Effective date

Provision

Applications, exceptions, and other related matters

Nov. 1, 1957 (agreement dated Nov. 3, 1956)— Continued

Jan. 1, 1960 (agreement dated June 23, 1960).8

June 23, 1960 (agreement of same date).

Pension Plans-Continued

Added: Early retirement-Employees aged 60 but less than 65 with 15 years' continuous service permitted to retire at own option; could elect (1) deferred normal pension starting at age 65 or (2) an immediate pension, actuarially reduced.

Added: Deferred vested rights-Employees laid off for more than 2 years or terminated as a result of a permanent shutdown of a plant, department, or a subdivision and who at the end of such 2 years or upon such termination had reached age 40 with at least 15 years' continuous service to receive deferred monthly pension at age 65 based on years of continuous service and on average monthly compensation during the 120 months prior to the expiration of such 2 years or such termination. Minimum monthly pension at age 65 increased to company payment of $2.50 a month for each year of service prior to Jan. 1, 1960, and $2.60 a month for each year of service thereafter, up to 35 yearsplus social security benefits." Amount deducted for social security benefits from pension benefits as computed by basic 1-percent formula, reduced to $80. Minimum monthly pension prior to age 65 for permanent incapacity increased to $100 less any social security disability benefits payable. Alternatives of minimum normal pension or amount under 1-percent formula continued. Early retirement: Added-full pension based on continuous service to date of retirement for (1) employees aged 60 but less than 65 with 15 year's, continuous service, retired under mutually satisfactory conditions, and (2) employees aged 55 with 20 or more years' service, terminated because of permanent shutdown, layoff, or sickness resulting in break in service. Amount of pension either minimum normal pension or amount under 1-percent formula.

Added: Special retirement benefit, providing lump-sum payment equal to 13 weeks' vacation pay reduced by pay for vacation previously taken in calendar year in which retirement occurred or, if employee was not eligible for vacation in the year of retirement, by pay for vacation in last year in which he was eligible.

Pay for Trial Trips

Company increased pensions for retired employees by amounts up to $5 a month.10

In case of pensions based on 1-percent formula, $80 to be deducted as for normal retirement.

Employee must have reached age 53 with 18 years' continuous service on date of shutdown, layoff, or disability."1 Company could at its option grant a pension prior to the date absence due to layoff or physical disability would otherwise result in break in service if in its judgment there was little likelihood that employee would be recalled to work.

Not applicable to those receiving disability or deferred vested pensions. Regular monthly pension payments to commence after 3 months. Employee who has not taken vacation in calendar year not required to take vacation and not entitled to vacation pay in that year.11

Changed to: Pay for a holiday to be the greater of (a) 16 hours at regular hourly rate, or (b) 2 times regular hourly rate on holiday other than 1 of 7 specified holidays, or (c) 24 times regular hourly rate on 1 of 7 specified holidays.

See footnotes on p. 51.

Less than $1.94-----$1.94 but less than $2. 32. $2.32 but less than $2.70. $2.70 but less than $3.14. $3.14 but less than $3.52.. $3.52 and over...

Less than $2.29..

$4,000 $1,300

$53

$7.50

$9.50

Life insurance

Employee's Weekly monthly accident contribution**

and

sickness

$2.29 but less than $2.71. $2.71 but less than $3.11. $3.11 but less than $3.55. $3.55 but less than $3.93. $3.93 and over..--.

4,500

1,350

56 7.80

9.80

5,000

1,400

59

8.10

10.10

5,500 1,450 6,000 1,500 6,500 1,550

ents ents

On basis of July 1, 1960, wage scale, excluding incentive earnings. **For contributions of employees in New Jersey and New York, see footnote** under footnote 3.

? Amendments became effective Mar. 1, 1950.

In a letter to the union from the company dated June 23, 1950, it was agreed that in the event pension benefits in effect at the company's basic steel plants were changed prior to June 1, 1963, pursuant to agreement between the company and the United Steelworkers of America, the same changes in benefits would be made applicable simultaneously to employees in the company's Atlantic coast shipyards division.

Definition of continuous service was changed to extend the period which could elapse before a break in service up to 5 years (was 2 years) after layoff, depending on length of service. Previous practice of crediting up to 2 years of layoff as years of service for purposes of computing retirement benefits continued.

10 Included in a letter to the union from the company dated June 23, 1960. The $5 increase was provided for all pensioners except those electing to receive a reduced amount under a pension option, for whom the increase was prorated accordingly.

