Guild negotiators told management representatives that the current contract requires them to implement at least part of their 401(k) proposal for our members – without demanding anything in return.

That assertion was made in the third round of negotiations held Monday at Guild headquarters.

In the second round of talks on Thursday, November 16, the company spokesman, Attorney Stephen J. Macri of Putney, Twombly, Hall & Hirson, made the Guild a proposition: Agree to getting paid twice a month (instead of weekly paydays) and the company will make some improvements to our 401(k) Plan.

Only thing is, he said, it’s a deal the Guild would have to accept right away – nearly on the spot – if it were to go into effect the first of the year, the same time it will be effective for non-bargaining unit employees. It was like a one-day-only sale. All of which, made it impossible for Guild negotiators to accept.

The proposed changes in the 401(k) would do away with the year’s wait before participation by new employees, provide for immediate vesting and allow highly compensated employees up to 15% in contributions as opposed to the 6% they’re allowed now.

Monday, our Local Representative, Bob Townsend, told company officials they have to make the 15% contribution available now, anyway.

ARTICLE XVI – RETIREMENT AND SAVINGS INCENTIVE PLANS – Section 4 (b) of the contract reads: "Tax-Deferred Savings: Effective January 1, 1997, employee members may elect to save a percentage (in whole percentages) of their Plan Earnings (salary plus overtime), each year, on a tax-deferred basis, up to the statutory maximum on pre-tax 401(k) elective deferrals under the Internal Revenue Service regulations . . ."

Macri said no. He said the proposed changes in the 401(k) wouldn’t go into effect until January 1, of next near. The current contract expires December 31, of this year, he noted. He said next year’s 401(k) offering isn’t governed by this year’s contract.

We told the company lawyer that was nonsense. There’s an "evergreen" clause that says the current pact will remain in effect while a new one is being bargained.

He disagreed.

We told him to put the disagreement aside, do the right thing by our members and allow them to deduct "up to the statutory maximum on pre-tax 401(k) elective deferrals," just as the contract demands.

Macri said that’s impossible. Because of "safe harbor requirements," he said, the plan can’t be changed to allow the 15% deduction, if the other two aspects of the proposal (immediate vesting and doing away with the year wait of eligibility) aren’t also adopted.

Well, the response to that is simple. If the company has to give us immediate vesting and immediate eligibility to conform to the contract and offer us the statutory maximum on contributions, then so be it. Give us the whole enchilada. That’s what the company’s doing for non-bargaining unit people.

Macri complained that the Guild always wants to be treated like non-bargaining unit McGraw-Hill employees when they have a benefit that is greater than the contract provides, but doesn’t want to accept any of the inferior conditions of employment thrust upon the non-union employees.

He’s right about that.

The company’s refusal to abide by the current contract and allow our members to make the maximum 410(k) deductions allowed by the IRS, is going to force us to file a grievance on the matter. We’ll continue our attempt to resolve the issue at the bargaining table, but, failing that, and if we don’t get a positive response in the grievance, it looks like we’ll be compelled to go to arbitration to defend the contract that’s already in place.

The next negotiating session is slated for Tuesday, December 12.

The Guild’s committee consists of Townsend, who is the lead bargainer, Unit Chairperson Ed Fannon, Brian McGuire of Facilities and Services Management, Marilyn Bissell of Cash Systems, Peter Burke of Ratings Information Services, Leo Larkin of the Analytical Department, John Matis of Data Operations, Dorothy Madison of Subscriber Services – Circulation Fulfillment and Caheim Murray of Mail Services.

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