application for a Pension shall be in writing on a form provided by the
General Pension Board, and shall be made to the General Pension Board or to
the Local Pension Board, if any, at the plant or operation at which the applicant
shall then be employed or to any representative o f the General Pension Board
designated by it for the purpose. The General Pension Board may require any
applicant for a Pension to furnish to it such information as it in its discretion
shall require.
S ection IV . P ension A llo w an ce
1. The monthly amount of any Pension granted hereunder shall equal one
per cent of the average monthly compensation received by the applicant from
one or more Employing Companies for services rendered during the one hundred
and twenty calendar months next preceding the month in which the applicant
shall retire, multiplied by the number o f years o f his continuous service (the
monthly amount in each case to be adjusted to the nearest dollar, cents being
eliminated); provided, however, (1) that, if by reason of temporary lay-offs
or other unusual conditions such average monthly compensation in the judgment
of the General Pension Board shall not be fairly representative of the normal
earnings of such applicant, said Board may, for the purpose o f calculating the
Pension of such applicant, make such adjustments in the actual earnings of
such applicant for said one hundred and twenty calendar months as it shall
deem equitable; (2) that, subject to the provisions of clause (3) o f this para
graph, no Pension shall be at a rate of less than six hundred dollars per year;
and (3) that the amount of any Pension granted under Paragraph 2 o f Section
III hereof may in the discretion o f said Board be less than the amount that would
result from the calculation and minimum amount above prescribed.
2. I f any Pensioner is or shall become, or upon application would become,
entitled to any annuity, pension or payment o f similar kind by reason o f any
law of the United States of America or of any foreign country, or of any state,
district, territory, or subdivision of, or subject to the jurisdiction of, either thereof
(hereinafter called a Public Pension), or to any other pension or payment in
the nature o f a pension from any source or fund (other than a pension triist of
the character described in Section V III hereof) to which source or fund any of
the Employing Companies shall have directly or indirectly contributed (any such
other pension or payment in the nature o f a pension being hereinafter referred to
as Other Pension), then the amount of the Pension payable under this Plan to
such Pensioner for any period shall be reduced by the amount of any such
Public Pension and/or any such Other Pension paid or payable to him or that
would upon application become payable to him for the corresponding period;
provided, however, that, if such Pensioner shall have contributed to the source
or fund out of which such Other Pension shall be paid or become payable or
would become payable upon application, then the amount by which the Pension
payable under this Plan for any period shall be reduced in accordance with the
foregoing provisions of this Paragraph 2 shall be decreased by the amount of
that part o f such Other Pension for the corresponding period which shall be
attributable to the contributions which such Pensioner shall have made to such
source or fund. As used herein, the term “ Public Pension” does not include a
Pension granted for or on account of military service.
3. I f any Pensioner is or shall become entitled to or shall be paid any discharge,
liquidation or dismissal allowance or payment of similar kind by reason of any
172
COLLECTIVE BARGAINING PROVISIONS
plan o f any of the Employing Companies, or in respect of which any of them
shall have directly or indirectly contributed, or by reason of any law o f the
United States of America or o f any foreign country, or o f any state, district,
territory or subdivision of, or subject to the jurisdiction of, either thereof, then
the total amount paid or payable to him in respect of any such allowance or pay
ment may, in the discretion o f the General Pension Board, be deducted from the
amount of any Pension to which such Pensioner would otherwise be entitled
under this Plan upon retirement; provided, however, that, if such Pensioner
shall have contributed to the source or fund out of which such allowance or
payment shall be paid or become payable, then the amount which may, in the
discretion o f the General Pension Board, be deducted from the amount o f any
such Pension in accordance with the foregoing provisions o f this Paragraph 3
shall be decreased by the amount of that part of such allowance or payment which
shall be attributable to the contributions which such Pensioner shall have made
to such source or fund.
4.
Each Pension shall be paid in monthly instalments. The first monthly
instalment of the Pension o f each Pensioner shall be payable during the month
next following the month in which he shall retire, and the last monthly instal
ment of such Pension shall be payable, to his widow or other dependents, during
the month next following the month in which the death of such Pensioner shall
occur.
S ection V. D eterm in ation of S ervice
1. The term “ continuous service” as used in this Plan means continuous service
in the employ o f one or more o f the Employing Companies, except as in this
Section V otherwise provided.
2. The number of years of continuous service o f any Employee shall be con
clusively determined for all purposes of this Plan by the General Pension Board.
3. Temporary lay-offs on account o f illness or reduction of forces shall not be
considered as breaks in continuity of service, except in cases where the Employee
fails to return promptly after he shall have recovered from such illness or fails
to accept employment when offered. When any such absence exceeds six con
secutive months, the period o f time in excess of such six months shall be deducted
in computing the term of continuous service o f such Employee.
4. The continuous service record of an Employee who shall have been absent
in military service for the United States of America or who shall have been
absent on leave for other service to the United States of America or for military
or other service to any subdivision thereof shall not be affected by his absence.
5. The number of years of service of any Employee may include, in the discre
tion of the General Pension Board, (a) the periods of service rendered by such
Employee in connection with properties or businesses at any time owned by an
Employing Company and which was rendered prior to the acquisition of such
properties or businesses by such Employing Company, and (b) the periods of
service rendered by such Employee in other activities relating to or affecting the
interest of any of the Employing Companies.
S ection VI. G eneral R egulations
1.
This Plan is strictly a voluntary provision on the part of the Employing
Companies, and shall not be deemed to constitute a contract between any one or
more Employing Companies and any Employee or to be a consideration for, or an
inducement or condition of, the employment o f any Employee. Nothing con
tained in this Plan shall be deemed to give any Employee the right to be retained
HEALTH, INSURANCE, AND PENSIONS
173
in the service of an Employing Company or to interfere with the right o f the
Employing Company by which he shall then be employed to discharge or retire
any Employee at any time.
2. No assignment of any Pension will be recognized or permitted, nor shall any
Pension or payment on account of any Pension be subject to attachment or other
legal process for or against the Pensioner.
3. The General Pension Board shall have the absolute right to cancel or
suspend payment of the Pension of any Pensioner whenever it shall consider
such Pensioner is undeserving for any reason.
Section VII. A m endm ent
or
T erm in atio n
The Board of Directors o f the Corporation shall have the right to modify,
change, or terminate this Plan at any tim e; provided, however, that no Pension
already granted at the time of any modification of, or change in, or the termina
tion of, this Plan shall be discontinued or reduced except as provided in Para
graph 3 of Section VI hereof; and provided further, that this Plan shall not be
so modified or changed as to result in the payment of any Pension in excess of
that which may be paid in accordance with the provisions of Paragraph 1 of
Section IV of this Plan. Notice of any such modification or change or of such
termination shall be posted conspicuously at each plant of the Employing Com
panies at least thirty days prior to its effective date.
S ection VIII. P en sion T rust
The Corporation may pay or cause to be paid into one or more pension trusts
such amounts as its Board of Directors shall approve. The moneys so paid into
such trust or trusts shall be used only for the payment of Pensions to Employees
of the respective Employing Companies which shall pay such moneys into such
trust or trusts, or, if not required therefor, for such other purposes as are for
the exclusive benefit of such Employees. The aggregate of the moneys that shall
be in such trust or trusts shall not at any time exceed the estimated amounts that
will be required for the payment of Pensions to such Employees.
A luminum C ompany
op
A luminum W orkers’ U nions N os. 18780, 19256,
in C ooperation W ith the I nternational
W orkers’ U nions . I nsurance and P ension P rogram .
A merica
and
23120, and 24288 (AFL), A cting J ointly
C ouncil of A luminum
A greement N egotiated N ovember 1949
Aluminum Company o f America (and its subsidiaries), hereinafter referred
to as the Company, and Aluminum Worker’s Unions Nos. 18780, 19256, 23120,
and 24288 affiliated with the American Federation of Labor, acting jointly in
cooperation with the International Council of Aluminum Workers’ Unions,
hereinafter referred to as the Union, hereby agree:
The Union having opened the matter of wages in accordance with the
Agreement of June 25, 1948, it is now agreed that the issues under discussion
pursuant to such reopening are hereby settled upon the following basis:
A. Group Insurance
1. Article 3 of the Supplemental Agreement dated May 8, 1947, is hereby
amended to read as follow s:
“ The Company will provide and pay the cost o f an employee social in
surance plan which will provide benefits as follow s:
(1) A death benefit, payable upon death during active service, of $2,000.
(2) A death benefit, payable upon death after retirement under the Em
ployees’ Retirement Plan of Aluminum Company o f America, o f
$1,500.
(3) Non-occupational sickness and accident benefits of $26 per week for
a maximum o f 26 weeks in any one period o f a year, subject to a
seven (7) day waiting period in cases of sickness.
(4) Hospitalization benefits o f $8.50 per day for a maximum o f thirtyone (31) days in any one period of a year, and for special services
a maximum of ten (10) times the daily benefit.
(5) Surgical operation insurance, as per schedule, with a maximum bene
fit of $225.
“Details o f these benefits will conform to the applicable provisions, with
revised benefits, as outlined in the booklets o f the present plan.”
“The insurance will apply to all active (not laid-off) employees who have
ninety (90) days’ seniority.”
“ Any problems, complaints of grievances arising under or concerning
group insurance shall not be subject to or handled under the grievance
or arbitration provisions of this Agreement, but will be handled in ac
cordance with separate rules.”
2. The schedule o f revised benefits will become effective not later than the
last day o f the calendar month next following the month in which this
Agreement becomes effective.
3. It is understood that this Agreement is an agreement on the basis of
benefits and not on the basis o f costs.
174
HEALTH, INSURANCE, AND PENSIONS
175
4. It is understood that the continuance of the present dependents’ insurance
and voluntary group life insurance plans is unaffected by this Agreement.
5. Wherever there are or may hereafter be State or Federal laws providing
insurance benefits in any of the above categories, together with pay-roll
taxes to support them, full advantage will be taken of any opportunity
under any such laws to substitute these benefits for those provided by the
law, or vice-versa, with the maximum abatement of tax or premium cost
which is available because of such substitution.
B. Pensions
(1) The Company will revise its existing Retirement Plan so as to provide
benefits which, when added to any primary benefits payable under the Old Age
and Survivors Insurance provisions of the Social Security Act or similar Federal
or State law, (or law of any foreign country) equal a uniform rate, for normal
retirement allowances, of 1.18 percent of the compensation received during each
year of credited service prior to attainment o f age sixty-five (65) ; provided
(a) There will be a minimum normal retirement allowance of $100 per
month for twenty-five (25) years of continuous service.
(b) There will be a minimum normal retirement allowance o f $60 per
month for fifteen (15) years of continuous service.
(c) Minimum normal retirement allowances for years of continuous service
between fifteen (15) and twenty-five (25) will be the $60 per month
allowance plus $4 per month for each year over fifteen (15).
(d) No employee shall be eligible for retirement allowance unless he has
completed fifteen (15) years of continuous service upon attainment of
age sixty-five (65).
(e) The normal retirement date shall be at or over age sixty-five (65).
(2) The Company will revise its existing Retirement Plan so as to provide a
benefit for permanent and total disability occurring at or after attainment of age
fifty-five (55) and at or after twenty-five (25) years continuous service, which,
when added to any benefit for such disability under any Federal or State law
(other than Workmen’s Compensation Acts) equals 1.18 percent of the com
pensation received during each year of credited service; provided, that no such
benefit shall be less than $50 per month.
(3) Employees retiring between the effective date of this Agreement and the
effective date of the revisions o f the Plan, will receive any applicable adjustments
of benefits.
(4) The provisions o f the revised Plan shall apply to present as well as future
employees, but in no case shall the the revisions reduce the benefit to which any
present employee is entitled.
(5) Words used in this Agreement, such as “credited service,” “normal retire
ment allowance,” etc., have the meanings as defined and used in the existing
Retirement Plan.
(6) It is the object o f the parties that the details of the revised Plan, including
the development o f rules and regulations governing its operation, will be com
pleted by April 1,1950, and placed in effect thereafter as soon as practicable.
(7) The revised Retirement Plan will be open for review on a date five (5)
years after the effective date of the revisions. The revised Plan will not be
changed and will not be open for negotiations except at the time of such review.
(8) The Plan as revised shall be contingent upon and subject to approval by
the Commissioner of Internal Revenue as a qualified pension trust under Section
176
COLLECTIVE BARGAINING PROVISIONS
165(a) of the Internal Revenue Code and by the Board of Directors and/or the
Stockholders of the Company.
(9) Except as agreed to herein, and except as may be agreed by the parties
in completing any necessary details of the revised Plan, the existing Plan will
remain in full force and effect.
(10) In case it appears desirable to do so, a Plan may be established whereby
employees can contribute to a fund to supplement the pensions available under
the revised Plan.
C. This agreement will become effective upon receipt of notice in writing by the
International Council of Aluminum Workers’ Unions to the Company that it
has been ratified by the local Unions.
D. The matters of the term of Agreement of April 9, 1947, and the status o f
so-called cost or fringe benefits, will be the subject o f negotiations prior to
December 31, 1949.
D a ted -------------------1949
For the Company
(Signed)
(Signed)
For the Union
(Signed)
(Signed)
F ord M otor C ompany and U nited A utomobile , A ircraft and A gricultural I mplement
W orkers of A merica (CIO). R etirement and H ealth and Security P rograms
Memorandum of Agreement on Retirement and Health and Security Programs
( September 28,1949)
The Ford Motor Company and the Union (UAW-CIO) Agree to the following:
RETIREMENT PLAN
Section 1. The Retirement Plan shall be non-contribntory, financed com
pletely by the Company.
Section 2. For the duration o f the pension agreement beginning March 1,
1950, the Company agrees to pay into a pension fund 8% cents for every hour
for which an hourly rated employee covered by the contract receives compensa
tion, for the purpose of providing the benefits set forth herein. Since the
Company assumes the responsibilty to make contributions from time to time to
the pension fund in the amount sufficient, based upon estimates made by a duly
qualified actuary, to provide the monthly benefits specified in Section 5, taking
into consideration as therein provided primary (old age) insurance benefits
under the Federal Social Security Act (as now in effect or as hereafter amended)
it may vary these payments accordingly. Past service benefits shall be funded in
such manner as the Company in its sole discretion shall determine.
Section 8. The benefit structure of the Retirement Plan shall be administered
within the framework of the Pension Agreement by a Joint Board of Administra
tion, having three members each from the Company and the Union. Suitable
provisions shall be made for the breaking o f any deadlocks by an impartial
chairman selected by mutual agreement by the Company and Union representa
tives on the Board.
Section 4. The Board o f Administration shall be empowered to administer
the Plan as it relates to development o f administrative policy and procedure,
for such functions a s :
A.
B.
C.
D.
E.
F.
Verifying and establishment of service credits;
Methods of handling and paying claims and benefits;
Interpretation of the rights of employees under the Plan;
Reviewing and acting on appeals;
Collection and analysis o f administrative statistics;
Authorization to the Bank or Trust Company acting as Trustee for the
Pension Fund, for proper payments from the Pension Fund; and
G. Similar and related functions and duties that are inherent in proper
administration of benefits and operation o f the Plan.
Decisions o f the Board of Administration shall be by majority vote with the
impartial charman empowered to cast the deciding vote in case of a tie. De
cisions of the Board shall be final and binding.
Section 5. (a ) There shall be payable, on retirement at normal retirement,
age 65, or older, with 30 years or more of credited service, a benefit o f $100
177
178
COLLECTIVE BARGAINING PROVISIONS
a month including primary (old age) insurance benefits under the Federal
Social Security Act, (as now in effect or as hereafter amended) payable to
the employee, or at age 65, or older, with less than 30 years of credited service,
a pension equal to the same proportion o f $100 as the number of years of credited
service bears to 30, including primary Federal Social Security Benefits as before.
(6 ) There shall be payable on retirement after age 60, but before age 65
and after 30 years of credited service, including 10 years credited service after
the effective date o f the Plan, a benefit reduced to equate for all factors so as
not to increase the cost o f the plan or impair the benefits payable under other
sections.
(c)
Benefits payable under Social Security shall be deduced from the pension
benefit payable after retirement under the Plan whether or not such Social
Security payment is lost by the individual through acceptance o f covered
employment or otherwise.
S ection 6. Disability Retirement
Retirement for total and permanent disability after 30 years o f credited
service at age 55 or older shall be a flat retirement benefit o f $50 a month
less any Federal Social Security benefit receivable by the employee for
disability.
S ection 7. Any future increase in the old age benefits payable under the
Federal Social Security Act shall reduce by the amount o f such increase the
portion o f the benefit payable under this plan.
S ection 8. Crediting of Service
(a ) “Past Service” shall be credited at the rate o f one year of seniority as
defined in the Collective Bargaining Agreement, excluding seniority credited for
military service prior to employment by the Company, provided, however, that
there shall be added thereto a year of past service for each year by which the
total years of accumulated active service prior to June 20,1941, exceed by more
than five years total seniority for that period.
(b) “ Future Service” shall be credited at the rate o f one year for each calendar
year prior to attainment o f age 65 in which the employee receives pay for 1,800
or more hours, 3/4 of a year for 1,300 to and including 1,799 hours, 1/2 o f a year
for 750 to and including 1,299 hours, with no credit for less than 750 hours in a
calendar year.
Section 9. Retirement Age
The normal retirement age shall be 65. Retirement shall be automatic at age
68 but there shall be no increase in benefits after age 65. An employee may retire
early with the consent o f the Company between age 60 and 65, provided he has
at least 30 years of credited service.
Retirement upon total and permanent disability is permitted between ages 55
and 65 provided the employee has at least 30 years o f credited service.
The Company at its sole discretion may retire any employee at age 65 or older
by reason o f employee’s inability to perform efficiently work assigned to him.
Employees age 67 or more as o f July 16,1949, shall be automatically retired on
the date of their first birthday following January 1,1951. No employee shall be
subject to automatic retirement prior to April 1,1952, if, at the time he reaches
normal retirement age, he has more than ten years of service and would receive
a pension (including Social Security) o f less than $75.00 a month.
This problem w ill be reviewed by the parties 30 days in advance o f April
1,1952.
HEALTH, INSURANCE, AND PENSIONS
179
S ection 10. Effective Date
(a )
The liability of the Company for payments to the “ pension trust fund” as
specified herein shall accrue beginning on March 1, 1950, which shall be the
“ effective date” of the program;
(ft) Benefit payments shall commence on April 1,1950. Employees who retire
during March, 1950, or who are to be considered retired under subparagraph (c)
below, shall commence to receive benefits on April 1,1950, if living.
(c)
Employees whose employment by the Company terminated on or after
July 16, 1949, but before the effective date of the program, who would have
qualified for benefits under the program had it been in effect at the time o f such
termination of employment, shall be treated as having retired.
S ection 11. Vesting
No employee shall have any vested right under the program except as to such
rights as accrue to him in connection with retirement as provided for under
the program.
S
e c t io n
12.
The Company shall have the sole right to select and contract with a qualified
Bank or Trust Company to act as the Trustee of the Pension Fund. Such Trustee
shall hold, and be solely responsible for, the investment o f the Pension Fund.
Benefits shall be payable only from the Trust Fund; and the Trustees shall make
such benefit payments from the Pension Trust Fund as are specifically authorized
by the Board of Administration.
Section 13. Approval of Plan
All of the foregoing shall be subject to the approval by the Commissioner o f
Internal Revenue as a qualified pension trust under Section 165 of the Internal
Revenue Code, and in the event that any revision o f the foregoing is necessary to
meet the requirements for qualification, the Board, but only upon consent of the
parties to this Agreement, is authorized to make such necessary revisions, ad
hering as closely as possible to the intent of the parties hereto as expressed in this
pension agreement.
Section 14.
The Pension Agreement shall continue in effect for a period of five years from
March 1,1950. Either party may request renegotiation of the provisions of the
pension agreement upon sixty-day written notice to the other party in advance
o f March 1,1955.
During the period o f five years from March 1, 1950, neither the Company nor
the Union shall demand any change in this pension agreement nor shall either
party be required to bargain with respect to this pension agreement, nor shall
a change in or addition to any feature in this pension agreement be an objective
of or be stated as reason for any strike or lockout or other exercise of economic
force or threat thereof by the Union or the Company.
Section 15.
The Company shall not be obligated to make additional payments to the Fund
to make up deficiencies in any year arising from depreciation in the value of the
securities in the Fund resulting from abnormal conditions.
Section 16.
It is understood that the foregoing is intended to set forth the principal pro
visions of the Pension Plan. The Company and the Union, within two weeks fol
lowing ratification hereof, shall each appoint a committee of three who shall
draw up an agreement which shall incorporate and implement in sufficient detail,
the framework established by the foregoing provisions.
COLLECTIVE BARGAINING PROVISIONS
180
HEALTH SECURITY PROGRAM
S ection 1. Medical Benefits
The Company as o f January 1,1950, will add to its John Hancock policy with
no change in the employees’ contributions, an in-hospital medical program, for
the employee, having the following basic benefit structure:
A maximum of $280.00 for hospital confinement o f 70 days or more. The
maximum will be proportionately reduced for fewer than 70 days at the rate
of $4.00 per day.
S ection 2. Death and Accident and Sickness Benefits
The Company agrees to continue without other change the present John
Hancock Insurance Company group insurance policy for death, dismemberment,
and accident and sickness benefits;
S ection 3. Hospital and Surgical Benefits
The Company agrees to continue without change the present arrangement
for providing BJue Cross and Blue Shield benefits.
This memorandum of agreement shall become final when both it and the
Collective Bargaining Agreement superseding that dated August 21, 1947, have
been signed by both parties and ratified by the Union, and the Company is so
notified in writing by the Union by October 29,1949.
In w itn ess w h e re o f th e p a rties h a ve set th eir h an ds on th e d a te first ap pearin g
above.
United Automobile, Aircraft, and
Agricultural Implement Workers
o f America, CIO
(Signed)
Ford Motor Company
(Signed)
N ational E lectrical C ontractors A ssociation and I nternational Brotherhood of
E lectrical W orkers (AFL). I nternational Brotherhood of E lectrical W ork
ers’ P ension B enefit T rust F und
EMPLOYEES* BENEFIT AGREEMENT
(As Amended November 8,1947)
Entered into September 3, 1946, between the National Electrical Contractors
Association (I. B. E. W. Employers Section), hereinafter called the Association,
and the International Brotherhood of Electrical Workers, hereinafter called the
Brotherhood.
P reamble
It is generally recognized that industry has an obligation to discharge in
providing for its aged and disabled workers, and it is obvious that the benefits
provided under the Federal Social Security Act for this purpose are inadequate
to sustain electrical workers at anywhere near the standard o f living which has
been established by their normal income.
The efficiency of the Electrical Contracting Industry’s service to the public
will be enhanced and greater employment opportunities provided for new workers
and returning war veterans if the older electrical workers are retired with
payment of reasonable benefits when they are no longer able to maintain normal
production.
The economic and social benefits of retirement plans have been recognized
by the public and many public service corporations and other employers have
provided old age pensions and other social benefits for their employees.
Because o f the nature of the Electrical Contracting Industry which requires
many of its employees to move from job to job and from employer to employer,
it is necessary for its employers to act cooperatively through a central organiza
tion in order to do what a single employer may do in other fields o f industrial
enterprise.