Included in a letter to the union from the company dated June 23, 1960

ON JULY 28, 1959-just prior to the expiration of their existing contracts 2-the Aluminum Company of America and the United Steelworkers of America and the Aluminum Workers Internaional Union agreed to extend their agreements until November 1 or 30 days after settlement of a nationwide steel strike then taking place, whichever was earlier. The parties also agreed that any benefits that would be effective in the first year of he contract resulting from their negotiations were o be retroactive to August 1, 1959, except pension benefits, which were not to be effective until January 1, 1960. In November 1959, the conract extension was automatically continued, since neither of the parties terminated the agreement

by the 10-day notice required in the original document.

Tentative agreement on the economic terms of new contracts was reached on December 19, 1959, about 2 weeks before the steel settlement. The new wage and fringe benefit package was valued. by the parties at between 28.5 and 30 cents an hour over the 3-year contract period. The agreements provided for one retroactive as well as two deferred wage increases.

Differences among plants in the wage and job increment increases agreed to during the 1959 negotiations apparently were directed toward the establishment of a uniform wage-rate structure in all of the company's plants covered by agreements with the two unions. As in some earlier contracts,

1 For basic chronology and previous supplements, see Monthly Labor Review, December 1950 (pp. 688-692), July 1951 (pp. 56-57), February 1953 (pp. 153-154), August 1954 (pp. 880-881), and June 1958 (pp. 634-642), or Wage Chronology Series 4, No. 11. The basic chronology and its supplements cover only plants organized by the United Steelworkers of America and the Aluminum Workers International Union.

2 Contracts remained in force through July 31, and pension agreements through December 31, 1959.

general wage and increment increases were larger at plants with lower wage rates or increments. Over the 3-year period covered by the agreements, there will be a narrowing of the rate differences that existed in the plants represented by each of the unions. By the time the final increase due under the 1959 agreements becomes effective, the majority of plants represented by both unions will have the same hourly rate for labor grade 1. The net effect of the increases was to reduce, but not eliminate, differences in wage rates for the same occupational class by the end of the contract term.

Under the terms of the new agreements, the cost-of-living formula provided in the previous agreements was continued, the allowance was frozen at 17 cents until August 1, 1960, and limits were established on further increases in the allowance after that date. The company also agreed to assume the entire cost of the dependents' hospital and surgical insurance, part of which had been borne by the employees. In addition, some

Effective date

Aug. 1, 1958 (AWU memorandum of settlement dated July 31, 1956, and USA agreement dated Aug. 9, 1956).

First pay period beginning in Aug. 1958 (AWU memorandum of settlement dated July 31, 1956, and USA agreement dated Aug. 9, 1956). First pay period beginning in February 1959 (AWU and USA).

Aug. 1, 1959 (USA and AWU agreements dated Dec. 19, 1959).

Provision

Applications, exceptions, and other related

matters

Deferred increase. Proportionate increase in incentive earnings. AWU-Increments at the Chillicothe (Ohio) and Cressona (Pa.) plants, were increased 0.5 cent and 0.3 cent, respectively. Increase in increments between job classes at all AWU plants resulted from completion of wage-study program under terms of July 31, 1956, memorandum of settlement, which provided for final contribution to fund of 1.5 cents. Semiannual adjustment of cost-of-living allowance.

Do.

Agreements also provided deferred increases on Aug. 1 of 1960 and 1961. See provisions reported below under these dates. Agreements contained the following provisions regarding cost-of-living allowance: (1) continued the 17-cents-an-hour allowance, (2) froze allowance until Aug. 1, 1960, (3) provided for review on Aug. 1, 1960, Feb. 1 and Aug. 1, 1961, and Feb. 1, 1962, and (4) continued existing formula but limited increase to 6 cents, of which maximum of 3 cents could be effective Aug. 1, 1960, to July 31, 1961.1

See footnote at end of table.

Effective date

Aug. 1, 1959 (USA and AWU agreements dated Dec. 19, 1959)-Continued.

Aug. 1, 1960 (USA and AWU agreements dated Dec. 19, 1959). 1

First pay period beginning in August 1960 (USA and AWU).

First pay period beginning in February 1961 (USA and AWU).

Aug. 1, 1961 (USA and AWU agreements dated Dec. 19, 1959).

First pay period beginning in August 1961 (USA and AWU).

First pay period beginning in February 1962 (USA and AWU).

Provision

USA-At 11 of 13 plants, 5 cents an hour general increase.

AWU-At 5 of 9 plants, 5 cents an hour general increase plus 0.1-cent increase in increments between job classes, resulting in added increases up to 2.7 cents for top grade.

Increases, estimated to average 7.1 cents an hour.

