IAM / USA Exchange Economic Proposals

The Union and company exchanged economic proposals today. Your negotiating committee submitted a wide-ranging package which we felt was a basis to begin reasonable discussion and best reflected the needs you had expressed in the contract surveys. The company responded with the most regressive, concessionary contract proposal ever in this Union's history at KSC. We felt you should have some idea of what was proposed by the company. The following is not all of the company's demands but is representative of their economic proposal;

No raise in the first year

No participation in EIP Plan

Termination of the Retirement Plan (choice of annuity or lump sum payout option)

Termination of the IAM National Pension Fund 401K Plan

Termination of company participation in the IAM Dental Plan

Reduction in the basic life insurance

Elimination of $105.00 per week short term disability Basic Core Plan

Dramatic increases in employee contribution to health care plan (USASO levels)

Decreases in level of coverage in medical care plan (USASO levels)

Reduction in annual holidays (elimination of Christmas Break)

Reduction in annual sick days (USASO levels)

No recall rights for those requesting a voluntary layoff

Consolidation of Machinist, Sheet Metal and Welder classifications

Your negotiating committee will continue to review the company's proposals and determine an appropriate response.