For the purpose, therefore, of improving the service of the Electrical Contracting
Industry and o f enabling its employers to discharge their obligation to their
wage earners, it is hereby decided and agreed between the Association and the
Brotherhood as hereinafter set forth.
A rticle I
Sec. 1. This agreement shall take effect October 1, 1946, and shall remain in
effect until December 31, 1946. It shall continue in effect from year to year
thereafter, from January 1 to December 31 o f each year, unless changed or
terminated in the way later provided herein.
Sec. 2. Either party desiring to change or terminate this agreement shall notify
the other in writing at least ninety days prior to January 1 o f any year. I f
notice is given for changes, the nature of the changes desired shall be specified
in the notice.
Sec. 3. This agreement shall be subject to amendment or revision at any time
by mutual consent of the parties hereto.
875403°— 50------13
181
182
COLLECTIVE BARGAINING PROVISIONS
A rticle II
Sec. 1. A Pension Board to be known as the “ NATIONAL EMPLOYEES
BENEFIT BOARD FOR THE ELECTRICAL CONTRACTING INDUSTRY”
(hereinafter called the National Board) is hereby created to establish a trust
fund for the purpose of providing a pension for “ A” members of the Brotherhood.
Such trust fund shall not be used for any purpose other than payment o f pensions
to members of the Brotherhood.
Sec. 2. It is understood and agreed that the National Employees Benefit Board
shall not pay any benefits directly to any individual, or in any way engage in
the business o f insurance. No provision of this Agreement shall be construed
to the contrary.
Sec. 3. The National Employees Benefit Board shall consist o f fifteen (15)
members, seven (7) appointed by the Association and seven (7) appointed by
the Brotherhood and one (1) Public Member, appointed by the United States
Secretary of Labor. The members of the National Board shall serve without
compensation or allowances, except for actual expenses as approved by the
National Board, and for such terms as each appointing authority may decide.
Vacancies from any cause shall be filled by the respective appointing authority on
whose membership the vacancy exists.
Sec. 4. No member of the National Board shall be personally liable to any
member of the Brotherhood or to any electrical contractor for any act or failure
to act of his or of any agent or employee of the Board.
Sec. 5. The National Board shall appoint a Chairman and a Vice Chairman
from among its members—one of whom shall be from the Association and the
other from the Brotherhood—and it shall employ a Secretary-Treasurer as here
inafter provided. The Secretary-Treasurer shall not have a vote in any matter
before the Board.
Sec. 6. An annual meeting of the National Board shall be held within the first
six (6) months of each calendar year on such date within this period and at such
place as the Chairman and the Vice Chairman may decide. Special meetings
may be called by the Chairman at any time on fifteen (15) days' notice mailed to
each member. Nine (9) members of the National Board shall constitute a quorum
for the transaction of business, but in voting on any matter before the Board the
representatives of each party to this Agreement shall be counted as though all
were present and voting.
Sec. 7. In the event the members of the National Board become deadlocked
with respect to any question before them, such question shall be submitted to
the Public Member for decision and his decision shall be final and binding upon
the Board.
A rticle III
The National Employees Benefit Board is hereby instructed and empowered
as follow s:
Sec. 1. To provide for the local collection of Benefit Fund pay-roll assessments
in an amount equal to 1% of the gross electrical labor pay rolls o f all electrical
contractors (as hereinafter defined) who employ members of the Brotherhood
and for the performance of such other local functions as may be required, by
establishing as its agents, local or area boards to be constituted and operated as
set forth in Article IV hereof.
Provided that in localities or areas where there are now in effect under agree
ments between Locals of the International Brotherhood of Electrical Workers
and electrical contractors or associations of electrical contractors, plans under
HEALTH, INSURANCE, AND PENSIONS
183
which retirement benefits by assessments on contractors’ pay rolls are provided
for members of such Locals, the National Board, under this Agreement, shall
designate as its agents to perform the functions of the Local Board described in
Article IV of this Agreement, the trustees or other administrative bodies under
such local plans. Only Section 6 o f Article IV and no other Section of that
Article, shall apply to any local trustees or other administrative bodies acting
under this proviso.
Sec. 2. To pay over quarterly to a Board of Trustees (hereinafter provided
for) a lump sum, the amount o f which it shall separately determine for each
quarter, provided, however, that the total of such subscription shall not in any
case he in excess of the total amount paid into the Brotherhood’s Pension Fund
by its own members from May 5, 1947, and provided further that no such sub
scription shall in any case be in excess o f the amount o f the funds then in the
hands of the National Board, less its necessary operating expenses and the
operating expenses of the Board of Trustees for the following quarter. The
Brotherhood shall submit quarterly to the National Board a report o f the re
ceipts and disbursements under its pension Benefit Fund.
Sec. 3. To secure and compile accurate statistics regarding the number, age,
health and employment records of members o f the Brotherhood employed by
electrical contractors, and to make actuarial studies based on such statistics and
prepare for the consideration of the Industry plans for providing its employees
with disability and hospitalization insurance as well as such other social benefits
as are economically sound and will receive public acceptance.
Sec. 4. To obtain whatever office space and equipment the National Board
feels is necessary for the administration o f this Agreement.
Sec. 5. To engage a Secretary-Treasurer and such other employees as are
needed and to secure such special or regular services o f others as the National
Board considers proper and to pay from the funds under the National Board’s
charge such salaries and such expenses or operating overhead as the National
Board considers necessary.
Sec. 6. To retain a Certified Public Accountant to set up a proper bookkeeping
and accounting system for the National Board and for the operation and ad
ministration of its funds.
Sec. 7. To engage and have an auditor make audits and examinations at least
once each year of the books, accounts and records of the National Board. The
result o f the audits and examinations shall be made available for inspection by
interested parties at the offices o f the National Employees Benefit Board, the
National Electrical Contractors Association and the International Brotherhood
of Electrical Workers.
Sec. 8. To make a full and complete report to the Association and the Brother
hood once each year o f the National Board’s actions and the conditions of the
funds under its charge.
Sec. 9. To keep correct minutes o f all o f its meetings.
Sec. 10. To make accessible at any and all times to the auditor or any o f his
assistants, or any authorized representatives ,of the Association or of the Brother
hood, all minutes and meetings o f the National Board, and all records, reports,
contracts, accounts and papers.
Sec. 11. To see that the Secretary-Treasurer and other employees whom it may
deem necessary to bond are properly and adequately bonded.
Sec. 12. To promulgate such policies, rules and regulations as may be neces
sary to effectuate the efficient administration of this Agreement. Provided, such
policies, rules or regulations are consistent with the intent o f this Agreement.
184
COLLECTIVE BARGAINING PROVISIONS
A rticle I I I - A
Sec. 1. There shall be established by the contracting parties hereto a Board
of Trustees to be known as the “ Board of Trustees of the International Brother
hood of Electrical Workers’ Pension Benefit Trust Fund” (hereinafter called
the Trustees).
Sec. 2. The Board o f Trustees shall consist o f two (2) members, one (1)
appointed by the Association and one (1) appointed by the Brotherhood. Pro
vided, however, that if the trustees become deadlocked with respect to the inter
pretation o f any provision defining their duties (hereinafter set out) they shall
submit the question in dispute to the Public Member o f the National Board for
determination and his decision shall be final and binding.
Sec. 3. The Trustees are hereby instructed and empowered as follow s:
{a) To deposit all monies received from the National Board in a Trust Com
pany in the name of “ International Brotherhood of Electrical Workers’ Pension
Benefit Trust Fund.” All withdrawals after approval by the two trustees shall
be signed by one of the trustees. Withdrawals shall not be made for any pur
pose other than for payment o f Pensions to members of the Brotherhood.
(b) To pay pensions to those members of the Brotherhood who meet the re
quirements specified in Section 1 of Article III-B herein.
(c) To secure and compile records regarding the ages, and length of member
ship in the Brotherhood of all members of the Brotherhood who shall be eligible
to apply for pensions at such time as they have complied with the provisions of
Section 1, Article III-B herein.
(d) To meet monthly on such date and at such place as they may decide;
provided, however, that special meetings may be called by either one o f the
trustees.
(e) To furnish bond to the Association and the Brotherhood for faithful
performance of their duties. The amount of the bond shall be twenty-five
thousand dollars ($25,000.00) for each trustee. The National Board shall pay
the premiums on the bonds.
( / ) To engage and have an auditor make audits and examinations at least
once each year o f the books, accounts and records o f the Trustees.
(g) To make a full and complete report to the National Board once each year
of their actions and the conditions of the funds under their charge. Such report
shall be available for inspection by interested parties at the offices o f the
Trustees, the National Employees Benefit Board, the National Electrical Con
tractors Association and the International Brotherhood of Electrical Workers.
A rticle III-B
The pension Benefits shall be made available to and in accordance with the
follow ing:
Sec. 1. Any “ A” male member o f the Brotherhood who attains the age of 65
years and who has been a member of the Brotherhood in continuous good
standing for 20 years immediately preceding his application for a pension.
Sec. 2. The Pension Benefits provided for herein shall be $50.00 per month.
Sec. 3. Applications for pensions shall be submitted in duplicate, the original
forwarded to the Brotherhood and the copy to the Trustees. The Brotherhood
shall submit to the Trustees a complete record of the age and membership
standing o f each applicant for pension and on the effective date of this Agreement
the names of all the members o f the Brotherhood receiving pensions under the
“ Pension Benefit Fund of the Brotherhood.”
HEALTH, INSURANCE, AND PENSIONS
185
Sec. 4. Approved applicants shall be placed on the Pension Roll the first of
the month following action of the Trustees. Provided, however, that in the
event there are not sufficient funds in the hands of the Trustees to meet all
pension claims as they become due in any calendar month o f the year, the
Brotherhood shall provide for the additional pension claims out o f the funds
in the Pension Benefit Fund of the Brotherhood.
Sec. 5. Any member of the Brotherhood who accepts a pension payment for
any particular month under the provisions of this Agreement shall thereby
cancel any claim he may have against the Pension Benefit Fund of the Brother
hood for the same month, and he agrees not to perform any electrical work of
any kind either for compensation or gratis for anyone.
A rticle IV
Sec. 1. As soon as possible after the date upon which this Agreement is
entered into a Local Employees Benefit Board, hereinafter called the Local
Board, shall be established in each locality or area over which a chapter
chartered by the Association has jurisdiction, and where there are in effect
recognized collective bargaining labor agreements between said Association
chapter and all local unions of the Brotherhood having trade jurisdiction in the
area and members employed by electrical contractors. Notice of the appoint
ment of each Local Board shall be published in the official journals of the
Association and o f the Brotherhood.
Sec. 2. Each Local Board shall consist o f seven (7) members and a SecretaryTreasurer, all o f whom shall be appointed by and serve subject to the approval
of the National Board. Three members shall be appointed from nominations
made by the local union or unions involved, three members and the SecretaryTreasurer shall be appointed from nominations made by the local chapter of
the Association and one public member who shall be appointed from nominations
made by the six members thus selected. The Secretary-Treasurer shall not be
a member o f the local chapter or any of the local unions in the area, and shall
not have a vote on any matters before the Board. The Local Board shall select
its own Chairman from among its members.
Sec. 3. The members o f all Local Boards shall serve without compensation
or allowances, except such necessary expenses as the National Board shall
approve.
Sec. 4. The operating expenses, if any, o f each Local Board shall be paid by
the National Board. However, no expense shall be incurred without the prior
approval o f the National Board.
Sec. 5. The Secretry-Treasurer o f each Local Board shall furnish bond to
the National Board for faithful performance of his duties. The National Board
shall pay the premium on the bond and determine the amount in which it shall
be written in each case.
Sec. 6. Each Local Board shall be instructed and empowered by the National
Board as follow s:
(a ) To collect weekly from all electrical contractors (as hereinafter defined)
employing members of the Brotherhood within its territorial jurisdiction the
pay-roll assessments provided for in this agreement.
(b) To remit to the National Board on or before the 10th day o f each calendar
month all pay-roll assessments collected during the preceding month.
(c) To compile, file with the National Board and keep corrected a complete
list of all members of the Brotherhood in the area under its jurisdiction who are
employed or available for employment by electrical contractors as defined in
186
COLLECTIVE BARGAINING PROVISIONS
this Agreement. The information filed with the National Board shall also
include the age, health and employment record o f all such persons.
Sec. 7. The National Board may from time to time issue to Local Boards such
additional instructions and authority as may be necessary or as it deems proper.
Each Local Board shall conduct its activities in strict conformity with this
Agreement and with all instructions issued by the National Board.
A rticle V
Sec. 1. Each electrical contractor, as defined herein, who employs members
of the Brotherhood shall pay to such Local Board as may be designated by the
National Board an amount equal to 1% of the gross labor pay roll paid to any
electrical worker whose rate o f pay is established in the applicable local labor
agreement.
Sec. 2. These payments shall be made weekly by check or draft and shall be
accompanied by a pay-roll report in such form as may be prescribed by the
National Board. Each Local Board shall be authorized to investigate the ac
curacy of any report received. A penalty o f 10% of the payments due may be
imposed on any such electrical contractor (as defined herein) by the National
Board for failure to make payments when due.
Sec. 3. Should any electrical contractor cease employing members o f the
Brotherhood, or should the Brotherhood cease doing business with any electrical
contractor, then such contractor shall nevertheless be obligated to pay to the
Local Board having jurisdiction the required pay roll assessments on all work
fully or partially completed up to that time but not thereafter.
Sec. 4. Failure to comply with regulations adopted by the National Board
or by any of its Local Boards as approved by the National Board shall constitute
a violation o f this Agreement.
A
r t ic l e
VI
Sec. 1. The pay roll assessments provided for in Article V hereof shall be
the sole and final obligation resting upon the parties under this Agreement.
Sec. 2. The term “ electrical contractor” as used in this Agreement is defined
to mean any individual or form of organization whose business is the erecting,
installing, altering, repairing, servicing, or maintaining o f electrical wiring,
devices, appliances, or equipment, including the purchasing from suppliers and
the selling o f manufactured parts and products. Such individual or organization
shall have an established location where he transacts his business with the
public with a sign displayed announcing the character of the business, and shall
maintain proper books of accounts and records incident to the conduct of such
business.
Sec. 3. From and after the date upon which this Agreement is entered into,
all labor agreements or contracts entered into by the Brotherhood or by any
o f its local unions with electrical contractors, as defined herein, shall require
such contractors to comply with the terms of this Employees Benefit Agreement.
Sec. 4. Failure on the part o f any individual electrical contractor to comply
with the terms and conditions herein prescribed shall constitute a violation
of this Agreement so far as such defaulting contractor is concerned, but neither
the Association nor the other members thereof shall be in any way responsible
for such default.
Sec. 5. All monies received by the National Board and/or the Trustees, over
and above actual expenses, shall be administered as trust funds fo r the purpose
hereinbefore set forth. In the event that this Agreement shall be terminated
HEALTH, INSURANCE, AND PENSIONS
187
by mutual consent o f the Association and the Brotherhood or for any other cause,
all funds in the hands of the Board and/or the Trustees, after all expenses are
paid, shall be turned over to a Trust Company to be designated by the parties
hereto for the purpose of paying the Pension Benefits in effect until the funds
are exhausted.
Sec. 6. The Trustees of the “ Board o f Trustees o f the International Brother
hood of Electrical Workers Pension Benefit Trust Fund” accept this trust and
agree to hold all of the funds now or hereafter transferred to them hereunder
by the National Board subject to all o f the terms and provisions o f this Agree
ment, and in particular the provisions of Articles III-A and III-B .
M erchants’ L adies G arment A ssociation (N ew Y ork , N. Y.) and I nternational
L adies G arment W orkers’ U nion . R etirement F und of the Coat and S uit
I ndustry. A greement E ffective July 28, 1948
TWENTY-SECOND: A. The Retirement Fund o f the Coat and Suit Indus
try—a Fund of the Union—heretofore established under and pursuant to the
terms of the collective agreement entered into on the 28th day of June, 1948,
as of June 1st, 1948, between the parties hereto, and the Industrial Council of
Cloak, Suit and Skirt Manufacturers, Inc., and the Infants’ and Children’s Coat
Association, Inc., is hereby continued for the full term o f this agreement.
At the time of the establishment of the Fund, the parties hereto declared and
now reiterate:
The coat and suit industry in the Metropolitan District employs many
workers who, for many years, have contributed to its general welfare by
their skill, experience and loyal service. Many o f these workers have
reached or will soon reach an age at which they may find it desirable to
withdraw from all work o f any kind if they could spend their declining
years in some measure of comfort and security. The parties hereto recognize
this subject to be of special interest and concern to them and to their
members, and believe that a socially minded approach to it will be helpful
to the stability and well-being of the industry.
B. The Retirement Fund shall continue to be administered by a Retirement
Board of six representatives of the Union, the presidents and the executive
directors of the Merchants’ Ladies’ Garment Association, Inc., Industrial Coun
cil of Cloak, Suit and Skirt Manufacturers, Inc., and Infants’ and Children’s
Coat Association, Inc., respectively, and the following three public representa
tives : Hon. Arthur J. Altmeyer, Judge Jeremiah T. Mahoney and Mrs. Raymond
Y. Ingersoll. Any vacancy among the public representatives on the Retirement
Board shall be filled within fifteen days after the same occurs by the Union and
the associations’ members on the Retirement Board or, upon their failure to
agree, by appointment by the Mayor of the City of New York. All members of
the Retirement Board shall serve without compensation. In the event that the
Union and the associations’ representatives on the Board shall be deadlocked
on any matter which comes before the Board, the public representatives thereon,
by a majority vote of those present, shall have full power to decide the issue
and their decision shall be final and binding. No Trustee of the Retirement
Fund shall be liable for any act of omission or commission in connection with
the administration o f the Fund, except for his own malfeasance.
C. Each member of the Association shall pay to the Retirement Fund weekly
a sum equal to three (3% ) percent of the weekly wages (before deductions for
taxes) of all the workers in all crafts covered by this agreement employed in his
inside shop and in the shops o f his contractors and sub-manufacturers. No
worker shall make or be required to make any contribution whatsoever to the
said Fund. Each member o f the Association shall submit with each payment
two written statements to the Retirement Fund; one shall set forth the names
o f the workers employed in his inside shops, their social security numbers, their
188
HEALTH, INSURANCE, AND PENSIONS
189
crafts, their sex, the wages paid to them (before deductions for taxes), the pe
riod in which the payment was earned, and the number o f hours worked within
that period; the other shall state the full amount o f the payment remitted, how
much thereof is allocated to the pay roll o f his inside shop, how much thereof
is allocated to the pay roll o f his contractors’ and sub-manufacturers’ shops
and the period which the payment covers.
The Union reserves the right to recommend to the Association an improved
basis or method for computing the payments properly payable hereunder to the
Retirement Fund which will simplify and more quickly effectuate the collections
of the amounts due hereunder. I f no agreement is reached, the matter shall
be submitted to the public representatives of the Retirement Board at any meet
ing o f the Board and the decision o f a majority of the public representatives in
attendance shall be binding upon the parties hereto and shall be deemed to be a
modification of this provision in that respect.
D. The Retirement Fund is hereby declared to be an irrevocable trust and
the members o f the Retirement Board shall be the Trustees of the Fund. None
o f the moneys paid into the said Fund shall be used for any purpose other than
to retire workers in accordance with the Rules and Regulations adopted by
the Retirement Board and to pay the operating and administrative expenses
thereof, including the expenses o f maintaining the Fund on a sound actuarial
basis, and to pay for the maintenance of an office and expenses incidental to
the operation thereof, and the employment of necessary personnel and to pay
all reasonable counsel fees and disbursements incurred by the Fund.
E. All rules and regulations heretofore adopted and promulgated by the Board
and now in effect shall be deemed incorporated herein and a part hereof with
the same force and effect as if herein set forth in full. Immediately after the
execution o f this agreement, the Retirement Board shall convene to conform
its rules and regulations to existing law and to consider whether, in the light
of experiences gained during the period the Retirement Fund has been in exist
ence, amendments to the existing rules and regulations are necessary, including
amendments to those which deal with eligibility of workers for retirement
benefits. All rules and regulations, whenever adopted and promulgated by the
Board, may be added to, amended or modified from time to time whenever neces
sary to carry out more effectively the purposes o f the Retirement Fund and all
additions, amendments or modifications, when adopted, shall be deemed incor
porated herein and shall become part hereof with the same force and effect as
if herein set forth in full.
F. The Retirement Board shall, among other things, have the right to pass
upon each worker’s application for retirement, determine the number o f workers
which may be retired at any particular time and from time to time, maintain
the Fund on a sound actuarial basis, and set aside sufficient reserves for the
ensuing years.
G. Any member o f any local union chartered by the International in the
Metropolitan District employed (except for periods of lay-off, illness and the
like) by a member o f the Association or the Industrial Council of Cloak, Suit
and Skirt Manufacturers, Inc., or the Infants’ and Children’s Coat Association,
Inc., or by any of their contractors and sub-manufacturers who are members
o f the American Cloak and Suit Manufacturers Association, Inc., or by any
other firm which is in contractual relations with the Union or which has been
properly designated under Paragraph numbered “ SEVENTH” hereof, and whose
craft and conditions o f employment are included within this agreement, and who
COLLECTIVE BARGAINING PROVISIONS
190
has reached or reaches the age of 65 years during the term o f this agreement
and who otherwise qualifies for retirement under the rules and regulations of
the Retirement Fund then in effect and conforms thereto may make application
for retirement to the Retirement Board in such manner as the rules and regula
tions may prescribe. The rules and regulations may also provide for retire
ment of a member o f such local union who is otherwise eligible and qualifies
for retirement benefits but who has not been or is not employed as aforesaid
because of service as a full time paid elected or appointer officer o f the Union
or of any local affiliated therewith, provided, however, that the Unior or affiliate
local of which he is a member pays to the Retirement Fund weekly three (3 % )
percent of his wages.
H. Each member whose application for retirement is approved and granted
by the Board shall, upon execution o f whatever instruments the rules and
regulations established hereunder may provide, be entitled to receive the sum
of $50 each month from the Retirement Fund for the rest o f his life, irrespective
o f the fact that this agreement may terminate prior to his death and all bene
fits shall cease upon the death of the retired w orker: Provided, however, if, at
the time during the worker’s life, the benefits payable to him or her under or as
a result of any governmental act, Federal, State or city, shall be increased, then
and in such event the amount payable to the worker out o f the Retirement Fund
as above, viz., $50 each month, shall be affected as follow s:
1. I f such increased benefits shall be paid under or as a result o f an
Act which requires (a) no contribution or payment by way of tax or other
wise from the worker or the employer, or (b) contribution or payment by
way of tax or otherwise from the employer alone, then the amount o f such
increased benefits per month shall be deducted from the sum of $50 payable
each month from the Retirement Fund.
2. I f such increased benefits shall be under or as a result o f an Act
which requires contribution by way of tax or otherwise from the worker
alone, then no deduction shall be made from the $50 payable each month
from the Retirement Fund.
3. I f such increased benefits shall be under or as a result o f an Act which
requires contribution by way of tax or otherwise from both the employer
and employee, then and in such event the extent to which deduction for
increased benefits shall be made from the said $50 payable each month from
the Retirement Fund shall be determined on an equitable basis by the
Board.
