Download Print Highlights of 2003 Negotiations September 14, 2003 Term of the Agreement 48 months - expired on September 14, 2007 On September 19, 2005, hourly base wage rates were increased by 2%, and on September 18, 2006 hourly base rates were increased by 3%. On September 19, 2005, salaried base salaries were increased 0.80% per week retroactive to September 22, 2003. In addition, effective September 19, 2005, base salaries were increased by the greater of 2% or $20.00 per week and effective September, 18, 2006, by the greater of 3% or $30.40 per week. A lump sum payment of $3,000 was given to each full-time employee on the active employment roll. A performance bonus payment equal to 3% of qualified earnings was made to eligible full time employees on October 15, 2004. Skilled Trades employees received an additional $0.30 tool allowance per hour in September 22, 2003. COLA continued to be based on a $0.01 adjustment for each 0.08159 change in the CPI-W. COLA Fold-in — $2.00 of the $2.05 COLA was folded into the hourly base rates. A $600 Christmas Bonus was paid to eligible hourly and salaried employees in 2003, 2004, 2005 and 2006. A total of 67 holidays were provided: 17 in each of the first, second and third years, and 16 in the fourth year. A Floater Day was transferred to September 2, 2005, the Friday before Labor Day. Base Employment Level (BEL)/Salaried Worker Employment Level (SWEL) — The quarterly .333% Benchmark adjustments were eliminated. The new Benchmark Minimums for each Unit were equal to 90% of the Unit’s Initial BEL/SWEL. Facilities expected to be closed or sold during 2003 will be excluded from the 2003 BEL Benchmark. Facilities that were closed or sold in 2004 and thereafter had BEL Benchmarks adjusted downward at the time the Corporation implemented the transaction. BEL Groups — BEL Groups have been eliminated. Hire Obligation Review Process — Any hire obligations unfilled after 120 days were reviewed. Volume Exclusion — BEL/SWEL employees impacted by a market-related volume decline remain eligible for up to forty-eight (48) weeks of layoff before placement on Protected Status. Plant Closing and Sale Moratorium Letter — Commitments in the letter remained in effect, with the following exceptions due to restructuring: plant closings; McGraw & Indianapolis; Sale of Operations - New Castle, Huntsville, Toledo Machining & New Venture Gear. Program Management Director Meeting — A joint meeting was held to review the updated sourcing process. Sourcing Team for Tracking — A joint study team was comprised of members formed to investigate the “Ford Tracking System.” Health Care Benefits changes below were effective January 1, 2004 unless otherwise specified. Eligible dependents included spouse, same sex domestic partners, children, stepchildren, children by legal guardianship. Medical Plan options included Standard Care Network (SCN), Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO). PPO Co-Insurance and Out-of-Pocket maximum for individual/family for In-Network – $0 (excluding office visits and physical exams at 50%). Out-of-Network – 20%, $500 individual, $1000 family Out-of-Pocket maximum SCN Co-Insurance and Out-of-Pocket for Out-of-Network – 20% Covered services included hospital, surgical, medical, prescription drugs, immunizations, preventive care, hearing, durable medical equipment and mental health and substance abuse. Hospital Services included semi-private room and board covered up to 365 days and may be renewed after 60 days, physician services, lab, x-ray, drugs and maternity benefits. Outpatient Services included routine office visits, physical exams, well-baby care, immunizations, outpatient physical, speech and occupational therapy covered in-network only. Prescription Drugs Co-pays for Standard and PPO Plans were applicable to each separate prescription order and refill for active employees and those who retired on or after September 15, 2003. Retail prescription drugs – $10.00 Brand Name, $5.00 Generic. Mail Order prescription drugs – $5.00 Brand Name, $5.00 Generic (HMO mail order band name and generic co-pays vary by plan). Dental coverage included diagnostic, preventive, restorative, oral surgery, prosthetics and orthodontics. Dental maximum increased from $1,600 to $1,700 effective January 1, 2005. Orthodontics lifetime maximum $1,900 effective January 1, 2004, and increased to $2,000 effective January 1, 2006. Vision coverage included examination, lenses and frames covered in full within program limits once every 24 months. Hearing Aid coverage included Hearing Aid evaluation test $126 effective October 1, 2004 (PPO and SCN). Audiometric exam, hearing evaluation test, one standard hearing aid, frequency limitation – once every 36 months, no coverage out-of-network. Mental