Thursday, August 26, 2010

IAM / USA Negotiations / Thursday

The Union and company met again today with discussion focusing on economic proposals. We have made no progress on those issues you told us were important to you. Barring some discovery of conscience by the company, the Union's committee does not anticipate any movement on the key issues. It's quite likely we will be voting on the most regressive, concessionary contract ever offered by any company in the history of KSC. Lest you think it's just Union members that this company is abandoning- be aware-this company is imposing these same unconscionable economics on all their employees. So much for loyalty.

Undoubtably, the issue that has aroused the most concern among our members is the termination of the pension plan. We have heard rumors ranging from payout of pennies on the dollar to no payout at all. We are told that our pension monies are reasonably protected. Payout will be determined by actuarial reviews done on the plan's benefit worth conducted by an independent firm. If necessary, the Union has the right to challenge those findings. It is our understanding that the annuity option typically results in benefits paid close to the level that would have been paid had the plan not terminated. The lump sum payout is less certain but we understand there is not a great loss with this option, either. There are no guarantees but this is the best estimation at this time.

The negotiating committee recognizes how difficult this period has been for our members. We assure you, we will endeavor to improve the company's final offer.