I. It is the intention of the parties hereto to retire as many workers who
shall be qualified for retirement during the term of this agreement as there
shall be moneys available in the Fund to assure workers who are retired that
they will receive the sum of $50 each month from the Fund for each year of the
remainder of their natural lives (or such different monthly amount as may result
under the provisions of the last preceding paragraph). Whenever there shall be
a lack of sufficient funds to permit the granting of further applications for
retirement, the Board shall have the right to refuse to approve or grant further
applications until such time as there shall again be available sufficient funds for
that purpose. A rejected applicant or one whose application is not granted or
approved shall have no recourse against the Fund, the Board, the Union, the
Association, the Industrial Council of Cloak, Suit and Skirt Manufacturers,
Inc., the Infants’ and Children’s Coat Association, Inc., o f .any of the officers,
agents or members of any of them.
HEALTH, INSURANCE, AND PENSIONS
191
J. Any approval of an application for retirement shall be subject to cancel
lation by the Board in the event the worker who has been retired has misrepre
sented material facts in his application or has, after retirement, engaged in any
other gainful occupation.
K. All moneys paid into the Retirement Fund shall be invested in authorized
Federal, State or city securities, except such funds as in the sole judgment o f
the Board are required for current administrative and operating expenses and
to make benefit payments as the same accrue.
L. In the event that during the term of this agreement the Retirement Fund
should acquire a surplus in excess of the reasonable and adequate needs to carry
out the purposes of the Fund, and such surplus has been created (1) out of
increased benefits referred to in subdivision “ H” hereinabove, and (2) failure of
a sufficient number o f workers to apply for benefits under the Retirement Fund,
then upon the happening of both events the Association reserves to itself the
right to request the Board to reduce for temporary periods the percentage of its
pay roll which its members are required to pay hereunder, the original percentage
to be restored, however, if it shall be determined that the need therefor has
arisen. The Union shall have the right to oppose such application upon any
and all grounds which it shall deem to be appropriate.
M. Notwithstanding the expiration of this agreement, the Board created
herein shall continue to effectuate the purposes herein contained until all moneys
in the Retirement Fund have been paid out to the persons entitled thereto.
N. Payments made by a member of the Association to the Retirement Fund
and payments of benefits by the Retirement Fund shall not constitute or be
deemed wages. No member of the Association shall have any right, title,
interest or claim, legal or equitable, in or to any sum paid by him or by any
other members of the Merchants’ Ladies’ Garment Association, Inc., the Indus
trial Council of Cloak, Suit and Skirt Manufacturers, Inc., or the Infants’ and
Children’s Coat Association, Inc., or by any other employer, to the Retirement
Fund or against the Retirement Fund itself. No worker shall have any right,
title, interest or claim, legal or equitable, in or to his employer’s or any other
employer’s payments to the Retirement Fund. Rights' against the Retirement
Fund of persons entitled to benefits therefrom shall be governed exclusively by
this numbered Paragraph “TWENTY-SECOND,” and the rules and regulations
which provide the detailed basis upon which payments from the Retirement
Fund will be made. No benefits or moneys payable from the Reetirement Fund
shall be subject in any manner to anticipation, alienation, sale, transfer, assign
ment, pledge, garnishee, encumbrance or charge and any attempt to so antici
pate, alienate, sell, transfer, assign, pledge, garnishee, encumber or charge the
Fund shall be void. Nor shall any moneys paid in the Retirement Fund be subject
to or payable for the debts, contracts, liabilitiees, or torts o f any person entitled
to receive retirement benefits.
O. Audits of the Retirement Fund in respect to the trust herein created shall
be made at least semi-annually by certified public accountants to be designated
by the Retirement Board. A statement of the result of such audit shall be made
available for inspection of interested persons at the principal office of the Retire
ment Fund and at such other places as may be designated by the Retirement
Board.
P. The provisions herein relating to the Retirement Fund constitute a con
sideration for this agreement and are o f the essence of this agreement. Failure
by any member of the Association to pay the amount due from him hereunder to
the Retirement Fund shall be deemed a breach of this agreement by such member
192
COLLECTIVE BARGAINING PROVISIONS
of the Association. The Union shall be a proper party in interest to enforce
payment thereof in the manner provided under Paragraph numbered
“FIFTIETH” hereof. Accountants of the Retirement Fund shall be deputized
by the Impartial Chairman hereinafter designated to make examinations of the
books and records o f members o f the Association to ascertain whether the
amounts properly due from them to the Retirement Fund have been fully paid.
Q.
All of the foregoing provisions of this numbered Paragraph “ TWENTYSECOND” shall be incorporated in identical words (except for appropriate
intercharge of names of parties) in the agreements between the International
and the Union and the Industrial Council of Cloak, Suit and Skirt Manufacturers,
Inc., and between the International and the Union and the Infants’ and Children’s
Coat Association, Inc., which are intended to be executed simultaneously with the
execution of this agreement, and shall be incorporated in all independent agree
ments entered into by the Union.
B rown & W illiamson T obacco C orporation (L ouisville, K y .) and T obacco W orkers’
I nternational U nion (AFL), L ocal No. 185. R etirement P lan . A greement
E xecuted A pril 1949
The retirement plan, including permanent and total disability benefits, outlined
in summary attached hereto will be placed into effect by the company effective
as o f the date of execution of the union agreement and this schedule.
RETIREMENT PLAN SUMMARY2
Following is a summary of the provisions of the new proposed retirement plan
(hereinafter called the ‘‘Plan” ) to become effective as hereinafter provided.
Unless otherwise required by the context, the following terms as used herein
have the following meanings:
(1) “ Company” means Brown & Williamson Tobacco Corporation.
(2) “ Service” means regular full-time employment by the Company on an
hourly rated or piece-work basis, excluding all salaried employees and seasonal,
temporary and part-time employment; and “ continuous service” means service
uninterrupted by an absence without pay (other than sick leave), including
layoff, which has lasted over six (6) consecutive months.
(3) “Employee” means any person engaged in the service of the Company as
defined above.
(4) “Primary Social Security Benefit” means the primary insurance benefit
to which the employee himself is entitled under the Federal Social Security Act,
without reference to supplementary benefits payable to his wife or children.
(5) The “ normal retirement date” is the first day o f any month following the
attainment by an employee of his 65th birthday.
(6) “Total and permanent disability” shall be such disability as defined in
standard life insurance policies.
ELIGIBILITY
An employee to be eligible for a retirement benefit under the Plan must remain
in service to his normal retirement date, must retire, and must have completed
twenty (20) years o f continuous service on that date.
While employees will not be deemed to be included under the Plan until
they have attained age 30 and have completed five (5) years o f continuous
service, this requirement is for actuarial purposes only and any employee
regardless o f present age or service will be eligible for benefits upon retirement
after completion of requirements for eligibility set forth above.
RETIREMENT BENEFITS
Upon retirement at or subsequent to normal retirement date, an eligible male
employee will be entitled to a monthly income for life o f $100.00 per month,
inclusive of Social Security Primary Benefits which he becomes entitled to
receive, and an eligible female employee to a monthly life income of $85.00
2 From a descriptive booklet or related material.
193
COLLECTIVE BARGAINING PROVISIONS
194
per month, inclusive of Social Security Primary Benefits for which she becomes
eligible. Retirement is automatic at normal retirement date, unless deferred
with the consent of the employee and the approval o f the Board o f Directors
of the Company.
PAST SERVICE
Credit will be given for years of service prior to effective date o f the Plan
as well as to years of future service.
PERMANENT AND TOTAL DISABILITY
Eligibility
An employee is eligible for disability benefits after the completion o f the
number of years of continuous service specified below immediately prior to
permanent and total disability and who at such time is not on absence without
pay (other than sick leave) which has lasted over six (6) consecutive months.
Eligible employees who are found by the Board to be, before normal retirement
date, totally and permanently disabled from continuing employment or under
taking other employment will commence receiving disability benefits.
Disability Benefits
An employee who becomes totally and permanently disabled from continuing
or taking other employment will be entitled to disability benefits as follow s:
After ten (10) years of continuous service at any age such permanently and
totally disabled employee will be entitled to payments of $50.00 per month
in the case of males and $42.50 per month in the case of females, such benefits
to be inclusive of Primary Social Security Benefits to which the employee may
be entitled to receive.
After attainment of age 60 and the completion of fifteen (15) years of con
tinuous service at such date, such permanently and totally disabled employee
will be entitled to monthly payments of $75.00 per month in the case of males
and $63.75 per month in the case of females, such benefits to be inclusive o f
the Primary Social Security Benefits to which such employee may be entitled
to receive.
Permanent and total disability benefits will continue throughout the life
of the employee unless and until terminated in any of the following events:
(1) if, without the consent o f the Board, the employee accepts full-time or
part-time w ork;
(2) upon the failure o f the employee to undergo an examination at least
once a year by a physician designated by the Company;
(3) upon notice from the Company that, in its opinion and on the advice
of the examining physician, the employee is sufficiently recovered to
return to work, accompanied (a ) by a request to return to such work,
or ( b) by a notice to the effect that no work is available.
GENERAL
The Plan will become operative in the case of any employee represented by
a recognized collective bargaining representative only upon the negotiated con
sent o f the Company and such representative.
No contributions under the Plan are to be made by employees, as the entire
cost will be borne by the Company. There will be no death or partial disability
benefits under the Plan.
HEALTH, INSURANCE, AND PENSIONS
195
All benefits may be terminated with respect to any beneficiary who without
the approval o f the Company accepts employment with any competitor o f
the Company or engages in any activity in competition with the Company.
I f any employee who has been retired returns to service with the Company,
his pension shall be suspended for the renewed period of service.
Benefits under the Plan will be non-assignable by the beneficiary in any manner
whatsoever, including transfer by operation of law. If any employee or bene
ficiary is in the opinion of the Board incapable of handling his affairs or makes
or suffers any attempted transfer, whether voluntary or involuntary, of the bene
fits under the Plan, benefits under the Plan shall in the discretion of the Board
cease and payments thereof may be made or applied to or for the benefit of such
employee or beneficiary or his spouse, children or other dependents or any of
them in such manner and proportion as the Board shall from time to time deem
proper.
The Board and its committees and agents shall be the exclusive authorities
to administer, interpret, construe and apply the Plan, and its and their acts
shall be conclusive and binding upon all persons.
The Company reserves the right through action o f the Board to alter, amend,
modify, suspend or terminate the Plan in whole or in part at any time or from
time to time, provided that any such alteration, amendment, modification, sus
pension or discontinuance shall have no adverse effect on retirement annuities
theretofore purchased by the Company’s contributions. The Company shall not
be obligated to make any further contributions or deposits after such discontin
uance or during such period o f suspension.
It is the intention of the Company to insure the Plan and any benefits there
under, but it may at its option under the reserved power above referred to make
other arrangements in the future. All claims to benefits by employees or bene
ficiaries are subject to such reserved right of amendment or modification or
termination. The Plan confers no right upon any employee to be retained in
the service of the Company. The Plan shall not be construed as preventing the
Company from paying additional disability severance or retirement allowances
or death benefits or from making other provisions in any case where in the opinion
of the Board special circumstances exist.
In due course, a certificate or booklet will be issued to each employee under
the Plan, which will outline his rights under the Plan. The Company may adopt
rules and regulations in connection with the Plan and reserve the right to decide
on questions arising in the administration o f the Plan.
The Company in establishing this Plan has assumed that Social Security Bene
fits will be 50% o f the first $75.00 of average monthly earnings plus 15% o f
monthly earnings in excess of $75.00 plus 1% o f such amount for each year o f cov
erage. I f Social Security benefits are not increased at all or are increased to an
amount less than this formula, the Company will nevertheless pay the difference
between $100.00 per month in the case of men and $85.00 per month in the case
o f women and the Social Security benefits to which the employee is entitled.
If, however, Social Security Benefits are greater than those which would be pay
able under the above formula, then the benefits paid by the Company will be
the same as they would have been had the Social Security benefits been the
same as those payable under the above formula. Thus an employee will receive
an amount per month in excess o f $100.00 for men and $85.00 for women equal to
the amount by which the actual Social Security benefits exceed the assumed Social
Security benefits under the above formula.
G ary R ailways , I nc. (G ary, I nd. ) , and A malgamated A ssociation of S treet, E lectric
R ailway and M otor C oach E mployes of A merica (AFL), L ocal No. 517. R etire
ment A llowance P lan . S eparate A greement for R etirement A llowance P lan
D ated N ovember 10, 1943, as A mended T hrough M arch 22, 1948
Retirement allowances shall be paid to employees o f the Company in accordance
with the terms o f a separate Retirement Allowance Plan dated March 22,1948.
SEPARATE AGREEMENT2
for a
RETIREMENT ALLOWANCE PLAN
THIS AGREEMENT, made in duplicate this 22d day o f March, AD., 1948,
between GARY RAILWAYS, INC. (hereinafter for convenience called the “ Company” ), party o f the first part, and DIVISION NO. 517 OF THE AMALGAM
ATED ASSOCIATION OF STREET, ELECTRIC RAILW AY AND MOTOR
COACH EMPLOYES OF AMERICA (hereinafter for convenience called the
“Association” ), party of the second part;
WITNESSETH, T hat:
WHEREAS, the parties hereto did on the 10th day o f November, 1943 enter
into an agreement providing for a Retirement Allowance Plan for employees of
Gary Railways, Inc., and
WHEREAS, thereafter the parties did make certain amendments to said agree
ment by a Supplemental Agreement dated the 5th day o f July, 1946; and
WHEREAS, it is the desire of the parties to make further changes in or amend
ments to said agreement
NOW, THEREFORE, it is mutually agreed by and between the parties hereto
as follow s:
T itle
The Retirement Allowance Plan, which is the subject o f this Agreement, and
sometimes herein referred to as “Retirement Allowance Plan,” “ This Plan,” or
“ The Plan,” shall be known as GARY RAILWAYS EMPLOYEES’ RETIREMENT
PLAN.
ARTICLE 1. DEFINITIONS
A. “ Company” shall mean Gary Railways, Inc., and its successor or suc
cessors, grantees or assigns.
B. “ Employe” shall mean any employee of the Company.
C. “Association” shall mean Division No. 517 of the Amalgamated Association
o f Street, Electric Railway and Motor Coach Employees o f America.
D. “ Trustees” shall mean the Board of Trustees, more fully described in
Article 3.
E. The expression “ Continuous Employment” shall mean employment with
the Company continuously without break; however, any absence due to
leave of absence, sickness, injury off of the job, or temporary lay-off
8 From a descriptive booklet or related material.
196
HEALTH, INSURANCE, AND PENSIONS
197
on account of reduction in force, shall not break the continuity o f serv
ice, but if absence on one or more of foregoing grounds exceeds three (3)
consecutive years, the excess shall be deducted in computing the length
of employment. When service is required to be performed in any branch
o f the armed forces o f the United States, such time shall not be deducted.
I f a person is re-employed, for the purpose o f This Plan, he shall be
considered a new employee. In case of absences due to accident while
on duty, period o f discharge, if followed by re-instatement within three
(3) years, leaves o f absence while holding office in the Association, or
during which no services were rendered because o f strikes or lock-outs,
the period of absence shall not be considered a break in continuous
employment and shall not be deducted.
ARTICLE 2. OBJECT
The Plan is for the benefit of all employees o f the Company who shall become
eligible to receive a Retirement Allowance in accordance with its terms, also to
comply with Section 32 of the Wage Agreement with the Association, effective
April 24,1943.
ARTICLE 3. BOARD OF TRUSTEES
The Board o f Trustees shall consist o f eight (8) members, four (4 ) to be
appointed by the Company and four (4) to be selected by the Association.
All such members shall have had at least ten years o f continuous service with
the Company. All Trustees shall have Alternates to the end that there shall
be equal representation on the Board at all times.
The Board o f Trustees shall have power—
A. To make and enforce such rules and regulations, not inconsistent with
provisions of the Agreement, as in its opinion may be necessary, or
desirable, for the carrying out o f its duties, and for the efficient adminis
tration of The Plan.
B. To determine, according to the provisions herein set forth, the eligi
bility of an employee for retirement under This Plan.
The Board of Trustees shall select from its membership a Chairman, a ViceChairman, a Secretary, and a Treasurer, and all shall serve without
compensation.
The Board of Trustees shall meet at least once every three (3) months, and
a full Board shall be present at all meetings. Special meeting o f the Board may
be called at the request in writing o f four members of the Board.
The Trustees shall make an Annual Report to the Company and the Associa
tion, and shall make such other reports of the operation of The Plan deemed
necessary.
At least once a year the Trustees shall have an Audit made o f the funds
received, disbursed and held in the Treasury. The Trustees shall publish annu
ally to the employees such Audit.
All necessary expenses incurred by the Trustees shall be certified to, and
paid by, the Treasurer out of the funds held in the Treasury.
ARTICLE 4. RECORDS
The Company shall keep all records, compile all data, accept all applications
for retirement, and submit such applications to the Trustees for certification.
The Trustees shall have the right, at all times, to call for additional information
concerning any or all applications forwarded to the Trustees, and to examine
all records or data pertaining to The Plan.
875403°— 50----- 14
COLLECTIVE BARGAINING PROVISIONS
198
ARTICLE 5. CONTRIBUTIONS TO THE FUND
All employees participating in The Plan, except those drawing Sick Benefits
or Workmen’s Compensation, will contribute $3.50 per month.
In addition any employee who began or shall begin contributing to The Plan
at any time subsequent to his or her 30th birthday shall reimburse The Plan as
follows, to w it: By paying into the fund a sum equivalent to $1.00 per month
for each month which has elapsed between the date of his or her 30th birthday
and the month in which he or she becomes a contributor to The Plan, such sum
to be paid in the following manner:
1. By monthly payments from wages or salary at the rate o f $1.00 per month
commencing with the month of April, 1048, which payment shall be
in addition to his or her regular contribution of $3.50 per month.
2. By deduction from pension payments at the rate o f $5.00 per month for
any balance o f such sum which is unpaid at the date o f retirement.
The Company will contribute monthly an amount equal to the total contributions
o f participating members. Should the annual cost of retirement allowances paid
in any calendar year exceed the amount of contributions to the Ketirement
Allowance Plan during that year, the Trustees shall have the power to increase
the rate of contributions by the employees, in which event the amount to be
contributed by the Company shall be increased accordingly.
Any employee leaving the service for any cause shall have refunded to him,
or in event of death while not receiving a Retirement Allowance hereunder, to
his or her heirs, out o f the fund, an amount equal to his or her total contributions
to the fund, less any payments which such employee may have received under this
Retirement Allowance Plan.
An employee may not withdraw his contributions so long as he remains in the
service of the Company, or borrow against it or assign the same at any time.
The total monthly contributions of the employees and the Company shall be
forwarded to the Treasurer not later than the Fifteenth (15th) day of each and
every month for all contributions made during the preceding month.
The Company’s liability to the employees, on account o f this Memorandum of
Agreement, shall not extend beyond the contributions to be made by it to the
Retirement Allowance Plan, which shall be the contributions herein set forth.
As contributions by the Company are made to the Treasurer, they become assets
of the Retirement Allowance Plan for the benefit o f the employees, and can in
no way be returned to the Company, or be subject to the debts, liabilities, or
obligations of the Company, or be considered a part o f its property or assets
for any purpose whatsoever.
ARTICLE 6. RETIREMENT ALLOWANCE
Any member o f the Retirement Plan now receiving benefits from The Plan
shall continue to receive the same monthly allowance as said member is now
receiving.
Any member of The Plan who may hereafter retire under the provisions of
The Plan shall receive a Retirement Allowance as follow s:
I f retiring during the year 1946------$40 per month for life.
I f retiring after the year 1946_____$45 per month for life.
ARTICLE 7. TOTAL AND PERMANENT DISABILITY
Any employee o f the Company who shall hereafter become totally and per
manently disabled for continuous employment with the Company, by reason o f
HEALTH, INSURANCE, AND PENSIONS
199
an accident arising out o f and in the course of his employment with the Com
pany, shall be entitled to receive a Retirement Allowance for life. I f at any time
the Board of Trustees finds the disability was not total and permanent, it shall
have the power to order discontinuance of payment above mentioned.
Any employee becoming totally and permanently disabled for continuous em
ployment with the Company from any cause not as a result of an accident arising
out of and in the course of his employment with the Company, having completed
more than fifteen years and less than twenty years of service shall receive 1/20
o f the total amount allowable under The Plan for each year of service. Any
such employee having twenty or more years o f service shall receive the full
amount of Retirement Allowance provided for in this Agreement. If any person
while receiving benefits under this paragraph shall at any time receive or earn
an income from any source, either cash or otherwise, equal to $150.00 or more
per month, then the benefits provided above shall cease during the period in
which such income is received or earned. In addition, if any person while
drawing benefits under the provisions of this paragraph shall have also received
or earned an income of $150.00 or more per month, or $1,800.00 or more per year
during any twelve (12) month period in which any benefits were received, such
person shall reimburse the pension fund a sum equal to those benefits which
were drawn while such person was receiving or earning said $150.00 or more
per month or said $1,800.00 or more per year. Any reimbursements due the
fund under this paragraph shall be made in the following manner: (a ) By cash
refund payments; (b) By deductions from future pension payments, if any, for
any balances which are due the fund. Qualifications for benefits under this
paragraph are to be determined in the discretion of the Board of Trustees.
Any present employee retiring at the age provided for under The Plan and
having completed more than ten years and less than twenty years of service,
shall receive 1/20 of the total amount allowable under The Plan for each year
of service.
Any future employee over the age of 55 at the date o f employment shall not
participate in The Plan.
ARTICLE 8. ELIGIBILITY
A. Any employee who has 20 years, or longer, o f continuous employment will
be eligible for retirement on the date he becomes 65 years o f age.
B. Any employee with 20 years, or longer, o f continuous employment, and who
shall have attained 65 years of age, will be eligible for retirement on
the effective date of The Plan.
O. Any employee on leave of absence from the Company and holding office in
the Association on the effective date o f The Plan, or any employee who
may thereafter hold office in the Association, shall be eligible for re
tirement when he becomes 65, or is 65 years o f age, or older, with 20
years o f continuous employment.
D. Any employee who has 25 years of continuous employment and who shall
have attained 60 years of age or more shall be eligible for retirement
and shall have the privilege of retiring or continuing his regular em
ployment with the Company.
ARTICLE 9. PAYMENT TO THOSE RETIRED
Retirement Allowances shall be paid on the last day o f each month from the
time o f actual retirement, as certified by the Trustees, and cease with the payment
covering the month in which his or her death occurs.
COLLECTIVE BARGAINING PROVISIONS
200
A Retirement Allowance shall not be paid during the period a retired employee
returns to active duty with the Company.
ARTICLE 10. DISABILITY OB UNEMPLOYMENT PAYMENTS
No monthly Retirement Allowance shall or will be paid while any employee is
drawing Unemployment Insurance Payments, or Accident, Sickness, or Disability
Payments under the Company Group Insurance, or Workmen’s Compensation
Benefits, except that should the total of the above payments not equal the amount
of the Retirement Allowance in any one month, the Trustees will certify to the
Treasurer a sum sufficient to make up the difference.