USA-At 11 of 13 plants, 7.3 cents an hour general increase.

AWU-General increases of 4 to 7.1 cents

an hour and increases in increments between job class rates of 0.1 and 0.2 cent, resulting in increases of 2.7 and 5.4 cents for top job grades.

3 cents an hour allowance added to straighttime hourly earnings.

No change...

Increases, estimated to average 8.9 cents an hour.

USA-At 11 of 13 plants, 7.4 cents an hour general increase plus 0.2-cent increase in increments between job classes, resulting in added increases up to 5.4 cents for top grade.

AWU-At 4 plants, 8 cents an hour general increase plus 0.2-cent increase in increments between job classes, resulting in added increases up to 5.4 cents for top grade.

3 cents an hour allowance added to straighttime hourly earnings.

No change..

Applications, exceptions, and other related matters

Hourly rates at the Edgewater (N.J.) plant were increased 3.1 cents plus an 0.1 centincrease in increments between job classes; rates at the Detroit (Mich.) plant were increased 1.1 cents plus an 0.2-cent increase in job increments.

"Red-circle" rates increased by amount applicable increment increase exceeded differential; where differential exceeded increment increase, it was reduced by amount of such increase.

Hourly rates at the East St. Louis (Ill.) and Davenport (Iowa) plants were increased 3 cents, and at the Vancouver and Wenatchee (Wash.) plants, 3 cents plus an 0.3-cent increase in increments between job classes.

Workers in red-circle (out-of-line) jobs did not receive increment increases. In effect, increases in increments applied toward reduction of differentials between out-ofline rates and evaluated job rates. Deferred increase.

Hourly rates were increased 6.3 cents at the Edgewater plant and 6 cents at the Detroit plant.

Hourly rates were increased 7.1 cents plus increases in increments of 0.2 cent at Chillicothe, Cressona, and Lancaster (Pa.) plants, 7.1 cents plus 0.1 cent at Lafayette (Ind.) and Massena (N.Y.), 6 cents plus 0.1 cent at East St. Louis, 4 cents plus 0.2 cent at Vancouver and Wenatchee, and 4 cents plus 0.1 cent at Davenport. Adjustment of cost-of-living allowance.

Maximum allowance permissible at this time already in effect as result of August 1960 review. Deferred increase.

Hourly rates were increased 6 cents at the Edgewater and Detroit plants, plus 0.2cent increase in increments.

Hourly rates were increased 8 cents plus 0.3 cent at Cresonna, 7.5 cents plus 0.2 cent at East St. Louis, and 4.5 cents plus 0.2 cent at Davenport, Vancouver, and Wenatchee.

Adjustment of cost-of-living allowance.

Maximum allowance permissible at this time already in effect as result of August 1961 review.

Aug. 1, 1959 (USA agree

ment dated Dec. 19, 1959).

Jan. 9, 1960 (AWU agreement dated Dec. 19, 1959).

Paid Vacations

Changed to: Vacation pay to be based on employee's average straight-time hourly earnings and average weekly hours worked during the first 4 of the last 6 weeks (excluding any week in which a paid holiday was observed) in which employee worked prior to (a) the date the vacation began (or 14 days preceding that date if employee requested advance vacation pay) or (b) the date the vacation was considered as starting.

Changed to: Vacation pay to be based on employee's average straight-time hourly earnings and average weekly hours worked during last completed calendar quarter (excluding any week in which a paid holiday was observed) in which employee worked prior to (a) the date the vacation began (or 14 days preceding that date if employee requested advance vacation pay) or (b) the date the vacation was considered as starting.

Aug. 1, 1959 (USA and AWU agreements dated Dec. 19, 1959).

Changed to: For employees and dependents, company-paid plan providing benefits previously in effect plus changes described below:

Employees' contributions for dependents' coverage for pay periods beginning Aug. 3, 1959, and thereafter, to be refunded. Benefits of revised plan applicable to all employees actively at work on or after Aug. 1, 1959, and their dependents. Benefits of prior plan continued until return to active employment for employees not actively at work on Aug. 1, 1959, subject to maximum periods provided in prior plan.

All insurance continued for employees disabled because of sickness or injury up to 1 year from last day worked or until retirement or termination of seniority, whichever was earlier.

Hospital room and board, special hospital services (including maternity benefits), and surgical benefits continued up to 6 months for laid-off employees with 2 or more years' continuous service at date of layoff, unless seniority was terminated, and their dependents. Benefits continued up to 31 days for laid-off employees with less than 2 years' continuous service at date of layoff and their dependents.