Health and Substance Abuse coverage for PPO/SCN included: Inpatient – covered up to 45 days; may be renewed after 60 days. Outpatient – 35 visits per year covered as follows: 1-20 visits paid in full; 21-35 visits paid in full for Substance Abuse, 25% co-insurance required for mental health. HMO: Inpatient – 45 days per calendar year; may be renewed after 60 days. Outpatient – Mental Health 20 days per calendar year; Substance Abuse 35 visits per calendar year. Life Insurance eligibility after one month of employment. Basic Group Life amount determined by schedule of benefits. Hourly Bargaining Unit (HBU): $35,000 - $75,000 (depending on base hourly rate). Salary Bargaining Unit (SBU): $52,000 - $140,000 (depending on base weekly rate). Accidental Death and Personal Loss (ADPL) included as part of Basic Group Life Insurance. Amount of accidental death benefit is ½ of employee group life insurance. Benefits may also be paid if employee suffers certain bodily losses as a result of accidental injury. Survivor Income Benefits (SIB) included Transition Benefits, $350 per month for survivors eligible for unreduced Social Security Benefits and $650 per month for survivors not eligible for unreduced Social Security Benefits. Bridge Benefits $650. Voluntary – employee paid Optional Group Life (OGL) Insurance effective January 1, 2004, new coverage options up to $500,000. Voluntary – employee paid Dependent Group Life (DGL) Insurance, spouse up to $100,000, child up to $20,000. Spouse eligibility expanded to include same sex domestic partner. Disability eligibility after 6 months seniority. Sickness and Accident (S&A) duration to 52 weeks. Extended Disability Benefits (EDB) duration, 1-10 years: time for time, after 10 years: through age 65 Pension Future Retirees Basic Benefits Basic Benefit Rate increased in each year of the Agreement; total increase of $4.20. 30-and-out Early Retirement Supplement increased in each year of the Agreement; total increase of $290 Interim Supplement for employees who retire at employee option under age 62 and one month with less than 30 years credited service, increased over the term of the Agreement, by a range of $2.35 to $5.05 for each year of credited service. Temporary Benefit — payable to age 62 and one month, for employees who retire under Permanent Total Disability or Special Early Retirement, increased each year of credited service; maximum monthly benefits range from $1,372 to $1,494. $800 Lump Sum Payments — were paid in December 2003, 2004, 2005, and 2006 to current retirees, surviving spouses, and some alternate payees. Surviving spouses received $520 payments (65% of $800). Car Vouchers — Two $1,000 car vouchers were provided to current retirees during this Agreement. Special Survivor Option Benefit —was increased from $11.90 to $13.10 for each year of credited service. Current Retirees Following items remained unchanged: Basic Benefit, 30-and-out Early Retirement Supplement, Interim Benefit,, Temporary Benefit, Regular Surviving Spouse Option $800 Lump Sum Payments — were paid in December 2003, 2004, 2005, and 2006 to current retirees, surviving spouses, and some alternate payees. Surviving spouses received $520 payments (65% of $800). Car Vouchers — Two $1,000 car vouchers were provided to current retirees during this Agreement. Legal Services Plan was improved to provide additional coverage. Improvements made to the Employee-Retiree New Vehicle Purchase/Lease Program The maximum benefit for layoff increased, based on seniority. Employee Participation — Letter 124, New Attachment “A,” Manufacturing Workplace Organization Model. Provided a single, standardized, team-based model to increase plant efficiency and employee involvement for all UAW-represented DaimlerChrysler manufacturing sites. Technology Training Center (TTC) — A Joint Study Group was assembled to determine methods that could be employed to increase the effective utilization of TTC. Retiree Tuition Assistance — Maximum benefit increased from $1,250 to $1,500 annually. Scholarship for Dependent Children — Maximum benefit increased from $1,250 to $1,500 annually. Funding — Continue to fund Health and Safety training activities at $0.04 per hour worked and $1,200,000 for Health and Safety research. Improvements made in the following for Health and Safety; Plant Health and Safety Leadership Training, Ergonomics, metal working fluids, joint training programs, and lockout energy control Improvements were made for Preventative Maintenance (ventilation systems) Outside Contractors - A joint committee was formed to review the contractor safety manual and submit recommendations to the NJC. Tobacco Smoking — The Company continued to comply with all applicable local, state and federal laws regarding tobacco smoking in the workplace.