ABTICLE 11. ASSIGNMENTS
To the end of making it impossible for retired employees to improvidently
imperil the provisions herein made for their support and welfare, by directly or
indirectly anticipating, pledging or disposing of their retirement payments here
under, it is hereby expressly stipulated that No Employee, or Retired Employee,
hereunder shall have any right to assign, transfer, hypothecate, encumber, com
mute or anticipate his interest in any retirement payments, and that such pay
ments shall not in any way be subject to any legal process to levy upon or attach
the same for the payment of any claim against any employee.
Any one receiving a Retirement Allowance due to retirement on account of
age may be employed in any business other than that of the Company, or the
Association, which is not prejudicial to the interests of the Company, or the
Association, without in any way affecting the payment to him of his Retirement
Allowance.
ABTICLE 12. GENEBAL PBOVISIONS
A. In case of incompetency, either mental or physical, o f an employee who
has retired, or is eligible for retirement, payments will be made to
such person, or institution, who has satisfied the Trustees as to his,
or its, right to receive said payments for such employee.
B. Retirement and the acceptance o f a Retirement Allowance are voluntary,
except that the Company reserves and shall have the right, without the
consent of the employee, to retire upon a Retirement Allowance any
employee, 65 years of age, or older, and with 20 years o f continuous
employment, or longer, who, in the judgment of the Company, is no
longer able to perform his or her duties satisfactorily.
ABTICLE 13. PERIOD OF AGREEMENT AND MISCELLANEOUS PROVISIONS
THIS AGREEMENT shall not become effective until approved by the United
States Treasury Department. If approved by the United States Treasury De
partment then THIS AGREEMENT shall become effective as of April 1, 1948,
and shall remain in force up to and including June 30,1950, and shall continue
thereafter subject, however, to the right of either party, after June 30, 1950, to
open same for amendment or revision upon giving at least thirty (30) days
written notice to the other party.
In the event that no agreement is reached on requested amendments or re
visions by either side, then at the request of either side the matters in issue
will be submitted to arbitration.
The Board o f Arbitration, for this purpose, shall consist of three (3) persons,
one (1) appointed by the Company, and one (1) by the Association, and the
third shall be selected by the two thus chosen. The decisions of the majority
of the Board shall be binding upon the parties. Until the decision o f the Board
HEALTH, INSURANCE, AND PENSIONS
201
of Arbitration is submitted in writing to both parties, the provisions o f this
Agreement, with such modifications and amendments as may have been agreed
upon by the parties hereto, shall continue in effect.
It is expressly understood and agreed, however, that the provisions of the
first paragraph of Article 5 of this Agreement providing for a contribution by the
Company of an amount equal to the total contributions of participating mem
bers, shall not be changed and shall not be the subject of arbitration under any
circumstances, nor shall any proposed amendments or revisions o f this Agreement
relating to such equality of contribution become effective or be the subject of
arbitration.
It is also expressly understood and agreed that the obligation o f the Company
to make its payments specified herein is conditioned upon the obligation of the
employees continuing to make their contributions specified herein, and should
the employees at any time during the term of this Agreement refuse to continue
making their said contributions, this Agreement will thereby be immediately
terminated and the obligation of the Company to make any future payments
whatsoever, for the benefit o f the employees not yet retired, shall cease. The
Company shall have the right, if it shall so desire, to make advance payments
to the Fund to be applied against future contribution obligations.
This Agreement incorporates the original Agreement for a Retirement Allow
ance Plan (dated November 10, 1943) as it has been amended to date. It is
understood and agreed, however, that any rights which accrued under the terms
of the original Agreement or its amendments shall be determined according to the
terms o f the Agreement which were in effect at the time that the rights accrued.
THIS AGREEMENT is and shall be deemed to be the “ Separate Agreement”
for a “ Retirement Allowance Plan” referred to in Section 29 of the separate
Wage Agreement between the parties hereto.
John D eere H arvester W orks of D eere and Company (E ast M oline , I I I .) and
I nternational U nion , U nited A utomobile , A ircraft and A gricultural I mplement
W orkers of A merica (CIO), L ocal N o . 865. D eath , D isability , and P ension P lan
This agreement made and entered into this 10th day o f June, 1049, by and
between John Deere Harvester Works o f Deere & Company, East Moline, Illinois,
hereinafter called the Company, and the International Union, United Automobile,
Aircraft and Agricultural Implement Workers of America (affiliated with the
Congress of Industrial Organizations), and its Local 865, hereinafter called the
Union, on behalf of the employees in the bargaining unit it represents.
I. During the term o f this agreement the Company agrees to carry out, and
the Union agrees to accept, the “John Deere Death, Disability and Pension Plan,”
hereinafter called the Plan, which is attached hereto and marked Exhibit “A ”
for identification.
II. The Union, on behalf o f the employees it represents, may present questions
concerning the administration of the Plan by the Company. Such questions
relating to the administration of the Plan shall not be processed beyond Step D
o f the Grievance Procedure provided for in the Collective Bargaining Agreement
between the Company and the Union [i. e., last step prior to arbitration].
III. During the term of this agreement, the Company shall not exercise its
option, under Section 10 o f the attached John Deere Death, Disability and Pen
sion Plan.
IV. This agreement shall not become effective unless and until ratified by the
membership of Local Union 865.
V. It is agreed that this agreement shall be subject to the right of either party,
upon sixty (60) days written notice prior to May 6,1950, to open said agreement
once only, for the sole purpose of negotiating on the question o f changing this
agreement or the Plan.
It is understood and agreed that the provisions of Article X, Strikes and Lock
outs, in the Collective Bargaining Agreement between the parties, shall not be
applicable to any dispute which may arise as a result of negotiations under this
part of the agreement and that any such dispute shall not be subject to review
through the Grievance Procedure or arbitration as provided in the Collective
Bargaining Agreement between the parties.
VI. This agreement shall remain in full force and effect until the 1st day of
September, 1951, and thereafter from year to year, unless sixty (60) days prior
to such dates either party gives notice in writing o f a desired change in or ter
mination of this agreement.
E x h ib it A
Section 1
1.
For the purpose o f promoting the mutual interests o f Deere and Company
and the Employees of its various organizations, including subsidiary factory and
branch house organizations (said organizations hereinafter designated as “ Em
ployers” ), the following plan has been adopted and will be known as the John
Deere Death, Disability and Pension Plan.
202
HEALTH, INSURANCE, AND PENSIONS
203
2.
Except as hereinafter provided, the cost o f providing pensions and other
benefits under this plan will be borne by the Employers.
Section 2
1. Death and Disability benefits will apply to all employees who have been con
tinuously on the pay roll of the Employers for at least six months and who are
not members o f the John Deere Group Benefit Association.
2. No benefits will be provided or paid under this plan during the first 6 months
of service, nor for death or disability resulting from any cause or causes which
make the Employers or any one of them liable under any workmen’s compensation
act or other law.
*
♦
*
♦
*
*
*
DEATH BENEFITS
Section 3
1. An employee after six months o f continuous service from date o f hiring
will be entitled to a death benefit o f $500 during the next four and one-half years
o f continuous service.
2. An employee having completed his fifth year and until he has completed his
tenth year of continuous service will be entitled to a death benefit o f $1,000.
3. An employee having completed his tenth year and until he has completed
his fifteenth year o f continuous service will be entitled to a death benefit o f
$1,500.
4. An employee having fifteen or more years o f continuous service credit at
the time o f his death will be entitled to a death benefit o f $2,500, which is the
maximum death benefit under the plan.
5. Such benefits, however, will be paid only in the event o f the employee leaving
one or more of the following relatives or dependents:
{a)
(b)
(c)
(d )
Husband or wife
Dependent minor children
Father or mother
Benefits may, at the option of the employers, be extended to other rela
tives or dependents, but only for such amount and for such a period
as the Employers may determine in each individual case.
6. Where an employee dies leaving none of the relatives or dependents listed
under (a ), (b ), or (c) of the above paragraph, a death benefit ($500) or the
part thereof necessary shall be applied to funeral expense only after the cash
funeral payment due the deceased from the Federal Government under the Social
Security Act has been exhausted.
PERMANENT TOTAL DISABILITY BENEFITS
Section 4
1. I f an Employee before reaching age 65 becomes totally disabled by bodily
injuries or disease and will, in the judgment of the Employers, remain perma
nently and continuously disabled and wholly prevented for life from pursuing
any and all gainful occupations, a sum equal to the amount o f death benefits
which would have been paid had such Employee died in the service at the time
the disability occurred will be paid in installments, as the Employers may elect,
provided, however, that if and when the Employee becomes eligible for a Federal
Pension such payments will cease.
204
COLLECTIVE BARGAINING PROVISIONS
2. Such disability payment will be in lieu of any and all payment which might
otherwise be made under this plan. If such an Employee dies leaving one or more
dependents or relatives such as described in Paragraph 5, Section 3, any in
stallments remaining unpaid will be paid, as they become due, to such relatives
or dependents.
DISCONTINUANCE OF BENEFITS
Section 5
When an Employee leaves the service of the Employers unless because of
permanent total disability as provided fo r herein, or is dismissed from the serv
ice, or is dropped from the pay roll for an indefinite period,12 any and all death
and disability benefits under this plan shall terminate and upon re-entering the
service of the Employers, such an Employee will be required to again render the
same length of service and in the same manner as required of those entering
the service for the first time, except:
(a)
A change or transfer from the service of one Deere & Company organiza
tion directly to that of another Deere & Company organization, with the knowl
edge and consent of the Employers affected, will not be considered as a discon
tinuance of service.
(&) M il it a r y S ervice . I f an Employee resigns for the express purpose of
entering and does enter the military service of the United States or its allies
during a war and re-enters the service o f the Employers at the end o f such mili
tary service, the period o f continuous service last rendered before so resigning
and the period of time spent in such military service will both be counted incomputing any pension or other benefit payments which may become due under
this plan, but no benefits will be payable during the period of absence from the
service of the Employers.
P E N S IO N B E N E F IT
Section 6
1. Any Employee who attains the age of 65 in the service of the Employers,
and who has been in the service of the Employers continuously for 20 years or
more, may retire or be retired from active service and become eligible to a pension.
2. The amount of pension payments allowed annually will in each individual
case be equal to 1% % of the average annual wage during the last ten years of
service, for each year o f continuous service, last rendered, but no pension shall
be less than $65 per month, provided, however, that the amount which otherwise
would be paid under this plan will be reduced by the amount which such Em
ployee receives under the Social Security Act. In determining the amount so
received by any Employee from the Federal Government, any amount received
by the wife of such Employee from the Federal Government will not be considered.
3. Pension payments shall be made monthly from the date of retirement until
death.
4. Should a pensioned Employee die, leaving one or more dependents or rela
tives such as described in Paragraph 5, Section 3, before the sum of pension
payments received equals the amount o f death benefits which would have been
paid had the Employee died in the service during the year in which he became
eligible to a pension, then the difference between the sum of pension payments so
received and the amount of such death benefits will be allowed.
12 The clause “ or is dropped from the pay roll for an indefinite period” as used herein
is not intended to apply to an Employee regularly employed, the payment of whose wage
is temporarily discontinued during a regular vacation period or during a regular shut-down.
HEALTH, INSURANCE, AND PENSIONS
205
5.
At the discretion of the Employers, a pension or other benefits may be
granted, to an Employee who attains the age of 65 in the service of the Employers,
but who has not been continuously in the service 20 years, or to an Employee who,
after 20 consecutive years or more of continuous service, is retired from active
service before attaining age 65, but in such a case an alowance shall be only for
such amount and for such a period as the Employers may determine.
BENEFITS AFFECTED BY PENSION PAYMENTS
Section 7
When an Employee becomes eligible to a pension provided by the Employers,
any and all other benefits provided under this plan shall terminate, and no
benefits other than the pension payments will be paid hereunder, except as pro
vided in Paragraph 4, Section 6.
Section 8
Should an Employee retiring from the service of the Employers and otherwise
entitled to a pension, be receiving or subsequently receive from the Employers
or any one of them any sum or sums of money under any workmen’s compensa
tion act or other law the amount so received under such compensation act or
other law will be deducted from the amount which would otherwise be payable
under this plan.
INDEBTEDNESS OF EMPLOYEES TO EMPLOYERS
Section 9
Any indebtedness of the Employee to the Employers shall be deducted from
the amount of any pension payments or any other benefits due under this plan,
and only the balance paid to the Employee, heirs, or dependents, as the case
may be.
DURATION
Section 10
Except as otherwise specifically provided, this plan shall be subject to modi
fication or termination by the Employers.
C ircle W ire and C able C orporation (M aspeth , L ong I sland, N. Y.) and I nterna
tional B rotherhood of E lectrical W orkers (AFL). E mployees Security F und.
A greement E ffective J une 1,1948
The Empoyees’ Securities Fund, entered into by the parties, is hereby made
part of this working Agreement. The Hospitalization, Pension, and Disability
Plan shall be contributed to by both the Employees (1 % ) and the Employer
( 2% ) .
The parties agreed to incorporate insurance in the Employees’ Securities Fund.
THE EMPLOYEES’ SECURITY FUND2
of the
“ EW” DIVISION
WITNESSETH:
WHEREAS, the Employers engaged in the manufacture o f electric wire and
cable and the Union have entered into agreements and working rules on different
dates in 1945; and
WHEREAS, Rule 8 of said agreements reads as follow s:
“ It is agreed that a committee will be formed as quickly as possible for
the purpose o f determining a proper pension plan that would be suitable and
feasible, in keeping with the conditions and circumstances that would apply
to the Employer” ; and
WHEREAS, the said agreements entered into between the Employers and the
Union contemplated the consummation of a plan under Rule 8, referred to herein
above; and
WHEREAS, the Employers and the Union believe it to be best for their mutual
interests and the public to provide opportunities for the retirement from active
service o f members of the Union who have reached the age of sixty (60) years
and thereby to increase the work opportunities for younger men and women and
to provide hospitalization, disability, and insurance premium benefits;
WHEREAS, to that end the parties desire to form and administer such fund,
hereinafter referred to as the “ Security Fund” ; and
WHEREAS, part o f the consideration for the Union entering into the respective
agreements with the Employers covering the employment of their members con
stitutes the recognition by the Employers that there is a responsibility to their
employees who have grown old or who become sick and disabled, all of which
tends to stabilize conditions and bring about a harmonious relationship between
the Employers and their employees;
NOW, THEREFORE, the parties hereto agree as follow s:
1. The parties hereto establish a fund to be known as “The Employees Security
Fund” hereinafter called the “ Fund” and the benefits herein set forth shall be
administered by a Joint Security Committee, hereinafter called the “ Committee.”
2. (a) The Committee shall consist of six (6) Employer representatives to be
designated in the manner as agreed upon by the Employers, and six (6) Union
2 From a descriptive booklet or related material.
206
HEALTH, INSURANCE, AND PENSIONS
207
representatives to be appointed by the Union. Any vacancy in the Employer
members of the Committee, however, occurring, shall be filled by the Employers,
and any vacancy in the Union members of the Committee, however, occurring,
shall be filled by the Union.
(&)
The Committee shall select from among its members a Chairman, a ViceChairman, a Treasurer and a Secretary. Two of the foregoing offices shall at
all times be occupied by Employer and two by Union members o f the Committee,
and all action of whatever kind of the officers must be taken jointly by two of
those officers, of whom one shall be an Employer and the other a Union member
o f the Committee. The Committee shall appoint an Executive Secretary.
3. The Committee may adopt rules and regulations for the administration of
the Fund and the conduct o f its affairs which are not inconsistent with any o f
the provisions of this agreement.*
4. (a.) Any act which this agreement authorizes or requires the Committee to
do may be done by nine (9) members of the Committee at any time acting here
under and the action of nine (9) such members, as recorded from time to time
by vote at a meeting, shall constitute effective action for all purposes o f the
Committee. In the absence of the full Committee membership of either Em
ployers or Employees, those members of such group present shall have the
power to and are hereby authorized to cast the vote for those absent so that
at all times each group shall have six (6) votes.
(b)
In the event o f a deadlock resulting from failure of the Employer and
Employee representatives of the Committee to agree on a matter relating to the
administration of the Fund, then and in that event the Committee shall appoint
an impartial umpire to decide such dispute and upon the failure of the Committee
to agree, within a reasonable length of time, upon the selection of an impartial
umpire, either the Employer or Employee representatives of the Committee may
petition the United States District Court for the Southern District o f New York
for the appointment o f such impartial umpire.
5. The determination in good faith by the Committee o f any matter or question
under this agreement shall be final and conclusive.
6. The members of the Committee shall serve without compensation, but all
reasonable expenses incurred by the Committee, including clerical and other
assistance, shall be borne by the Fund.
7. No member of the Committee shall be liable for anything done or omitted
to be done hereunder so long as he was acting in good faith and was free from
fraud.
8. The Committee shall keep full and complete records of the administration
of the Fund, which records shall be open to inspection at all reasonable hours by
any contributing Employer, or by the duly authorized officials of the Union or by
the duly authorized representatives o f any such Employer or authorized Union
official. Annual audits shall be made by Certified Public Accountants, employed
by the Committee, and a statement o f the results of such audits shall be available
for inspection by the Employers, the Union, and the members at the principal
office of the Committee.
9. The Committee shall adopt application forms and every applicant shall be
required to answer accurately and completely all questions on such forms. The
Committee’s action in approving or disapproving any application shall be final.
10. The Committee is empowered to grant benefits hereunder in exceptional
cases and to avoid hardship to employees who may not be completely eligible
within the requirements herein imposed.
COLLECTIVE BARGAINING PROVISIONS
208
11. The money constituting the Fund shall be raised by the joint contribution
of the Employers and the Union, as provided in this and in the succeeding article.
{a) Each Employer who has become a party hereto shall contribute an amount
equal to 2% of the weekly wages of all the workers of such Employer who are
members of the Union.
(6) The Employees agree to contribute 1% of such wages weekly, which
the Employer shall deduct from the wages of all such workers referred to in
“ 11 ( a ) ” hereof, providing the authorizations and resolutions hereinafter referred
to are duly executed.
(c) The contributions referred to in “11 ( a ) ” and “ 11 (&)” shall be paid
over weekly to the “Funds.” Reports shall be filed as required by the Committee.
(d) The Employer shall at no time be required to contribute to the Fund any
sum in excess of an amount equal to 2% of the wages of the contributing workers,
as prescribed in the preceding article.
(e) The Committee shall adopt a form of written authorization by which each
individual employee authorizes his or her Employer to make the deduction of
1% from his or her wages, hereinbefore provided for, and the Union undertakes to
procure the signature of every employee to the form of authorization so adopted.
The Union will call a meeting for the purpose of authorizing any and all reso
lutions to carry out the provision of this agreement. If any employee shall fail to
sign an appropriate authorization for the deduction of the 1% to be contributed
by him or her to execute such instruments as may be effective, the Employer
shall not be required to make any contribution covering said employee. The
contributions to the Fund herein provided for shall begin with the pay-roll week
ending December 7,1945.
( / ) Sixty-six and two-thirds percent (66% % ) of all monies collected from the
Employers and the employees as hereinabove provided shall be deposited in a
separate fund to be known as the “ Pension Trust Fund” which fund shall be used
exclusively for the payment of pension benefits as hereinafter provided. The
remaining thirty-three and one-third percent (33% % ) of all such monies collected
shall be deposited in a separate fund to be used for the payment o f disability,
hospitalization, and insurance premium benefits. The Employer and the Union
agree from time to time to increase or decrease the percentage payments to the
Pension Trust Fund, as herein provided, such increase or decrease to be depend
ent upon the sufficiency of the Pension Trust Fund to meet all obligations there
under, including the setting up of adequate reserves. In no event, however,
shall the funds deposited in the Pension Trust Fund for payment o f pensions be
used for any other purpose other than the payments of pension benefits as
hereinafter provided.
12. There shall be four (4) types of Benefits, which shall be known as (a) The
Standard Pension Benefits, (6) The Disability Pension Benefits, (c) The Hos
pitalization Benefits, and ( d) The Insurance Premium Benefits.
(a) The Standard Pension Benefits shall be made available t o :
Any employee, male or female, who has attained the age o f sixty (60)
years and (1) who is a member in good standing in the Union and is em
ployed by a contributing Employer and (2) who has at the filing of his or
her application for standard pension benefits hereunder been employed for
at least five (5) years by such Employer, or who has been a member of the
Union in good standing for at least five (5) years immediately preceding
his or her application, and has been employed by one of the contributing
Employers.
HEALTH, INSURANCE, AND PENSIONS
209
(&) The Disability Pension Benefits shall be made available to:
Any employee, male or female, (1) who is a member in good standing in
the Union, and is employed by a contributing Employer and (2) who has at
the filing of his or her application for disability pension benefits hereunder
been employed for at least five (5) years by a contributing Employer, or
who has been a member of the Union in good standing for at least five (5)
years immediately preceding his or her application and has been employed by
one of the contributing Employers, and who is not eligible to the Standard
Pension Benefits, and who is permanently incapacitated or who is disabled
to such an extent that he or she can no longer secure gainful employment in
the electrical or any other line of business (the Committee to be the sole
judge of the facts).
*
*
*
*
*
*
*
Employees of the contributing Employer in the Armed Forces will be credited
for the period of time that they are in the service. Simultaneously with the
execution hereof, the Union has prepared for delivery to the Committee to be
appointed, pursuant to the terms hereof, a list o f its members who, except for age,
would be eligible to receive benefits hereunder.
13. The benefits provided herein shall be as follow s:
(a) The Standard Pension Benefit shall be Forty Dollars ($40.00) per month.
(&) The Disability Benefit shall be Forty Dollars ($40.00) per month.
*
*
*
*
*
*
*
14. Should any retired employee again work, all payments to him hereunder
shall forthwith be discontinued.
15. The Committee may, for grounds deemed adequate by it, rescind its approval
of any application, either before or after benefit payments have been made, and
immediately upon such rescission all benefit payments to the employee affected
shall be discontinued and such employee shall have no right or claim of any
kind hereunder against the Committee, the Union, or the Employers.
16. Failure on the part of any Employer to adhere to the provisions of this
Agreement shall constitute a violation of the collective labor agreement so far
as such defaulting Employer is concerned, but no other Employer shall be
financially responsible for such default, and no stoppage, strike, or withdrawal
of other benefits under the collective labor agreement on account of such default
shall affect Employers who are not in default.
17. The Union agrees that on and after this date it will not enter into any
agreement with any Employer manufacturing products similar to those manu
factured by the Employers not a party to this agreement, for the employment
of any of its members for a period commencing after November 30, 1946, unless
one o f the conditions of said agreement is an undertaking by such Employer to
become a party to this Agreement by signing a counterpart hereof.
18. All monies received by the Committee shall be administered as a trust
fund for the benefit of those entitled to benefits hereunder. Such funds as the
Committee may have on hand available for investments shall be invested only in
such Federal, State, or Municipal securities as are legal for investments under
the laws of the State of New York.
19. I f at any time while this agreement is in effect, the net amount o f funds
are less than Twenty-Fve Thousand Dollars ($25,000.00), the Committee shall
not receive or entertain any applications unless and until the funds have again
reached a net minimum of not less than Twenty-Five Thousand Dollars ($25,000.00). The Committee may, if it deems the funds on hand insufficient, refuse
210
COLLECTIVE BARGAINING PROVISIONS
to entertain further applications, or may place a numerical limit on those to
receive benefits hereunder.
20. The parties hereto, may at any time and from time to time, modify this
agreement in any o f its terms or terminate the same in its entirety, and neither
the making of this agreement nor the creation o f any fund pursuant thereto
shall be construed as giving any employee or any person whatsoever any legal
or equitable right against the Union, any Employer, the Committee and/or any
fund, except such right as is specifically provided for herein or given by action
of the Committee duly taken in accordance with the provision hereof and with
the further exception that at no time shall the contributing Employer’s partici
pation in this Fund or any subsequent Fund exceed 2% of gross pay roll o f par
ticipating employees.
21. Any monies contributed to the Fund by an Employer or Employees shall
thereupon belong to the Fund to be administered pursuant to the terms hereof,
and no contributing Employer or Employee shall have the right, title or interest
in any sum so contributed. No Employee shall have any right or claim, legal
or equitable hereunder, unless and until the Committee has approved his or her
application, in which case the rights shall be limited to those awarded by the
Committee, and shall be enforceable not by the individual Employee affected but
by the Union.
22. In the event that the collective labor agreement between the parties hereto,
or any extension or modification thereof, shall lapse or terminate for any reason,
and no new labor agreement is made between the parties, then ninety (90) days
thereafter this agreement shall terminate and all monies (after payment of ex
penses) then on hand shall be applied to the payment of all benefits then in effect
hereunder, including the setting up of appropriate reserves, either through a
trust company or otherwise, until the funds are exhausted, and if upon the
satisfaction of all benefits a balance remains on hand, such balance shall be paid
for the benefit of the Employees qualifying under this plan in some equitable
manner.
23. As long as this agreement is in effect, benefit payments shall be made in
accordance with its provisions to employees whose applications have been ap
proved by the Committee, but all payments shall automatically terminate on the
death of the Employee, except as otherwise hereinbefore limited.
24. Notwithstanding anything contained in this Agreement it shall be impos
sible, at any time prior to the satisfaction of all liabilities with respect to
Employees entitled to benefits hereunder, for any part of the corpus or income of
the trusts hereby created to be used for or diverted to purposes other than the
exclusive benefit of such Employees.
25. In the event that this Agreement terminates by operation o f any provision
hereof, or by mutual consent of the parties, then (a ) no one affected thereby
shall have any right or recourse of any kind against the fund, and (b ) the funds
then on hand shall be applied as prescribed in Article “ 22” hereof.
26. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, and the said counterparts shall constitute but
one and the same instrument and may be sufficiently evidenced by any one
counterpart.
27. In the event Federal Legislation that will liberalize social benefits is en
acted and such benefits are equal to or better than benefits in this plan, then that
portion o f the plan concerned with such benefits shall be eliminated by action
of the Committee.
Coleby T ailoring Company (M ember of P hiladelphia C lothing M anufacturers
A ssociation , P hiladelphia , P a .) and P hiladelphia J oint B oard, A malgamated
C lothing W orkers of A merica (CIO). I ndustry H ealth C enter P lan . Supple
mental A greement E ffective A ugust 15,1947
Employer and Union hereby recognize the advantage to employees of a Medical
Health Center which shall be open to all employees of Employer, who are mem
bers in good standing of a local Union affiliated with the Philadelphia Joint
Board o f the Amalgamated Clothing Workers of America, and who comply with
provisions herein set forth, and such persons and groups as shall be approved for
the purpose by a two-thirds vote of all of the Trustees. Employer agrees to con
tribute to a Fund established under this Agreement and similar Agreements be
tween the Union and other employers to be known as the Men’s Apparel Industry
Health Center Fund (hereinafter referred to as “ Industry Health Fund” ) for
the purpose of maintaining the Men’s Apparel Industry Health Center. The
Men’s Apparel Industry Health Center shall be organized, maintained and ad
ministered as follow s:
A. The Men’s Apparel Industry Health Center and Industry Health Fund shall
be received, held and administered by a Committee of Trustees consisting of ten
(10) representatives of Union and ten (10) representatives o f the manufacturers.
The Committee may make all necessary and appropriate rules and regulations
for its government, not inconsistent with the provisions o f this Agreement, and
shall operate and maintain the Health Center. The ten (10) members of the
Board o f Trustees, on behalf o f Union (herein called Union Trustees) shall be
designated by the Philadelphia Joint Board and the ten (10) representatives of
manufacturers (herein called Industry Trustees) shall be designated by the
President of the Philadelphia Clothing Manufacturers Association. All de
cisions and resolutions of the Board o f Trustees shall become effective and valid
only upon the unanimous vote o f both classes of Trustees. Each class o f Trustees
shall cast its vote upon the determination of a two-thirds majority in number
o f such class. It is the intention of this Agreement that both classes o f Trustees
shall be required to act jointly and in the event that they cannot agree upon any
matter, then the matter shall be referred to the Impartial Arbitrator o f the men’s
clothing industry of the City o f Philadelphia, and his decision shall be final and
binding upon the parties hereto. The position of Chairman of the Committee of
Trustees shall alternate each year between an Industry Representative and a
Union Representative.
B. Commencing with the first pay-roll week following the vacation period of
July 1946, Employer shall pay into the Industry Health Fund three-fourths of
one per cent (3/4 of 1% ) of the gross earnings of all of Union employees who
are members of the Philadelphia Joint Board. These earnings will include the
cost of living bonus, overtime, if any, as well as holidays with pay, but will not
include any vacation payments.
O. By the provisions of preceding paragraph 1, Section 9 ( f ) , the Employer
has agreed to pay 2.5% of the contract price of garments manufactured for him
by contractors, of which amount 0.6% shall be paid to the Industry Health Fund.
211
COLLECTIVE BARGAINING PROVISIONS
212
This payment shall commence with the first pay-roll week following the vacation
period of July 1946. The payments provided for in preceding paragraph B
and in this paragraph shall only be based upon shops wherein the employees
are members of local Unions affiliated with the Philadelphia Joint Board o f
the Amalgamated Clothing Workers of America.
D. Employer agrees that the funds received by the Trustees o f the Health
Center shall be utilized first, to the extent of Three Hundred Fifty Thousand
Dollars ($350,000.00) as provided in paragraph G -II hereof and the balance shall
be utilized for the maintenance and operation o f the Health Center and ex
pended under the direction of the aforementioned Health Center Fund Com
mittee of Trustees or their successors.
E. The Committee of Trustees, in its discretion, shall have the right to
establish a non-profit corporation for the purpose of holding title to the property
of, and to manage, the Health Center, and may turn over to said corporation,
subject, however, to the provisions of this Agreement, the funds and assets which
may have come into their possession.
F. Union agrees in accordance with its By-Laws and Constitution to levy an
assessment in the sum of Twenty Dollars ($20.00) on each of its members who
are employed by Employer and upon those members who may hereafter belong
to the Union, which shall be utilized for the purpose of purchasing the said
buildings, real estate, and equipment, etc. Union shall pay the said special
assessments into a Building Fund established by the Committee of Trustees to
a maximum of Three Hundred Fifty Thousand Dollars ($350,000.00) when an
equal amount is likewise paid into said Building Fund from the Industry Health
Fund. The moneys in said Building Fund shall be deposited in a bank selected
by the Trustees and shall be withdrawn only upon the signature of an Industry
Trustee and a Union Trustee and shall be used for the cost of construction or
purchase of the building, the land and the equipment therein contained, and
for the repayment of any obligation or mortgage occasioned by the construction
and equipment. Pending the purchase and completion of appropriate building
and equipment, Trustees are empowered to invest the funds upon deposit with
any banks in the United States of America, or purchase any Government Bonds,
or such other securities which shall be legal for trust funds in the Commonwealth
o f Pennsylvania. Interest on any mortgage or incumbrance shall be paid from
the Joint Fund. After the land, building and original equipment have been
fully paid for, the receipts from the Twenty Dollars ($20.00) assessment of
new members in excess of the amount of Three Hundred Fifty Thousand Dollars
($350,000.00) shall be paid by Union to the Trustees and may be utilized by the
Trustees for operating expenses similarly with the other payments received from
Employers, provided that Employer shall make the payment required under 2-B
hereof.
G. The Trustees, in addition to the powers herein set forth and not in limita
tion thereof, shall have the pow er:
I. To determine whether a suitable building shall be leased, purchased,
or constructed.
II. Shall join with Union to merge the funds available from the Twenty
Dollars ($20.00) assessment for the Building Fund to a maximum o f Three
Hundred Fifty Thousand Dollars ($350,000.00) with an equal amount from
the Industry Health Fund derived from the percentage payments called for
in paragraph 2-B, and after said merger of both funds then title to the
buildings, real estate, equipment, etc., purchased from joint funds shall
belong to the Board of Trustees or their successors or to a non-profit cor-
H EALTH, INSURANCE, AND PENSIONS
213
poration organized by said Trustees in accordance with the provisions of
this Agreement, subject, however to the terms and conditions o f this
Agreement.
III.
May determine what reserves shall be held in cash or legal invest
ments in order to effectuate the purpose o f this Agreement.
H. The Employer shall furnish to the Trustees, upon request, such informa
tion and reports as they may require in the performance o f their duties under
any of the Agreements. The Trustees, or any authorized agent or representative
o f the Trustees, shall have the right at all reasonable times during business
hours to enter upon the premises o f the Employer and to examine and copy such
of the books, records, papers and reports of the Employer as may be necessary
to permit the Trustees to determine whether the Employer is fully complying
with the provisions hereof.
I. No Employee shall have the option to receive instead o f the benefits provided
for by this Agreement any part o f the contribution o f the Employer. No Em
ployee shall have the right to assign any benefits to which he may be or become
entitled to under any of the Agreements or to receive a cash consideration in
lieu of such benefits either upon termination o f the trust herein created, or
through severance o f employment or otherwise.
J. This Supplemental Agreement and the Collective Bargaining Agreement
shall be construed as a single document, and all of the provisions of the Col
lective Bargaining Agreement relating to the administration and enforcement
thereof (including provisions for arbitration) shall apply to the administration
and enforcement of this Supplemental Agreement.
K. In the event that the Union receives written notice from one or more of
the Trustees, designated by the Trustees for that purpose, that the Employer has
failed to pay in full any sums due the Trustees, and that such failure has con
tinued for five (5) days, the Union may direct its members to discontinue work
in the plant of the Employer and to discontinue work upon clothing being
manufactured for the Employer by contractors until all sums due from the
Employer have been paid in full. The remedy provided for in this subparagraph
shall be in addition to all other remedies available to the Union and the Trustees
and may be exercised by the Union, anything in the Collective Bargaining Agree
ment to the contrary notwithstanding.
The Trustees, in their own names as Trustees, may institute or intervene in
any proceeding at law, in equity, or in bankruptcy for the purpose of effectuating
the collection o f any sums due to them from the Employer under the provisions
o f this Agreement.
L. In no event will the Employer be entitled to the return o f any part o f any
contribution made hereunder.
M. Neither the execution of this Agreement nor any provisions herein con
tained, or contained in any other agreement affecting same, shall be deemed to
release the Employer from any contribution or contributions provided for in any
prior Agreement or Agreements, and which have become due and payable.
N. The Trustees and their successors shall not be personally liable for any
matter in connection with the management and operation o f the said trust and
the trust shall indemnify and save harmless each and every trustee from any
claims, liabilities or costs of any nature in connection with the operation of said
trust.
No trustee shall be liable for any action taken or omitted by him in good faith,
nor for the acts or omissions o f any agent, employee, or attorney selected by the
875403°— 50----- 15
214
COLLECTIVE BARGAINING PROVISIONS
Trustees with reasonable care, nor for any act or omission o f any other Trustee.
O. The Trustees shall provide for an annual audit of the Trust Funds and shall
prepare a statement of the results of said audit, which shall be available for
inspection by persons having an interest under this Agreement at the principal
office of the Trustees, and also at the office o f the Philadelphia Joint Board,
Amalgamated Clothing Workers of America, and at the office of the Philadelphia
Clothing Manufacturers Association.
P. Upon the expiration of this Agreement, or any renewal thereof, if no pro
vision is mutually made for the continuance of the Health Center, then the
Board of Trustees shall have the discretion to determine whether they shall
operate the Center insofar as funds may be available or may be obtained from
any source or, in their sole discretion they may liquidate, sell, assign or transfer
the property, equipment or other assets belonging to the Health Center and
transfer said property and assets to any other institution, public or private, in
the City of Philadelphia which will utilize the said funds or property for the
purpose of carrying out, insofar as may be possible, the furnishing of clinical
medical care to the members of the Philadelphia Joint Board of the Amalgamated
Clothing Workers of America similar to the manner provided in this Agreement.
3.
The provisions of this Supplemental Agreement shall expire the 15th day
of May, 1952, similarly with the provisions of the Contract between the Phila
delphia Joint Board, Amalgamated Clothing Workers o f America, and Employer,
dated May 15th, 1945, to which this shall be a Supplement and which said Agree
ment shall continue in full force and effect except as amended in writing by the
parties and this Supplemental Agreement.
S h am okin D ie and P rint W orks , I nc . (S h am okin , P a . ) , and T extile W orkers’ U nion
of A merica (CIO).
Group I nsurance P lan . A greement E ffective A ugust 20,
1948
Maintenance of Insurance Policies
(a) The Employer will provide and maintain at his sole cost during the full
term o f the collective bargaining agreement or renewal thereof the insurance
policies listed in the articles immediately following. These policies shall be
required to conform to the provisions enumerated in these articles as well as to
subsequent articles of this section.
(b) The term “ employees of the Employer,” as used in this section, means all
of the Employees o f the Employer who are covered and are entitled to the benefits
of the Agreement.
Life Insurance Policy for Employees Only
(a) The life insurance policy shall provide a death benefit o f not less than
five hundred dollars ($500) payable solely and entirely to the beneficiary desig
nated by each employee, with the right reserved to the employee to change the
beneficiary.
(b) The policy shall contain a provision whereby a worker upon leaving the
industry, may elect within not less than thirty-one (31) days, to carry his own
policy without a physical examination.
(c) The policy shall contain a provision whereby benefits under the policy
shall be payable for a period of thirty-one (31) days after the policy has been
terminated.
(d) There shall be provision for the continuation without premium payments
of benefits payable under the policy for each employee who has been deprived
of his employment because of total disability, such continuation to run for the
entire period of such total disability. This provision may be limited to those
employees who suffer such total disability before reaching the age of sixty (60)
years. With respect to such employees sixty (60) years of age and over, the
Employer shall continue to pay premiums on them for a period of at least one
(1) year from the last day worked, and the benefits under the policy shall be
payable by the Carrier Company for a period o f one (1) year after the termina
tion of the policy.
( e ) In substitution for the above, the policy may provide for a lump-sum
payment o f not less than the face amount of the policy to any totally disabled
employee.
Sickness and Accident Insurance for Employees Only
(a)
The policy shall provide benefits of twenty-two dollars ($22) per week
for a maximum period o f not less than twenty-six (26) weeks for any one period
of total disability due to non-occupational sickness or accident not compensable
under Workmen’s Compensation or similar acts.
215
216
COLLECTIVE BARGAINING PROVISIONS
(b) Hospitalization shall not be required as a prerequisite to the payment
of such benefits.
(c) Benefits shall begin not later than the first day of any disability due to
accident and the eighth day of any disability due to sickness.
( d) In maternity cases or any disability due to pregnancy or miscarriage the
maximum period for payment of benefits shall not be less than six (6) weeks for
any one pregnancy or miscarriage.
(e) There shall be no discrimination with respect to the benefits paid here
under by reason of earnings or age o f any employee, except that in the case of
employees of sixty (60) years of age and over benefit payments may be limited
to a total o f thirteen (13) weeks in any consecutive twelve (12) month period.
( / ) There shall be no waiting period imposed upon any insured employee
with respect to coverage under the policy for any disability whatsoever, includ
ing maternity.
Hospitalization Insurance for Employees
(a ) The policy shall provide benefit payments of eight dollars ($8) per day
for a maximum period of thirty-one (31) days for hospitalization required in
connection with any one period of disability due to non-occupational sickness or
accident not compensated under Workmen’s Compensation or similar acts.
(b) Eligibility under this policy shall be established after the employee has
been confined to a legally established hospital for a period o f four (4) hours,
or more.
(c) The policy shall also provide benefit payments o f eight dollars ($8) per
day for hospitalization in connection with maternity or any condition resulting
from pregnancy for a minimum o f ten (10) days and a maximum of not less than
fourteen (14) days.
(d) The policy shall also provide reimbursement to the employee, in connec
tion with any hospitalization covered by the policy, or other charges up to a
maximum of five times the daily benefit. This reimbursement shall be for
hospital charges other than room and board, including anaesthetics, X-rays, lab
oratory, operating and delivery room charges.
(e ) The policy shall provide for the payment of benefits after the termination
of the policy for a period of nine (9) months in the case of maternity, and for a
period of three (3) months in the case of hospitalization in connection with total
and continuous disability sustained while the policy was still in effect.
( f ) There shall be no waiting period imposed upon any insured employee with
respect to coverage under the policy for any disability whatsoever, including
maternity.
Hospitalization Insurance for Dependents
{a) The policy shall provide reimbursement up to a maximum o f six dollars
($6) per day for thirty-one (31) days for the cost of hospitalization required
by the wife (but not husband) and unmarried children (between 3 months and
18 years) o f any employee in connection with any one period o f disability not
compensable under Workmen’s Compensation or similar acts.
(b) Eligibility under this policy shall be established after the dependent
has been confined to a legally established hospital for a period of four (4) hours,
or more.
(c) In connection with maternity or any condition resulting from pregnancy,
the policy shall provide a lump-sum payment for hospitalization to the depend
ent o f not less than ten (10) times the daily benefit, or sixty dollars ($60).
HEALTH, INSURANCE, AND PENSIONS
217
(d) The policy shall provide reimbursement to the dependent in connection
with any hospitalization, except for reason of maternity covered by the policy,
for other charges up to a maximum o f five (5) times the daily benefit. This
reimbursement shall be for hospital charges other than room and board, includ
ing anaesthetics, X-rays, laboratory, and operation room charges.
(e ) The policy shall provide fo r the payment of benefits after the termination
of the policy for a period o f nine (9) months in the case of pregnancy, and for
a period of three (3) months in the case o f hospitalization in connection with
total and continuous disability sustained while the policy was still in effect.
( / ) There shall be no waiting period imposed upon any insured dependent with
respect to coverage under the policy for any disability whatsoever, including
maternity.
(g) Under terms of this policy all adopted or all step and foster children
not legally adopted but entirely dependent upon the employed shall be considered
as the employee's children.
Surgical Aid for Employees Only
(a) The policy shall provide reimbursement for surgical expenses in accord
ance with a standard schedule up to a maximum of one hundred and fifty
dollars ($150) for all surgery required by the employee in connection with any
one disability not compensated under Workmen’s Compensation or similar
acts.
(&) The policy shall provide a method for determining consistently payments
for operations not listed on the schedule.
(c) The policy shall provide for the payment o f benefits after the termination
of the policy for a period of nine (9) months in the case of maternity and for
a period of three (3) months in the case of surgical expenses in connection with
total and continuous disability sustained while the policy was still in effect.
{d) There shall be no waiting period imposed upon an insured employee with
respect to coverage under the policy for any disability whatsoever, including
maternity.
(e) Hospitalization shall not be required as a condition for receiving benefits
under this policy.
General Provisions Relating to All Policies
(а) The policies shall contain no special limitations respecting payment of
benefits other than the follow ing:
i. Benefits payable under the hospitalization, sickness and accident, and sur
gical aid policies shall be limited to non-occupational disabilities not covered by a
Workmen’s Compensation Act or similar legislation.
ii. All persons eligible for benefit payments under the hospitalization, sick
ness and accident, and surgical aid policies shall be treated by a physician legally
licensed to practice medicine, and all hospitalization and surgical operations
covered shall be recommended and approved by such a physician.
(б ) All present employees shall participate in the benefits of the Insurance
program hereinbefore mentioned.
S tandard U ltramarine C ompany (H untington , W est V a .) and U nited G as, Coke and
C hemical W orkers of A merica (CIO), L ocal No. 180. R elief P lan . A greement
E ffective A ugust 20,1947
Sick Benefit Fund
The Standard Ultramarine Company and the
lieving that a broadening of the relief program
a Board for the administration o f their joint
the best of their ability, are to investigate and
equal basis.
Union, Local No. 180, CIO, be
to be in order have established
aid. These representatives, to
handle all cases on a just and
Name
The name of the organization shall be known as The Standard Ultramarine
Company Employees Relief Fund.
Purpose of Board
This Board is created for the purpose of (a) eliminating solicitation in the
plant by refusal o f the Union and the Company to sponsor any paper or collection
for relief; (b) preventing delay of payment after need arises by prompt action
of its members; (c ) receiving and acting upon all claims for relief after thorough
investigation; (d ) to relieve the Union of collecting assessments for relief with
the exception of the $1.00 Death Benefit for an employee.
Officers
The Board shall consist of eight members, four selected from and by the
Union and four representing the Management of the Company, and in the
event of a tie vote an impartial person shall be selected by the Board. Officers
of the Board shall be selected at a regular meeting and will consist of a Chair
man, Vice Chairman, Secretary, and a Treasurer. In order to perpetuate a
uniform policy, the Union members will serve for a term of three years.
Meetings
The meetings will be held in the assembly room of the First Aid building once a
month or as required to transact current business.
Salary
Each member of the Board shall receive a salary of One Dollar ($1.00) per
month.
Article VI
The Union has agreed to assess themselves fifty cents per month and deposit
the sum in a bank account separate from all others. The Company will deposit
a check of equal amount to the same account. All disbursements, expenses, and
salary of the Board members will be paid by check from this fund. The checks
as drawn will not be valid unless signed by two members o f the Board, one
218
HEALTH, INSURANCE, AND PENSIONS
219
representing the Union and one representing the Company. Alternates will be
named to sign in the absence of either party. An impartial audit of the books
will be made once each year.
Benefits
The benefits of this fund are intended to relieve extreme cases o f prolonged
illness, destruction of home by fire and such other disasters that may befall the
employee.
Death benefits for employees’ wives and children are as follow s:
Infant fully developed from birth to 6 months.________________ $85.00
From 6 months to 1 year_____________________________________ 50.00
From 1 year to 5 years_______________________________________ 70. 00
From 5 years to 10 years---------------------------------- !--------------------- 100.00
From 10 years to 18 years-------------------------------------------------------- 150.00
From 18 years to maximum, if physically disabled------------------ 150.00
Wife or husband o f an employee----------------------------------------------- 200.00
To be covered by this section, the deceased must be totally dependent on the
employee.
On the death o f a member, the Union agrees to $1.00 assessment per member.
The Company will, however, in a case where the individual has not been em
ployed long enough to be eligible for either the insurance or pension, give the
sum of One Hundred Dollars ($100.00) to be added to the Union assessment for
death.
Benefits will be paid on the death o f an infant up to ten days o f age, if the
parent has been an employee o f the Company for nine months. All other de
pendents are covered by the death benefit when the employee has contributed to
the fund for three months.
Except as elsewhere provided, the fund will at no time pay more than One
Hundred Dollars ($100.00) for any emergency other than sickness of a member.
The amount of Emergency Relief is left to the judgment of the Board.
Aged parents, if totally dependent on an employee, will be considered by the
Emergency Board and their decision will govern the amount to be allowed the
employee.
Relief payments for sickness will be Forty Dollars ($40.00) per month for
a maximum of nine months.
The responsibility of this relief fund terminates when the employee’s name is
removed from the pay roll.
Limit o f Funds
Should the combined surplus in the treasury of this fund reach Four Thousand
Dollars ($4,000.00), the Company and the Union are to be notified in writing
and no more deposits made to its account unless written permission is given by
both parties.
Continuance
The relief plan covered by this agreement is in full effect for the duration of
this contract. It may be terminated by either party after expiration o f this
contract, in which event the money held by the treasurer will be divided into two
equal parts and returned after withholding enough to cover any commitments
already made by the board.
220
COLLECTIVE BARGAINING PROVISIONS
In the event of strike or work stoppage for any cause, the relief payments will
be continued if the Union pays its regular per capita share.
Contagious Disease
The Company agrees in the case o f active tuberculosis, on the recommendation
of the Company Doctor, to pay One Dollar ($1.00) per day for a maximum of
two years for all time spent in a recognized sanatorium. This is to be in addi
tion to any relief given by the fund.
Blood Donor
The fund will, upon proper notification, pay any blood donor the sum o f Ten
Dollars ($10.00) for each transfusion, to a maximum o f three, if the recipient
or a member of his family is a participant under this plan.
S hip S caling C ontractors A ssociation (S an F rancisco, Calif .) and I nternational
L ongshoremen and W arehousemen’ s U nion (CIO), L ocal No. 2. I ndustry M edi
cal-S ervice P lan . A greement E ffective September 1,1949
It is agreed that a medical service plan covering employees within the scope
o f this agreement shall be maintained. The individual employers coming under
this agreement shall, individually and separately, contribute into the medical
service fund established for this purpose one cent (1^) per man hour worked,
according to actual hours worked for them individually by scalers who are bona
fide members of the union, hired through the hiring hall, and covered by the
agreement.
(i) The Union will bank the fund, and will not co-mingle these funds with
any other funds, and will account yearly or on request to the Association
the disbursements from said fund in detail, showing the sums withdrawn.
a. The cost of above accounting shall be payable from the fund, providing
said cost does not exceed seventy-five dollars ($75.00).
b. The Union will furnish a monthly list o f the recipients o f benefits,
identified by names and plug numbers.
(ii) The Union will not allow to be paid out of said fund more than two
dollars and sixty cents ($2.60) per month for health plan dues in favor o f
any one (1) worker, nor allow the payment of more than one (1) registration
per year in favor of any one (1) worker, nor allow the payment of more than
two dollars ($2.00) per registration fee out of said fund.
a. In the event of any change in monthly dues or registration, the
preceding clause may be amended.
b, Signatures of representatives o f the Employers and the Union shall
be required on all checks drawn on the Hospitalization Fund Account.
(iii) The Union will not permit the payment out o f this fund in favor of
any person unless he is a regular working member in the industry, working
a minimum of eighty-seven (87) hours per month for the members of the
Association, as qualified below :
a. Any member working less than eighty-seven (87) hours per month
shall have the privilege of paying the difference required to make up his
regular monthly dues.
b. The above clause shall not apply to sick members o f the Union who
are unable to work and who were members o f the Health Plan at the
time they became ill, and are qualified and receiving benefits under the
Plan.
(iv) The Union shall pay from the fund one dollar ($1.00) for each visit
made by its Union Plan members to the Permanente doctors and billed
directly to the fund.
(v ) The Union gains no right, title or interest in said fund, and said
fund shall be for the sole purpose of maintaining “The Permanente Health
221
COLLECTIVE BARGAINING PROVISIONS
222
Plan” in favor o f its qualified workers. The Union assumes the respon
sibility of accounting for the fund, and will not use, nor cause to be used
by any of its agents or representatives, any o f these funds for any other
purpose than as above described.
(vi) I f this plan should be abandoned or canceled, the remainder o f said
fund shall be paid over to the Association members with full accounting.
(vii) The Association assumes no responsibility for the collection o f the
individual health contributions to the health plan.
Index
HEALTH, WELFARE, AND INSURANCE PLAN
Page
Relations of benefit plan to the agreement______________________________
4
Clause
(1) Employer to maintain plan for term of agreement and any
extension or renewal_______________________________________
(2) Benefit plan made part of agreement, subject to existing
limitations_________________________________________________
(3 ) Employer to continue existing plan, part contributory, part
noncontributory____________________________________________
(4) Employer to continue noncontributory plan for term of agree
ment______________________________________________________
(5) Plan continued subject to previously existing rules. Employer
modifications allowed, subject to negotiations if reduction
in benefits involved________________________________________
(6) Employer pledge to continue plan for duration of agreement
not binding thereafter______________________________________
(7) Plan remains in effect until termination of agreement or until
terminated in writing by union and association______________
(8) Plan and agreement to rim concurrently unless underwriter
changes terms______________________________________________
(9) Benefit fund to survive expiration of agreement_______________
(10) Plan to continue for 6 months after expiration of agreement___
(11) Application of employer’s existing benefit plans not affected
by contract------------------------------------------------------------------------(12) Association agreement: Existing plans may be continued with
cost credited to maximum employer contribution specified__
(13) Existing plan continued and broadened to include retirement
benefits____________________________________________________
(14) No reduction or withdrawal of benefits during life of agreement. _
(15) Employer may change benefit plan but not reduce benefits____
(16) Employer contributes to union fund; union to maintain program
for duration of agreement__________________________________
(17) Prior discussion with union before major changes made in plan. _
(18) No change reducing benefits without union consent. Arbitra
tion in case of dispute limited to question of bad faith or
discrimination______________________________________________
(19) No modification or cancellation of existing plan except by
mutual agreement_____________— j ------------------------------------(20) Continuance of plans vested exclusively in company’s board
of directors-----------(21) Continuation of insurance plan at employer’s discretion.
Changes discussed with union 60 days in advance-------- ---------
223
6
6
6
6
6
6
6
7
7
7
7
7
7
7
8
8
8
8
8
8
8
INDEX
224
Relations of benefit plan to the agreement—Continued
Clause
(22) Employer may discontinue plan upon due notice if its financial
condition changes__________________________________________
(23) Benefits to remain in force so long as they are maintained for
other employees, subject to employer’s right to modify or
cancel at any time. Union given 20 days’ advance notice and
opportunity to present views_____________________________
(24) Employer to give 30 days’ notice before changing plan________
(25) Employer may modify or withdraw benefits provided action
not discriminatory against union or members_______________
(26) Right to modify or discontinue benefits subject to (1) ban on
discriminatory change and (2) consultation with union--------(27) Listed benefits subject to economic conditions and company
policy_____________________________________________________
(28) Union recognition of noncontractual nature of existing
benefits not to prejudice its right to bargain collectively on
future benefit plans________________________________________
(29) Employer to make study to liberalize sickness and accident
benefits. Union informed of changes before employees_____
(30) Contributory plan: Union may request negotiations on insurance
on 60 days’ notice, not more than once during contract y e a r..
(31) Joint study to improve benefit provisions and administration
of plan____________________________________________________
(32) Employer contributions to union fund. Changes in policy,
benefits, or additional insurance to be jointly determined___
(33) Company to furnish union copies of policies and revisions_____
(34) Booklet with details of insurance program distributed to em
ployees____________________________________________________
(35) Details of insurance benefits included in policy________________
(36) Insurance company to issue certificate to each covered em
ployee_____________________________________________________
(37) Individual insurance certificate must bear statement that bene
fits thereunder are according to the collective bargaining
agreement--------------------------------------------------------------------------Negotiation of plan:
(38) Company to negotiate insurance plan with union when plan
is complete_________________________
(39) Reopening clause permits negotiation of insurance program.
(40) Joint union-management study of insurance plan within 30
days after agreement signed----------------------------------------(41) Negotiation on benefit plan under wage reopening clause
not subject to arbitration or strike_____________________
(42) Company to maintain own plan until replaced by participa
tion in union industry fund. Dispute over participation
arbitrable____ _________________________________________
(43) Contributory plan: Type and amount of benefits determined
by joint committee. Disputes to three-man committee,
including insurance broker_____________________________
(44) Contributory medical aid plan— Details submitted to ar
bitration if no agreement reached between parties______
Page
9
9
9
9
9
10
10
10
10
10
11
11
11
11
11
12
12
12
12
12
12
12
13
INDEX
225
Relations o f benefit plan to the agreement—Continued
Effective date of plan:
Clause
(45) Program initiated as soon as parties agree on coverage and
costs__________________________________________________
(46) Noncontributory plan to be established; benefits to be
jointly determined_____________________________________
(47) Contributory plan: Employer to provide insurance plan
with specified types of benefitswithin 6 months________
(48) Plan to become effective upon participation of 75 percent
of “ plan” employees----------------------------------------------------(49) Plan to become effective when 75 percent of eligible em
ployees have applied; effective date for dependents’
coverage is separately determined___________
Type and amount of benefits-----------------------------------------------------------------Specimen benefit plans________________ ___________________________
(50) Noncontributory combination benefit plan: Life insurance
with double indemnity; permanent disability benefits;
hospitalization, surgical expenses and weekly cash sick
ness and accident benefits, all including maternity; med
ical expense benefits, excluding maternity. Weekly cash
benefits geared to weekly earnings. Illness and hospital
ization benefits shorter in duration for maternity than
for other causes_______________________________________
(51) Noncontributory combination insurance plan; minimum
details specified________________________________________
(52) Combination plan: Listing of benefits in priority order
based on amount available to provide some or all benefits.
(53) Noncontributory sick benefit fund: Benefit payments vary
with status of fund__________________
(54) Contributory death benefit plan covering employee, spouse,
children_______________________________________________
(55) Employer financed health center. Employer may cover
employees outside the bargaining unit__________________
(56) Weekly cash benefit, surgical, medical, and dental care
while assigned outside United States, with transportation
back to port of embarkation if hospitalization becomes
necessary______________________________________________
(57) Employer to pay specified sum to mutual benefit associa
tion and pay administrative expenses; provides medicines
free or at less-than-cost price up to $10,000 per year____
(58) Industry benefit fund based on employer contributions,
used to purchase insurance. Individual unions to deter
mine type and extent of benefits_______________________
Life insurance and accidental death or dismemberment benefits_____
(59) Life insurance, uniform amount__________________________
(60) Life insurance— Specified amount; no limit on additional
amounts purchased at employee’s option with specified
employee contributions________________________________
(61) Noncontributory life insurance— Specified amount; addi
tional amounts optional if employee contributes. Maxi
mum coverage equal to previous year’s earnings. Em
ployee must reimburse employer for premiums paid in
his behalf during disability_______________ _____________
Page
13
13
13
13
13
14
14
14
15
16
16
17
17
18
18
19
20
21
21
21
INDEX
226
Type and amount o f benefits—Continued
Life insurance and accidental death or dismemberment benefits—Con.
Clause
(62) Amount of life insurance geared to length of service, up to
specified maximum____________________________________
(63) Noncontributory: Life insurance varies with length of
service. Amount of insurance for which eligible differs
with rehire after lay-off as against after quit or discharge. .
(64) Life insurance equal to 1 year’s earnings, minimum and
maximum amounts specified, plus funeralallowance_____
(65) Employer provides insurance equal to amount employee
purchases from union.Dividends paid to employee____
(66) Contributory: Amount of life insurance varying by wage
bracket-----------------------------------------------------------------------(67) Contributory plan: Employees may maintain insurance at
level of highest earnings in event earnings drop-------------(68) Life insurance, uniform amount; double indemnity________
(69) Life insurance and accidental death and dismemberment;
uniform amount_______________________________________
(70) Life insurance and nonoccupational accidental death or
dismemberment; uniform amount---------------------------------(71) Life insurance, with double indemnity, uniform amount; and
dismemberment benefits-----------------------------------------------(72) Life insurance benefit half the amount paid for accidental
death or total dismemberment due to nonoccupational
accident_______________________________________________
(73) Life insurance benefit twice the amount paid for accidental
death or total dismemberment due to nonoccupational
accident_______________________________________________
(74) Life insurance paid in installments to employee who suffers
permanent total disability before age 60________________
Weekly sickness and accident benefits---------------------------------------------(75) Uniform weekly benefit; no reference in contract to waiting
period or duration of benefits__________________________
(76) Uniform weekly benefit for 13 weeks; 7-day waiting period
for accidents and sickness______________________________
(77) Uniform weekly benefit for 13 weeks; waiting period differs
between sickness and accident________________
(78) Contributory: Weekly benefits begin with the first day of
accident and eighth day of illness. If illness lasts for
four or more consecutive weeks, payments are retroactive
to the first day. Maximum annual duration 12 weeks. _
(79) Noncontributory: Waiting period for sickness, none for
accident_______________________________________________
(80) Uniform weekly benefits for maximum of 26 weeks per
disability______________________________________________
(81) No differentials in benefit amounts because of earnings or
age; 13 weeks’ maximum annually for disability after age
60___________________________________
Page
21
22
22
22
22
22
23
23
23
23
23
23
24
24
25
25
25
25
25
25
25
INDEX
227
Type and amount of benefits—Continued
Weekly sickness and accident benefits— Continued
Clause
(82) Noncontributory: Weekly benefit varying by wage bracket.
(83) Weekly benefits varying by wage bracket; number of dis
ability periods compensated unlimited, provided 2 weeks
worked between periods of disability___________________
(84) Maximum weekly compensation equal to two-thirds of
basic weekly salary or $60, whichever higher, for 13
weeks. Physician’s certification of disability required__
(85) Benefits paid for 52 weeks based on 60 percent of average
pay; maximum weekly benefit, $40-------------------------------(86) Monthly accident benefit for 5 years--------------------------------(87) Benefit amount varies by sex-------------------------------------------(88) Relief fund for sickness and accident not covered by work
men’s compensation payments vary with amount in fund.
(89) Employer supplements hospital and health insurance pay
ments for nonoccupational injury by lump-sum payment
for each period of disability____________________________
(90) Employer compensates for waiting period not compensable
under State workmen’s compensation law______________
(91) Noncompensable work-connected accident: Benefits paid
for first 5 days. Compensable accidents: Workmen’s
compensation supplemented up to full pay for 90 days. _
Hospitalization____________________________________________________
Hospitalization service:
(92) Hospitalization benefits under Blue Cross plan. Sea
sonal and probationaryemployees excluded_________
(93) Blue Cross type plan: Dependents covered___________
(94) Blue Cross type plan: Dependents covered except
working spouse where no children in family________
(95) Blue Cross type plan: Family coverage optional with
employee at his c o s t._____________________________
Reimbursement for hospital expense:
(96) Flat amount; duration not specified__________________
(97) Flat amount; maximum duration 31 days per dis
ability, minimum 18 hours_________________________
(98) Hospitalization benefit amount varies by wage bracket.
(99) Hospitalization and surgical benefits for dependents; no
difference in benefit amounts between employees
and dependents___________________________________
(100) Hospitalization and surgical benefits for dependents;
dependents receive smaller surgical benefit than
employees but same hospitalization benefits________
(101) Amount and duration of hospitalization benefits differ
ent for employee, wife, dependent children. Ninetyone day maximum benefit for employee____________
(102) Same daily benefit but lesser amount paid to dependent
for other hospital charges. Duration of benefits not
specified__________________________________________
Page
26
26
26
27
27
27
27
27
28
28
28
29
29
29
30
30
30
30
30
30
31
31
INDEX
228
Type and amount of benefits—Continued
Hospitalization— Continued
Reimbursement for hospital expense— Continued
Clause
(103) Hospitalization benefits paid for emergency treatment
for nonoccupational accident even though hospital
makes no charge; 31 days’ maximum per confinement,
except for maternity-------------------------------------------(104) Cash benefits paid employee despite coverage under
Blue Cross type plan________
(105) Minimum compensable hospitalization 6 hours_______
Surgical and medical fees or service_________________________________
(106) Surgical benefits: Maximum amounts according to ‘ ‘sched
ule of operations.” Benefits paid in maternity cases to
employees insured on date plan becomes effective, but
9-month waiting period specified for newentrants_______
(107) Surgical benefit, maximum differs for employee and de
pendent_______________________________________________
(108) Medical expense benefit: Number of visits per week and
per disability limited; certain types of treatment ex
cluded________________________________________________
(109) Medical expense benefit: 50 visits maximum; no weekly limit
on visits; no specific exclusion Of types of service________
(110) Noncontributory medical plan: Medical treatments, medi
cines and doctor’s fees__________________________________
(111) Surgical benefits not payable for operation performed in a
government hospital or operation for which surgeon makes
no charge______________________________________________
(112) Surgical benefits: Patient receives scheduled benefit amount
even if it exceeds doctor’s charge_______________________
Maternity benefits-------------------------------------------------------------------------(113) Maternity benefits available to employees’wives__________
(114) Weekly cash sickness and accident benefits for employees
limited to 6 weeks in maternity cases; other benefits, 13
weeks--------------------------------------------------------------------------(115) Maximum indemnity for employee hospitalization less for
maternity than for other cases_________________________
(116) Noncontributory: Maternity cases receive hospitalization
benefits for shorter period than for other illness and
surgical benefits according to schedule, but same special
hospital fees as for other illness_________________________
(117) Hospitalization of 31 days for either employee or dependent;
for employee’s maternity, maximum amount is 14 times
the daily benefit amount (plus miscellaneous expenses);
for dependent, 10 times the daily benefit (including mis
cellaneous expense)____________________________________
(118) Eligibility for coverage in maternity benefits: 9 months’
service for new employees; immediate coverage for present
employees. Limit on maternity sick benefits---------------(119) Twelve-months’ service prerequisite to participation in
maternity benefits_____________________________________
Page
31
32
32
32
32
33
33
33
33
34
34
34
35
35
35
35
35
36
36
INDEX
229
Type and amount of benefits—Continued
Maternity benefits— Continued
Page
Clause
(120) Nine-month waiting period for wives or future employee
participants; coverage extended for 9 months following
termination of insurance_______________________________
(121) Lump-sum payable instead of weekly sickness and hospital
benefits for pregnancy ending after, but within 9 months
of, date of separation__________________________________
(122) Service required for participation in plan longer for ma
ternity benefits than for other benefits__________________
Eligibility for participation_____________________________________________
Employees:
Compulsory versus optional participation:
(123) Contributory: Participation in plan is condition of
employment______ ________________________________
(124) Contributory plan: participation optional with em
ployee____________________________________________
(125) Contributory: Participation not to be made condition
of employment____________________________________
(126) Contributory plan: Employee must sign waiver if he
does not wish to be covered________________________
(127) Noncontributory:%No obligation to join insurance or
welfare associations_______________________________
Specific eligibility requirements— contributory plans:
(128) All employees eligible________________________________
(129) Permanent employees with 6 months’ service_________
(130) Employee covered for any month in which he works
40 hours__________________________________________
(131) Insurance automatically reinstated on thirty-first day
following reemployment of employee rehired within
180 days of termination or lay-off__________________
Specific eligibility requirements— noncontributory plans:
(132) Regular employees covered by the agreement_________
(133) All employees to whom contract applies______________
(134) All active employees with 90 days’ seniority; laid-off
employees excluded_______________________________
(135) Full-time employees: e-months’ service for life insur
ance benefits; 1 year’s service for other benefits_____
(136) Association agreement: eligibility requirements for
present, laid-off, and new employees_______________
(137) Present employees— Eligible to participate as of date
policy is issued; future employees— Eligible after
working 2 days per week for 13 consecutive weeks__
(138) Minimum work requirements for present and future em
ployees____________________________________________
(139) Thirty-day probationary period required of new em
ployees or nonunion members or employees quitting
their job __________________________________________
(140) Union membership in good standing required________
(141) Seasonal and probationary employees excluded_______
875403°— 5<
-16
36
37
37
37
38
38
38
39
39
39
39
39
39
39
40
40
40
40
40
41
41
41
41
INDEX
230
Eligibility for participation— Continued
Employees— Continued
Specific eligibility requirements— noncontributory plans— Con.
Clause
(142) Immediate maternity coverage for present female em
ployees; dependent wives and future insured em
ployees must wait 9 months_______________________
(143) Employees otherwise eligible exempted from medical
examination_____________________________ _*________
(144) Union to obtain insurance for workers unable to qualify,
provided cost does not exceed 5 percent of usual
insurance cost_____________________________________
(145) Union has sole right to make rules and regulations for
coverage eligibility________________________________
Dependents________________________________________________________
Employees’ and dependents’ benefits provided at employer’s
expense:
(146) Hospital and surgical benefits to defined dependents at
employer’s expense________________________________
(147) Dependents automatically covered for hospitalization
and surgical benefits, subject to limitations of Blue
Cross contracts____________________________________
(148) Dependents automatically covered at employer’s ex
pense_____________________________________________
(149) No medical examination for dependents’ hospitaliza
tion coverage if enrolled within 31 days after de
pendents become eligible for coverage_____________
(150) Family of married man covered; “ family” not defined-.Employees’ benefits financed solely by employer; employee con
tributes for his dependents:
(151) Employee pays cost of dependents’ hospitalization
benefits; employer pays cost of employee benefits___
(152) Blue Cross coverage for dependents at employee’s option
and cost___________________________________________
(153) Employee is covered automatically (and without
charge), but dependents only by employee’s op tion ._
(154) Dependents covered provided 75 percent of employees
with dependents elect to participate and pay specified
amount___________________________________________
Employees’ benefits jointly financed; dependents’ benefits financed
solely by employer:
(155) Contributory: dependents covered by hospitalization
at employer’s expense_____________________________
Both employees’ and dependents’ benefits jointly financed:
(156) Employer contributes smaller proportion of cost for
family coverage than for employee coverage________
(157) Employees must cover all dependents or none; husband
of employee excluded in defining dependents_______
(158) Employee option of including benefits but may not
cover dependents without participating himself____
(159) Employee with dependents must subscribe for depend
ents’ benefits if he subscribes himself______________
Page
41
42
42
42
42
43
43
43
43
43
44
44
44
44
44
45
45
45
45
INDEX
231
Eligibility for participation—Continued
Dependents— Continued
Both employees’ and dependents’ benefits jointly financed— Con.
Clause
(160) Dependents employed by company or living outside
Canada and United States excluded from coverage. _
(161) Dependents include spouse and unmarried children
living with employee except if disabled and confined
at time of application_____________________________
(162) l'‘ Dependent children” defined to include stepchildren
and foster children regardless ofadoption__________
(163) Dependents include totally disabled husband of em
ployee____________________________________________
(164) Employee’s husband excluded from hospital plan_____
(165) Wife and/or children eligible under the plan as employ
ees are excludedfrom dependents’ benefits__________
(166) Dependents excluded because of disability at time of
election___________________________________________
(167) Amount of employee contributions geared to earnings,
and by number of dependents if dependents covered.
Company pays balance of cost_____________________
Financing the plan_____________________________________________________
Noncontributory plans_____________________________________________
Based on percent of pay roll:
(168) Five and one-half percent of total weekly pay roll____
(169) Percent of “ gross wages earned” by employee members
of union__________________________________________
(170) Percent of gross earnings of union employees. Gross
earnings include cost of living bonus, overtime, holi
day pay, but not vacation pay____________________
(171) Percent of total covered weekly pay roll, including over
time______________________________________________
(172) Percent of weekly pay roll,excludingovertime_______
(173) Percent of pay roll, excluding vacation pay, vacation
bonus, and servicemen’s bonus_____________________
(174) Percent of weekly wages (before deductions for taxes)
of inside workers and employees of his contractors. _
(175) Cost of living adjustments excluded in determining
employer contributions____________________________
(176) Employer contributes percent of gross pay roll of work
ers employed by exclusive contractors in city and
percent of “ bill” of contractors outside city________
(177) Two percent of total labor cost of products manufac
tured by employer or for his account. “ Labor cost”
defined. Payments made quarterly to union fu n d ..
(178) If net cost after dividends is less than 2 percent of pay
roll, difference used to purchase additional benefits. _
(179) Union may temporarily reduce or waive percentage of
pay roll required of employer if fund shows surplus
exceeding reasonable needs________________________
Page
45
45
46
46
46
46
46
46
47
47
48
48
48
48
49
49
49
49
49
50
50
50
232
INDEX
Financing the plan------ Continued
Noncontributory plans— Continued
Flat amount:
Clause
(180) Flat amount per hour for each hour worked by em
ployeescovered by agreement_____________________
(181) Flat weeklyamount per employee____________________
(182) Specified monthly amount for union members in
“ regular employ,” irrespective of days worked per
week______________________________________________
(183) Cost limited to over-all cost of 2 cents per man-hour or
specified amount per month per man, whichever is
greater____________________________________________
(184) Fixed monthly amount per “ active working employee,”
including employees on sick leave__________________
(185) Employer to contribute flat annual sum to benefit
association________________________________________
Other arrangements:
(186) Royalty on production______________________________
(187) Employer to pay entire premium for specified types
and amounts of benefits___________________________
(188) Employer pays full cost of hospitalization if employees
pay full cost of medical-surgical benefits; otherwise,
employer pays 60 percent of hospitalization cost____
(189) Employee and dependents receive specified benefits
without charge; employee contributes for surgical
benefits, amount varying with number of dependents.
(190) Maximum annual employer contribution specified____
(191) Employer contributes different amounts for different
groups of workers_________________________________
(192) Employer to make maximum specified additional con
tribution on request of trustees of fund____________
(193) Company’s contribution increased to specified maxi
mum if hospitalization rates increase_______________
(194) Industry plan— employer contributions to fund waived
if he provides benefits equal to other employers con
tributing to fund___'_______________________________
(195) Employer’s contributions do not constitute wages____
(196) Industry fund. If proposed benefit plan proves im
practical wage-rate clause of contract may be re
opened____________________________________________
(197) Wage scale may be reduced if proposed benefit plan is
established________________________________________
(198) Union recognizes cost of plan to employer and accepts
plan in lieu of additional hourly wage adjustment__
Contributory plans________________________________________________
Costs shared equally:
(199)Amount of contribution not specified; benefits listed____
(200) Cost not to exceed specified amount to employees and
employer__________________________________________
(201) Equal contributions but employer assumes admin
istrative costs_____________________________________
Page
50
51
51
5*L
51
51
51
51
52
52
52
52
53
53
53
53
53
54
54
54
55
55
55
INDEX
233
Financing the plan—Continued
Contributory plans—Continued
Employer contribution greater than employees’ :
Clause
(202) Two-thirds by employer; one-third by employee______
(203) Two-thirds by employer; one-third payment by em
ployee graduated according to weeklyearnings_____
(204) Sixty-forty ratio, maximum monthly premium per
employee specified_________________________________
Fixed employee contribution; employer pays difference:
(205) Fixed employee contribution; employer pays remainder.
Fixed employer contribution; employee pays difference:
(206) Fixed employer contributions; union and participating
employees liable for annual deficit. Surplus and
dividends used for additional coverage and/or in
creased benefits___________________________________
(207) Employer pays 10 percent of gross premium_________
Insurance dividends and rate rebates___________________
Noncontributory plans:
(208) Noncontributory plan— Employer retains dividends or
refunds___________________________________________
(209) Noncontributory plan— Association contract— Divi
dends or refunds (less expenses incurred) “ ratably
divided” among member firms_____________________
(210) Noncontributory plan— Receipt of dividends no reason
for employer to increase expenditures or coverage__
(211) Noncontributory plan— Dividends or refunds used for
premium rate increases or trustees’ expenses. Sur
plus, if any, used for additional benefits____________
Contributory plans:
(212) Contributory plan— Employer selects insurer and retains
dividends______________________________________________
(213) Contributory plan— Dividends held in trust for 1 year; used
to pay full premiums for disabled employees during
incapacity from sickness and accident__________________
(214) Contributory plan— Dividends prorated between employer
and employees according to contribution_______________
(215) Contributory plan— Dividends administered by joint unionemployer committee___________________________________
(216) Contributory plan— Dividends used to reduce premiums__
Underwriting the plan and selecting the insurer:
(217) Insurance company designated by name__________________
(218) Employer to purchase insurance from one of five listed
companies; union may propose other insurance companies
with lower rates but employer’s decision final____________
(219) Employer purchases insurance from payments to fund for
which he is responsible. Employer to furnish union
with quarterly reports_________________________________
(220) Insurance company to be approved by board of trustees..
Page
55
55
55
56
56
56
56
57
57
57
57
57
58
58
58
58
59
59
59
60
INDEX
234
Financing the plan—Continued
Underwriting the plan and selecting the insurer— Continued
Clause
(221) Selection of carrier by union after joint study of bids;
plan financed and administered by company____________
(222) Change in carrier only by mutual consent------------------------(223) Employer may pay premiums to insurance company di
rectly or through association--------------------------------(224) Employer to pay benefits or purchase insurance---------------(225) Employer may self-insure________________________________
(226) Employer not to operate plan but to insure with reputable
insurance company------------------------------------------------------(227) No reference to specific insurance company----------------------(228) Insurance company selected must cover all employees,
either in single policy or separate policies for union
and nonunion employees_______________________________
Disposition of funds on termination of plan_________________________
(229) Distribution of surplus funds after dissolution as required by
law. Trustees not liable for unintentional errors or
omissions______________________________________________
(230) Fund divided between employer and union after withholding
enough to cover commitments_________________________
(231) Union to use fund for same general purpose for which it was
created________________________________________________
(232) Union to use fund to purchase whatever type, amount, and
period of insurance it will provide______________________
(233) Options open to trustees for disposition of health center on
termination of contract__________________
(234) Noncontributory sick benefit fund: benefits continued until
fund exhausted if plan terminated. If new plan nego
tiated, surplus applied to employees contribution______
(235) Dismissal pay benefits substituted as death benefit in event
of termination of insurance plan________________________
(236) If plan illegal or insurance unobtainable, equivalent of
present premiums added to hourly rates________________
Other financing arrangements:
(237) Company provides basic amount of life insurance; additional
amounts available at specified monthly premium, re
mainder paid by company_____________________________
(238) Employer provides surgical benefits; employer and em
ployee contribute jointly for life insurance, sickness and
accident benefits; and employee provides medical bene
fits______ ____________________________________________ ^
(239) Employer pays full hospitalization premium for single em
ployees, or for married employees who do not choose to
cover dependents; pays half the premium for married
employees with dependents____________________________
(240) Blue Shield benefits at employer’s expense to employees
subscribing to Blue Cross hospitalization plan__________
(241) Benefits without cost to employee with 3 or more years’ serv
ice, contributory for those with less service_____________
Page
60
60
60
60
60
60
60
61
61
# 61
61
61
61
62
62
62
62
62
63
63
63
63
INDEX
235
Financing the plan—Continued
Other financing arrangements— Continued
Clause
(242) Employer to provide insurance equivalent to that already
provided by union insurance plan______________________
(243) Contributory plan— Deductions made subsequently for
weeks in which no employee deduction made. Employee
contributions in advance required for leave exceeding 30
days__________________________________________________
Administration_________________________________________________________
Noncontributory individual company plans:
(244) Fund to conform with requirements of the Taft-Hartley
Act___________________________________________________
(245) Contract excludes employer from administration on grounds
that plan was established prior to January 1, 1946 (an
exemption provided by Taft-Hartley A ct)______________
(246) Parties to establish rules and regulations by mutual agree
ment__________________________________________________
(247) Employer to issue rules and regulations to carry out purpose
of plan________________________________________________
(248) Joint insurance committee to administer benefits_________
Contributory individual company plans:
(249) Employer administered: Joint conferences on plan at request
of either party_________________________________________
(250) Cost of operation and responsibility for administration
vested in company_____________________________________
(251) Joint union-employer administration of contributory plan.
Insurance carrier to be mutually satisfactory___________
(252) Managed by company relief association which includes
union officers on board of directors_____________________
Noncontributory association or industry plans:
(253) Union administers fund; neither employer nor employees
have right, title, or claimto fund_____________________
(254) Self-insured plan: Union pays benefits, operating and ad
ministrative expenses, directly from fund________________
(255) Union purchases policies from union fund to which em
ployers contribute_____________________________________
(256) Union adopts rules and administers over-all fund; joint
board determines types and amounts of health benefits. _
(257) Joint union-association committee to administer health
service_________________________________________
(258) Joint committee to establish and administer insurance fund.
(259) Trust fund administered jointly by employers and union
through trustees appointed by each___________________
(260) Policies issued in name of trustees designated by em
ployer and union. If employer joins association con
tracting with union, association trustees to represent
employer______________________________________________
(261) Fund administered by tripartite board— six union repre
sentatives, two employers, and impartial chairman_____
(262) Tripartite committee to establish and maintain plan_____
Page
64
64
64
66
66
66
67
67
67
67
67
67
68
68
68
69
69
69
69
69
70
70
INDEX
236
Administration— Continued
Noncontributory association or industry plans— Continued
Clause
Page
(263) Administered jointly by union and association with disputes
referred to impartial chairman under the agreement____
(264) Joint administration; disputes to neutral party---------------(265) Health and welfare fund administered in accordance with
terms of separate trust agreement--------------------------------(266) Trust agreement regulating welfare fund incorporated into
collective bargaining agreement------------------------------------(267) Association contract: Employer sends contributions to
associations for transmittal to union-----------------------------Benefit claim and payment procedure---------------------------------------------(268) Benefits paid directly from fund by joint committee______
(269) Union-management committee on claims_________________
(270) Claims paid through employer’s office. Reports on claims
furnished union by employer and insurance company. _
(271) Insurance carrier solely responsible for determining claims. _
(272) Industry/area plan— Claims procedure: (1) employee noti
fies union; (2) union notifies insurance company; (3)
insurance company mails proper forms; (4) forms sent
to insurance company. Twenty-day time limit on
filing claims___________________________________________
Recourse to grievance procedure and/or arbitration________________
(273) Grievances under plan handled outside regular grievance
procedure_____________________________________________
(274) Disputes over fund administration not subject to regular
grievance procedure but to arbitration directly. Ar
bitrator appointed by court if not selected within 20
days__________________________________________________
(275) Dispute over claims subject to arbitration on basis of
prevailing group insurance practicein the industry____
(276) Dispute over claims to be settled by representatives of
union, employer, and insurance carrier_________________
(277) No recourse by employee if benefit claim rejected________
(278) Union committee may make recommendations on dis
puted claims to insurance company____________________
(279) Issues pertaining to benefits subject to bargaining but not
to arbitration. Company president’sdecision final_____
(280) Joint committee to hear disputes but have no authority
to govern premiums or payments_______________________
Employer and union safeguards________________________________________
Employer safeguards______________________________________________
Protection against increased costs:
(281) Specified employer contribution to constitute maximum
for present and any future agreement______________
(282) No additional employer contributions to be required
or requested______________________________________
(283) Employer liable only for benefits obtainable by specified
contribution_______________________________________
70
71
71
71
71
72
72
72
72
73
73
73
74
74
74
74
74
74
74
75
75
75
75
76
76
INDEX
237
Employer and union safeguards—Continued
Employer safeguards— Continued
Protection against Increased costs—Continued
Clause
(284) Costs limited to over-all cost of 2 cents per man-hour. _
(285) Employer may change plan at any time to prevent
annual benefit payments from exceeding 1 percent
of annual pay roll________________________________
(286) Company may substitute death benefit for life insur
ance in event of substantial increase in premiums_
(287) Union agrees to absorb future increases in insurance
rates, but company will discuss changing under
writers at union's request__________________________
No responsibility for default by insurance carrier:
(288) Employer's responsibility discharged by procurement
of policy and payment of premium________________
(289) No obligation on employer's part if insurer selected by
union defaults on just claim_______________________
(290) Employer obligated to continue plan only as long as
deductions of contributions are allowed for income
tax purposes______________________________________
Other safeguards:
(291) Union to require nonassociation members to make con
tributions to fund_________________________________
(292) Other contracts signed by union in industry to stipulate
same contributions________________________________
Protection of the fund--------------------------------------(293) Fund to be used only for purposes stated in the agreement—
(294) Fund not to be used for purposes disallowed by applicable
law-------------- .--------------------------------------------------------------(295) Trustees limited to specified percentage of contributions for
administrative expense_________________________________
(296) Fund may not be used in connection with strike activity. _
(297) Employer has no right, title, interest, or claim to fund;
employee rights governed by rules and regulations______
(298) Neither association, employer-members, or union members
have right, title, or interest in fund____________________
(299) Employer's rights to fund limited to right to designate
representatives on administrative board________________
(300) No employee right to employer's contribution instead of
benefits, nor may he assign benefits or receive cost in lieu
of benefits upon termination of employment____________
(301) Employee may assign hospitalization benefits due him to a
hospital, but may not assign other benefits; nor may he
receive other compensation instead of benefits__________
(302) Employer not entitled to return of contribution to fund__
(303) Fund is property of one union even though members of
another union may participate in benefits______________
(304) Money in fund invested in government securities_________
Page
76
76
76
76
77
77
77
77
77
78
78
78
79
79
79
79
79
79
80
80
80
80
238
INDEX
Employer and union safeguards— Continued
Inspection of records and other enforcement measures__ _______ _____
Periodic reports, audits, and access to records:
Page
80
Clause
(305) Employees may examine master group policies in em
ployer’s office during office hours__________________
(306) Union review of policies and records. Union right to
reject policy not conforming to agreement-------------(307) Union may examine employer’s books; union right to
take appropriate action in event of noncompliance-..
(308) Employer advisory committee may inspect union
benefit records____________________________________
(309) Industry plan— noncontributory: Employer to supply
copy of pay roll to trustees (one union and one associ
ation representative)______________________________
(310) Employer’s failure to file reports or make payments
considered a breach of agreement; disputes over
amount due handled through grievance procedure-(311) Union to prepare report of operations prior to expira
tion of contract. Details of report specified______
(312) Trustees may request reports from employer and have
access to pertinent books and records______________
(313) Union to prepare financial reports at least once a year- _
(314) Trustees to submit certified quarterly financial report-(315) Copies of annual fund audit to union and employer;
available for inspection____________________________
(316) Employer to furnish union with specified information,
including agreements with insurance carrier________
(317) Contributory: Union to receive financial report on
operation of the plan______________________________
General enforcement provisions:
(318) Union may require bond or cash deposit as surety from
employer who defaults; employer liable for any bene
fits employee would have received if proper insurance
coverage had been maintained_____________________
(319) Trustees may fine delinquent employers for each day of
delinquency_______________________________________
(320) Trustees may take necessary action to enforce employer
contributions to employer-association trust fund___
(321) Agreement provisions relating to administration and
enforcement, including arbitration, applicable to
benefit plan_______________________________________
(322) Employee-benefit provisions may be enforced in same
manner as for wage clause_________________________
(323) Union to be sole complaining party__________________
(324) Union may call strike if employer defaults; trustees
may institute proceedings at law to collect sums due.
Employer right to contest demands, by arbitration
or otherwise_______________________________________
(325) Union may order work stoppage if employer fails to
procure or continue policy; local may take legal
action to collect benefits due members_____________
81
81
81
81
81
82
82
82
82
82
83
83
83
83
83
83
84
84
84
84
84
INDEX
239
Page
Adjustments to health or social security legislation______________________
85
Clause
(326) Automatic conformity to Federal legislation___________________
(327) Establishment of plan for disability benefits under State disability
insurance act_______________________________________________
(328) Employees to assign contributions required under State plan
to contract plan, as allowed by law ______________________________
(329) Sickness and accident benefit plan to be modified to conform
with State plan__________________________________________________
(330) Renegotiation in event of legislation; no loss of present benefits.
(331) Renegotiation on reduction or elimination of duplicate employer
payments in event of legislation, subject to arbitration______
(332) Duplicate benefits canceled and employer relieved of cost______
(333) Legal benefits to be supplemented to provide contractual
benefits. If law requires employee contributions, contrac
tual benefits reduced and employer savings used for life insur
ance benefits_______________________________________________
(334) Relation to State disability plans: Benefits equal difference
between agreement benefit and State benefit, plus $1,000
life insurance policy________________________________________
(335) Cash weekly benefits extended to conform with State law_____
(336) Establishment of sickness and accident benefit plan operative
only if approved as private plan under State temporary dis
ability benefits law_________________________________________
(337) Employee deductions under State disability law paid to union
fund to provide insurance required by law_____ _____________
(338) Employer assumes employees’ share of pay-roll tax required
under State disability benefits law__________________________
(339) Payments to employee under insurance or compensation laws
are deducted from benefits paid by plan____________________
(340) Validity and interpretation of plan subject to State law________
The individual worker’s equities under a benefit plan-----------------------------Temporary lay-off or leave of absence---------------------------------------------(341) Noncontributory: Company continues premium payments
for 13 weeks if on sick leave and for first month after
layoff_________________________________________________
(342) Noncontributory: Sickness insurance continued for 2
months, other insurance for 3 months after leave of
absence. Employer relieved of contribution if employee
completes 3-week probationary period in another plant
in the industry. Absence due to total disability not
considered leave or severance of employment___ — _____
(343) Noncontributory: Coverage extended to end of contract
year in case of sickness; terminates earlier if separated
for other reasons_______________________________________
(344) In case of absence for illness, hospitalization coverage is
extended not to exceed 1 year and life insurance coverage
until return to work___________________________________
(345) Noncontributory: Life insurance and hospital benefits
terminate after 3 months’ lay-off; other benefits immedi
ately. All benefits terminate after 5 months’ absence
due to sickness or accident. Advance notice by employer
of payment of premiums_______________________________
85
85
85
87
87
87
87
87
88
88
88
89
89
89
89
89
90
90
90
91
91
91
240
INDEX
The individual worker’s equities under a benefit plan—Continued
Temporary lay-off or leave of absence— Continued
Clause
Page
(346) Noncontributory: Coverage for maximum of 2 months
after lay-off_____________________________________
(347) Life insurance coverage extended for 60 days during leave
of absence; employee to make arrangements on insurance
paid for by him________________________________________
(348) Noncontributory: Coverage except for life insurance for 1
month during temporary lay-off or leave of absence____
(349) Extended coverage during temporary lay-off for 30 days
following end of month of lay-off; coverage continued
during seasonal lay-off provided recalled to work by
specified date__________________________________________
(350) Noncontributory: Coverage extended for 31 days during
leave of lay-off, but terminates immediately on date of
termination of employment. Termination of employ
ment defined______________________
(351) Noncontributory: Life insurance continued during total
disability for maximum of 12 months and provided death
occurs before age 65___________________________________
(352) Noncontributory: Employer not required to cover em
ployees on lay-off, on leave of absence, or prior to com
pletion of probationary period__________________________
(353) Contributory: No limit on extended coverage during illness,
provided insurer consents and employee pays his share
of cost________________________________________________
(354) Contributory: Group insurance continued for employees
on leave of absence for full-time union service, provided
employee pays his share of premium at least monthly in
advance_______________________________________________
(355) Contributory: Employee may maintain coverage (limited
to 31 days for accidental death and dismemberment and
accident and sickness) during leave or lay-off by paying
premiums______________________________________________
(356) Extended coverage under Blue Cross plan during maternity
leave of absence, provided employee pays premiums in
advance_____________
(357) Contributory: Employee covered during temporary lay-off
unless employed elsewhere_____________________________
(358) Employer to continue contributions for 6 months after
employee’s illness or injury, provided employee contri
butions made__________________________________________
(359) Contributory: Employer pays full premium for employee
and his dependents for first month of employment after
lay-off. ________________________
(360) Contributory: Consideration given to extending life insur
ance coverage during lay-off. Continuation also subject
to regular employee contributions______________________
(361) Military service leave: Coverage continued for 1 year and
40 days with entire premium paid by company_________
92
92
92
92
92
93
93
93
93
93
93
94
94
94
94
94
INDEX
241
The individual worker’s equities under a benefit plan— Continued
Temporary lay-off or leave of absence— Continued
Clause
(362) Military service leave: Company pays premium on national
service life insurance for same face value as under com
pany plan, up to maximum amount. Coverage under
company plan ceases___________________________________
(363) Military service leave: Company pays premiums on govern
ment insurance provided employee enrolled in company
plan 30 days prior to enlistment or draft_______________
(364) Insurance canceled 90 days after entry into military service;
reinstated without examination or waiting period on
return within 90 days after honorable discharge_________
Termination of employment or of union membership________________
(365) Contributory plan: All benefits convertible after termina
tion, subject to age, employment, and application
restrictions____________________________________________
(366) Noncontributory: Blue Cross convertible after termination.
(367) Life insurance extended for 31 days after termination of
employment; other benefits cease immediately_________
(368) Conversion to sum equal to or less than group life insurance
policy. Other insurance ceases on termination of employ
ment or at age 70, whichever is earlier____________ _____
(369) Insurance terminates when union membership or service
for covered employer terminates, with privilege of
converting life insurance_______________________________
(370) Insurance coverage terminates on date of separation if
employee quits without notice or is discharged for cause,
but is extended during lay-off or sickness, or if employee
quits after giving due notice-----------------------------------------(371) Conversion to individual life insurance policy (except term
insurance) allowed, without physical examination on
written application within 31 days after termination____
(372) Maternity benefits extended 9 months after termination__
(373) Extension of hospital and surgical benefits for em ployees-.
(374) Extension of hospital and surgical benefits for dependents—
Retirement for age or disability____________________________________
(375) Employer to maintain life insurance on retirement equal to
amount in force at time of retirement__________________
(376) Employer pays premiums on $500 of life insurance for
retired employee, who may convert remainder (if any) or
original amount at own cost___________________________
(377) Employer assumes cost of life insurance for employees
retiring for age or for total and permanent disability____
(378) Noncontributory: Life insurance extended at employer’s
expense for 1 year after employee’s retirement--------------(379) Noncontributory: Employer continues payment of life
insurance premiums during total disability commencing
before age 60__________________________________________
(380) Life insurance paid in installments in event of permanent
and total disability prior to age 60_____________________
Page
95
95
95
95
96
96
96
96
97
97
97
97
98
98
98
98
99
99
99
99
100
242
INDEX
The individual worker’s equities under a benefit plan—Continued
Retirement for age or disability— Continued
Page
Clause
(381) Noncontributory: Lump-sum payment of not less than face
value of policy or continuation of benefits without pre
mium payments in event of total disability-------------------(382) Employer to pay life insurance premium for retired em
ployee, provided acceptable to insurance carrier________
(383) Retired employee may retain hospital and surgical coverage
by continuing his contributions; medical and weekly
sickness and accident coverage ceases__________________
Other coverage provisions:
(384) Termination of surgical insurance if employee is transferred
to an ineligible class or if other insurance terminates____
(385) Coverage continued during strike, lock-out, or other sus
pension, provided eachparty continues contributions____
(386) Hospitalization coverage continues for 9 months after
termination of policy in case of maternity and 3 months in
case of total and continuous disability beginning while
policy was in effect--------------------------------------------(387) Insurance lapses at end of premium month in event of strike.
100
100
100
100
100
101
101
PENSION PLANS
Specimen benefit plans:
(1) Contributory insured annuity plan: Yearly annuity equals 50
percent of employee’s total contributions. Retirement at
normal age or earlier with reduced annuity; on separation
before eligible for annuity, choice between refund and deferred
annuity; iump-sum refund of employee contributions to sur
vivor if employee dies before retirement; on death of annui
tant, survivor receives lump-sum refund of unexpended
balance of contributions, or annuity if annuitant elected
reduced amount for himself. No credit for prior service to
employees not joining when eligible. Additional pension at
employer’s cost for service prior to effective date of plan for
eligible employees__________________________________________
(2) Noncontributory plan: Fifty dollars per month plus additional
amount geared* to service over 25 years. Full pension paid
after 25 years’ service for voluntary retirement at 65 for men,
55 for women, and when retired by company at age 68 for men,
and 58 for women. Reduced pension if retired at 70 after
15 years’ service or if permanently incapacitated.
Com
pensation payment after retirement deducted from amount of
pension____________________________________________________
(3 ) Noncontributory plan: Simple statement of basic provisions.
Vesting included. Limited pension payments to beneficiaries
if employee dies after age 55 while in company employ or
within 5 years after retirement. Employees eligible after
5 years’ service and age 30_______________ _________________
103
106
107
INDEX
243
Specimen benefit plans—Continued
Clause
(4) Establishment of noncontributory industry pension plan.
Employers contribute $1 per month to trust fund administered
jointly, with provision for umpire to resolve disputes. Trus
tees to determine “ nature, extent, and duration” of pensions.
No payments made until specified date_______________________
(5 ) Retirement allowance equal to 1 week's pay for each year of
continuous service. Retirement at age 65 or on disability, after
10 years' service. No credit for continued service after age 65_
(6 ) Contributory plan— Pension equal to $50 per month for members
since inception of plan; for others, monthly income based on
number of years of contributions. Employee option to sub
scribe for additional pension amounts_________________________
(7 ) Noncontributory— Age and death benefits based on 1 percent of
average yearly pay times number of years worked up to age
65. Optional retirement at age 60, compulsory at 65, subject
to maximum 5 years' extension___ _________________________
(8 ) Contributory plan— Employee contributes 2% percent of current
earnings; employer to bear remainder of cost, including prior
service. Pension approximately the sum of 1 percent of
average monthly earnings in each year of service, one-year
service eligibility requirement______________________________
(9) Percentage formula in computing pension amount varies with
service at retirement age. Deductions for social security
benefits and annuity payments under insured annuity plan__
Contractual obligations_________________________________________________
(10) Mutual understanding on pension plan made part of agreement - _
(11) Retirement plan approved by company stockholders made part of
agreement__________________________________________________
(12) Pension payments continued for duration of contract__________
(13) Employer will continue retirement insurance during life of con
tract_____________
(14) Noncontributory insured pension plan to be maintained during
life of agreement despite company right included in insurance
certificates to change or terminate plan for listed causes_____
(15) If insurance company cancels retirement annuity plans, employer
to try to obtain similar plans______________________________
(16) Employer to continue present plan as long as contributions
credited for income tax purposes____________________________
(17) Company to put into effect and administer pension plan, under
consideration, subject to Internal Revenue approval and partic
ipation by 75 percent of eligible employees__________________
(18) Company to offer signatory union more favorable pension bene
fits agreed to with other unions_____________________________
(19) No reduction in benefits or privileges without union consent___
(20) Advance discussion with union before changes put into effect—
(21) Noncontributory plan: Joint union-management study of prob
lems created if company obligates itself to maintain present re
tirement plan without change_______________________________
Page
107
108
109
110
111
112
112
113
113
113
113
113
114
114
114
114
115
115
115
244
INDEX
Contractual obligations— Continued
Clause
(22) Plan is not part of contract----------------------------------------------------(23) Employer reserves right to modify or discontinue plan__________
(24) Booklet outlining pension plan attached to but not part of agree
ment_______________________________________________________
(25) Union may request negotiations if formal plan not established
within 1 year. Present informal program to continue________
(26) Negotiations to be continued on pension plan-------------------------(27) Negotiations on setting up “ trusteed pension reserve fund” but
eligibility requirements, benefit amounts, and contributions to
be governed by existing plan________________________________
(28) Employer to consider establishment of contributory plan_______
(29) Company will discuss contributory plan proposed by union during
life of agreement___________________________________________
(30) Employer to consult with union on revised pension plan_______
Eligibility rules for membership in plan-------------------------------------------(31) All employees covered by agreement brought within plan______
(32) Contributory plan: Eligibility requirements: 3 years’ service and
minimum salary____________________________________________
(33) Excludes persons entering service “ over forty-five years of age” _ _
(34) Membership compulsory for eligible employees-------------------------(35) Participation compulsory for new employees; optional for present
employees__________________________________________________
(36) Contributory plan: Eligibility based on 2 years’ service; hiring
before age 55; union membership____________________________
(37) Contributory plan: 5 years’ service provided under age 69}i.
Participation optional, but must join plan when first eligible to
receive benefits. Normal retirement age varies between 65 and
70 according to age when first covered; may be deferred with
employer’s consent--------------------------------------------------------------(38) Optional participation by professional employees; compulsory by
nonprofessional staff________________________________________
Computation of creditable service____________________________________
(39) No break in continuous service for specified absences and no de
duction for time lost. Other absences in excess of 3 years de
ducted from total service___________________________________
(40) Leave of absence for union office credited toward service neces
sary for retirement benefits________________________________
(41) Employee guaranteed benefits on transfer to an associated com
pany with or without a plan________________________________
(42) Date of last employment with company or predecessor deter
mines continuous service______________
(43) No credit for service prior to merger unless previous employer
maintained a similar pension plan__________________________
(44) Employee credited with service for different employer prior to
“ control, acquisition by, or consolidation” with present em
ployer_____________________________________________________
(45) Pension funds merged if employer merges with another company
having a similar plan_______________________________________
Page
115
116
116
116
116
116
116
117
117
117
117
117
117
118
118
118
118
118
118
119
119
119
120
120
120
120
INDEX
245
Page
Qualification for benefits----------------------------------------------------------------------Retirement________________________________________________________
120
120
Clause
(46) Contributory: Pension at age 70 regardless of service; at 65
with 25 years’ service; after 25 years’ service after age 65_ _
(47) Noncontributory: Combined age and service qualifications
for retirement for age and for disability_________________
(48) Combined age, service, and disability requirements: Age 65,
25 years’ service; age 70, 15 years’ service; disability, 15
years’ service__________________________________________
(49) Noncontributory: Bus drivers may retire earlier than other
employees withoutreduction in pension_________________
(50) Noncontributory industry-wide plan: Age 65; 20 years
continuous employment in industry and 1 year’s employ
ment immediately prior to retirement with employer
contributing to retirement fund; 10 years’ union member
ship; application for old-age benefits approved by Social
Security_______________________________________________
(51) Lump-sum severance pay to employee retired without pen
sion under existing company practice___________________
Permanent disability___________________________________________________
(52) Noncontributory: Sixty dollars per month disability pension after
15 years’ service. Pension discontinued if pensioner earns, at
work or in business, $80 per month, or if he regains health.
No reference to origin of disability__________________________
(53) Contributory plan: Disability benefit increased $1 per month for
each year of service above qualifying period of 15 years; maxi
mum $50 per month_______________________________________
(54) Noncontributory: Identical amount payable for disability and
age-and-service retirement- _________________________________
(55) Contributory plan: Permanent total disability from any cause
after specified date. 15 years’ minimum service requirement.
Benefit amount is percentage of retirement annuity according
to service of 15, 20, or 30 years_____________________________
(56) Contributory plan: Permanent total disability after 20-year
service requirement. Fifty-dollar monthly benefit paid, same
as for normal retirement. Amount reduced by monthly State
compensation benefits. If employee paid lump-sum compen
sation settlement, benefit payments under plan begin only
when lump sum has been “ used” at rate of $50 per month____
(57) Non contributory plan: Distinction in disability pension amounts
and service requirements for work-connected and nonworkconnected disabilities_______________________________________
(58) Contributory plan: If eligible for both disability and retirement
benefits, retirement only is payable______________________
(59) Contributory plan: No duplication of retirement benefits, but
receipt of disability allowance no bar to retirement when no
longer eligible for former___________________________________
(60) Severance pay on separation for permanent disability--------------
875403°— 50------17
121
121
121
121
122
123
124
124
125
125
125
126
126
127
127
127
INDEX
246
Page
Death benefits__________________________________________________________
127
Clause
(61) Contributory plan: Lump-sum payment, to beneficiaries or es
tate, equal to employee’s total contributions, without interest.
If no beneficiary survives, employee’s contributions become a
part of the* fund____________________________________________
(62) Contributory plan: Beneficiary paid amount of employee’s con
tribution, without interest, less any disability retirement bene
fits paid___________________________________________________
(63) Contributory plan: No death benefits for death after retirement
if employee has received at least one monthly pension pay
ment_____________
(64) Contributory plan: Lump sum equal to joint contributions, plus
interest, or survivor annuity if lump sum is sufficient to provide
annuity of $120 per year_______________ ___________________
(66) Noncontributory plan: Lump sum and limited survivor monthly
annuity payments for either work-connected or nonworkconnected death. Death benefits paid for death before or after
retirement. No service requirements for work-connected
death. If no dependents and estate is insufficient, burial cost
paid for employee with at least 2 years’ service____________
Retirement age_________________________________________________________
(66) Employer reserves right to retire or retain in employment em
ployees reaching pensionable age___________________________
(67) Employer right to retire employees at age 65__________________
(68) Non contributory: Employer option to retire employees before
age 65, at reduced benefits_________________________________
(69) “ No Discrimination” clause no bar to company’s right to retire
employees at age 65________________________________________
(70) Contract no bar to retirement of employees aged 65___________
(71) Compulsory retirement at age 70; optional retirement at age 65
after 15 years’ service______________________________________
(72) Retirement age 65 for males, 60 for females___________________
(73) Employer right to retire at age 65, irrespective of participation
in pension plan_____________________________________________
(74) One year’s separation notice for employees of retirement age
ineligible for pension_______________________________________
(75) Compulsory retirement at age 65 voided if retirement plan
changed and benefits reduced______________________________
(76) Involuntary retirement at age 65 subject to grievance procedure(77) Company option to retain employee past retirement age, subject
to annual review. Such employees receive pension and other
benefits, in addition to earnings____________________________
(78) Continued employment after retirement age limited to 1 y e a r..
(79) Compulsory retirement (with approval of committee) after 30
years’ service regardless of age, or after 25 years’ service and
attainment of age 55 for men or 50 for women. Voluntary
retirement after 20 years’ service and attainment of age 60
for men or 55 for women___________________________________
(80) Employee may continue at work after age 65 if able to perform
his duties__________________________________________________
128
128
128
128
129
130
130
130
130
130
131
131
131
131
131
131
131
132
132
132
132
INDEX
247
Retirement age— Continued
Clause
Page
(81) Retirement schedule under new plan: Employees aged 65 or
over on date of establishment to be retired gradually. Retire
ment compulsory on attaining age 65 after fixed date_______
Employees' benefit rights on separation from service____________________
(82) Contributory plan: Lump-sum amount based on specified per
centages of employee's and employer's contributions, plus
interest, paid on separation__________________________________
(83) Contributory: On termination, employee receives his contribu
tions plus sum equal to his contributions since specified date,
up to 4 weeks' pay___________________________________________
(84) Contributory: Disability annuities paid are deducted from
lump sum on leaving employer's service; no interest paid____
(85) Contributory: Option of refund or deferred annuity based on
service; no reference to age___________________________________
(86) Noncontributory plan: No benefit on leaving employer's service
before normal retirement age_________________________________
(87) Union-sponsored, noncontributory plan: No benefit for members
leaving the industry or suspended by union_________________
(88) Contributory: Employee may withdraw contributions while he
remains in company's employ________________________________
(89) Contributory plan: Employee may not withdraw contributions
while still eligible to participate in plan. With company's
consent, employee transferred to unit covered by different
plan may transfer service credits and contributions_________
Amount of pension_____________________________________________________
Uniform amounts:
(90) Noncontributory plan: Uniform benefit, compulsory amount
of $60 per month_____________________________________
(91) Contributory plan: Pension amount equals $50 per month(92) Eighty dollars per month, less one-half social security
benefits__________________
(93) Noncontributory plan: One hundred dollars per month.
No deduction for other income, including social security
and workmen's compensation__________________________
(94) Amount approximately equal to social security benefits___
(95) Contributory plan: Normal monthly allowance of $50 is
reduced by $2 for each year of service less than 25. No
deduction for other income, including social security and
workmen's compensation benefits______________________
Graduated benefits:
(96) Noncontributory plan: Normal retirement annual pension
equals \Vz percent of average annual pay times length of
service. Employees retired earlier by company receive spec
ified percent of normal pension based on age at separation.
(97) Contributory plan: Specified monthly pension amount for
each full year of participation, based on salary class and
monthly contribution__________________________________
(98) Noncontributory: Benefit formula based on service,
average earnings, social security benefits.
Pension
amount equals 25 percent of average monthly earnings
up to $250 plus 1 percent of total average monthly earn
ings times years of service, less social security benefits. .
133
133
134
134
134
134
134
135
135
135
135
136
136
136
137
137
137
138
139
139
INDEX
248
Amount of pension—Continued
Graduated benefits— Continued
Page
Clause
(99) Noncontributory benefit formula: V/2 percent of first $50
of highest average monthly pay during any 10 consec
utive years plus 1 percent of additional earnings; mini
mum monthly amount $20; maximum, $75, subject to
increased pension at discretion of board of directors____
(100) Contributory plan: Annuity computed as sum of different
percentages of earnings under and over $3,000 per year.
Prior service benefit (separately computed) payable to
participants as of date plan was established. Quarterly
payments if monthly pension is less than $10; single cash
settlement if monthly pension less than $3.34---------------(101) Noncontributory plan: Annual pension equals 1 percent of
average annual pay for 10 years, times number of years of
service. Minimum $50 per month, except in disability
pension cases based on less than 20 years’ service and in
cases of pensions granted to “ part time” employees_____
(102) Minimum monthly pension $15; maximum $25, based on
service________________________________________________
(103) Trusted contributory plan to replace insured plan. Accrued
benefits under old plan coordinated with n§w plan______
Deductions of State or Federal benefits from pension----------------------(104) Noncontributory: Unemployment insurance or workmen’s
compensation deducted________________________________
(105) Noncontributory: Specified Federal or State benefits— Old
age, relief, disability, sickness— Deducted in proportion
to employer contributions thereto______________________
(106) Noncontributory: Company pension exclusive of social
security benefits_______________________________________
(107) One-half Federal old-age benefits deducted________________
(108) Noncontributory: One-half of Federal old-age benefits
deducted; if pensioned for disability, group insurance and
workmen’s compensation payments deducted___________
(109) Contributory plan: No deduction for social security benefitsConditions governing payment, continuation, or suspension of pension
payments:
(110) Pension is payable for life-----------------------------------------------(111) Payments suspended during regular employment with com
pany subsequent to retirement_________________________
(112) Noncontributory: Payments suspended during permanent
employment elsewhere after retirement. Payments are
terminated by reemployment in the coal industry, and on
subsequent retirement employee must again apply and
qualify for benefits_____________________________________
(113) Noncontributory: Employment elsewhere after retirement
no bar to receipt of pension____________________________
(114) Contributory: Annuity not payable until actual separation
from service; payments are suspended during return to
active service of employer______________________________
140
140
141
141
141
142
142
142
142
142
143
143
143
143
143
144
144
INDEX
249
Page
Financing the plan-------------------------------------------------------------------------------Noncontributory plans:
144
Clause
(115) Employer to pay entire cost____________________
(116) Fixed percentage of covered pay roll_____________________
Contributory plans:
(117) Employee contributes 2 percent of monthly earnings up to
$250 and 4 percent of any amount exceeding $250;
employer pays remainder of cost_______________________
(118) Employer-employee matching contributions towards pension
fund__________________________________________________
(119) Employee pays $5 per month; employer makes lump-sum
contribution of $10,000 and matches employee contri
bution. Employee who elects coverage after establish
ment of plan, though eligible earlier, may participate by
paying back contributions_____________________________
(120) Noncontributory and contributory features: Annuity based
on first $3,000 of base salary paid without cost to em
ployee; additional limited annuity, based on excess over
$3,000 salary, is paid if employee contributes 1 percent of
salary over $3,000_____________________________________
Administration-------------------------------------------------------------------------------------(121) Contributory plan: Joint committee makes rules and regula
tions, invests funds and approves expenditures; trustees
administer the funds; employer keeps records, compiles data,
accepts applications for retirement and transmits them to
committee_________________________________________________
(122) Noncontributory plan: Joint representation including represen
tative of employees who are not members of the contracting
union as well as union employees and employer______________
(123) Noncontributory plan: Trustfund administered by bank_______
(124) Insured contributory retirement plan administered by company
according to policies agreed to by parties___________________
(125) Noncontributory plan: Union pays benefits from employerfinanced fund_______________________ ______________________
(126) Joint committee to pass upon future applications and make
recommendations to company board of directors_____________
(127) Union may represent members before pension and benefit com
mittee_____________________________________________________
(128) Question of employer’s discrimination or bad faith in administer
ing pension, disability or death benefits may be subject to
grievance or arbitration procedure prescribed for enforcing
remainder of contract______________________________________
(129) Employer to furnish union with required data on benefit pay
ments__ , _________________
(130) Descriptive booklet to be issued by employer--------------------------(131) Certificate and booklet to be issued by insurance company------Disposition of funds on termination of plan___________________________
(132) Contributory, self-insured plan: If assets insufficient, avail
able funds to be prorated among eligible pensioners. No
refund if plan terminated^ pension payments continued
for pensioners already retired___________________________
144
145
145
145
145
146
146
147
148
148
148
148
148
149
149
149
149
149
149
149
INDEX
250
Administration— Continued
Disposition o f funds on termination of plan—Continued
Clause
Page
(133) Contributory insured plan: If plan discontinued, employee
receives pension at retirement age if pension amount ex
ceeds specified sum; receives lump sum including em
ployees contribution, if pension would be less than
specified amount---------------------------------------------------------(134) Contributory self-insured plan: If plan discontinued, funds
used first to pay benefits to those retired and those
eligible at time of abandonment. If funds insufficient,
amount of pension may be reduced. If excess funds
available, prorated to employees not drawing or not
eligible for pension, in proportion to their contributions. .
(135) Contributory self-insured plan: Employer is not entitled to
refund on termination of plan. Four-step termination
procedure_____________________________________________
(136) Noncontributory industry plan, self-insured: Union may set
aside reserves to pay benefits beyond expiration date of
contract_______________________________________________
Effective date of plan:
(137) Contributory plan: Effective date of plan same for com
mencement of contributions and payment of benefits to
eligible employees_____________________________________
(138) Noncontributory industry plan: Employer contributions to
begin on specified date; union to fix date for commence
ment of benefit payments_____________________________
(139) Contributory plan: Pension amounts stepped up after first
2 years in newly established plan_______________________
(140) Plan effective upon approval by U. S. Treasury Depart
ment. Prepayments to employees to be repaid to com
pany from pension trust fund__________________________
150
150
150
151
151
152
152
153
INDEX
251
APPENDIX
Page
Bituminous Coal Operators and United Mine Workers of America (Unaffil.). Welfare and Retirement Fund. Agreement effective July 1,
1947, as amended by National Bituminous Coal Wage Agreement of 1948
(dated June 25, 1948) effective July 1, 1948)__________________________
Bethlehem Steel Company and United Steelworkers of America (CIO).
Insurance and Pension Program______________________________________
Aluminum Company of America and Aluminum Workers’ Unions Nos.
18780, 19256, 23120, and 24288 (AFL), acting jointly in cooperation
with the International Council of Aluminum Workers’ Unions. Insur
ance and Pension Program. Agreement negotiated November 1949____
Ford Motor Company and United Automobile, Aircraft and Agricultural
Implement Workers of America (CIO). Retirement and Health and
Security Programs____________ ______________ ________ _______ _______
National Electrical Contractors Association and International Brother
hood of Electrical Workers (AFL). International Brotherhood of Elec
trical Workers’ Pension Benefit Trust Fund___________________________
Merchants’ Ladies Garment Association (New York, N. Y.) and Inter
national Ladies Garment Workers’ Union. Retirement Fund of the
Coat and Suit Industry. Agreement effective July 28, 1948__________
Brown and Williamson Tobacco Corporation (Louisville, Ky.) and Tobacco
Workers’ International Union (AFL), Local No. 185. Retirement Plan.
Agreement executed April 1949_______________________________________
Gary Railways, Inc. (Gary, Ind.), and Amalgamated Association of Street,
Electric Railway and Motor Coach Employee of America (AFL), Local
No. 517. Retirement Allowance Plan. Separate agreement for Retire
ment Allowance Plan dated November 10, 1943, as amended through
March 22, 1948_____________________________________________ ________
John Deere Harvester Works of Deere and Company (East Moline, 111.)
and International Union, United Automobile, Aircraft and Agricultural
Implement Workers of America (CIO), Local No. 865, Death, Disability,
and Pension Plan____________________________________________________
Circle Wire and Cable Corporation (Maspeth, Long Island, N. Y.) and
International Brotherhood of Electrical Workers (AFL). Employees
Security Fund. Agreement effective June 1, 1948____________________
Coleby Tailoring Company (member of Philadelphia Clothing Manufac
turers Association, Philadelphia, Pa.) and Philadelphia Joint Board,
Amalgamated Clothing Workers of America (CIO). Industry Health
Center Plan. Supplemental agreement effective August 15, 1947______
Shamokin Die and Print Works, Inc. (Shamokin, Pa.), and Textile
Workers’ Union of America (CIO). Group Insurance Plan. Agreement
effective August 20, 1948_____________________________________________
Standard Ultramarine Company (Huntington, W. Va.) and United Gas,
Coke and Chemical Workers of America (CIO), Local No. 180. Relief
Plan. Agreement effective August 20, 1947__________________________
Ship Scaling Contractors Association (San Francisco, Calif.) and Inter
national Longshoremen and Warehousemen’s Union (CIO), Local No. 2.
Industry Medical-Service Plan. Agreement effective September 1,1949-
U. S . GOVERNMENT PRINTING OFFICE $ I 9 6 0
154
162
174
177
181
188
193
196
202
206
211
215
218
221
@FedFRASER