March 28, 2001

 

MANAGEMENT WANTS

TO FREEZE MAXIMUM SALARIES

 S&P’s Compensation Proposal

Is Little More Than a Bonus Plan

 

Local Representative Bob Townsend, the Guild’s lead negotiator in the current talks, told company officials he was “shocked” by their compensation proposal and said he couldn’t imagine the circumstances under which the union would agree to such a scheme. 

Guild Negotiating Committee Member Marilyn Bissell of Cash Systems was more blunt. She blurted across the table: “That sucks!” 

What Standard & Poor’s wants to do is to agree on a percentage increase and, instead of applying it to the salaries of employees at the top of their classifications, they want to pay it to them in a lump sum at the beginning of the contract year. 

That sucks! If you’re making $1,000 a week, in three or four years when the contract expires and you’re talking about a percentage increase, you’ll still be talking about applying the percentage to $1,000 a week. 

That sucks! There wouldn’t be any compounding of raises during the life of this contract. 

That sucks! Contributions for all of your benefits would be based on what you’re making today. 

That sucks! Your salary will be frozen for the life of the contract. 

S&P’s plan is no more than a bonus plan and that sucks! 

On top of that, S&P wants to freeze the first two steps of the minimums in every classification. In some cases, there are only three experience steps to the top, so the entire classification will be frozen. 

S&P’s chief negotiator, Stephen J. Macri, a lawyer with the firm of Putney, Twombly, Hall & Hirson, didn’t specify what percentage the company wasn’t offering to apply to the maximums or the minimums.

“I’m not a volleyball player,” Macri commented. “I don’t necessarily respond to an unreasonableness with an unreasonableness.” 

Apparently, he was characterizing the Guild’s proposal, delivered earlier in the meeting as being unreasonable. 

Earlier, the Guild had proposed a three-year contract with a 10% general increase in the first year of the pact, 7% in the second year and 7% in the third year. According to the Guild’s proposal, the percentage increases would be applied to the maximums, the hiring in salaries and all the steps in between. 

And, yes, the Guild’s proposal would do away with the “merit” system of pay raises that are currently in effect for employees new to S&P since the signing of the last contract and haven’t reached the maximums in their classifications. Macri said S&P has no intention to do away with the merit system. 

“We have no desire to go backward and wipe out what was accomplished” in the last round of bargaining, he said. 

The Guild maintained its proposal for TransitChek. (The company’s position is it will give Guild employees the ability to participate in TransitChek if the McGraw-Hill makes the program available to its non-union employees.) 

The Guild is maintaining its proposal to have analysts covered by the Guild contract be eligible for the incentive bonus that is applied to management analysts. Townsend told the company that Analyst Leo Larkin, a member of the Guild’s Negotiating Committee, will be making that pitch at the next bargaining session (Tuesday, April 20). Company negotiators said they’ll listen. 

The Guild maintained its proposals for increases in meal allowance and meal allowance during Saturday and Sunday work. The company said no. 

The Guild maintained its proposal to have Good Friday put back into the list of holidays at S&P. The company said no. 

The Guild withdrew its proposal for a better tuition reimbursement. 

The Guild maintained its proposal to have Employment Retirement Plan benefits calculated on 2% of the eligible earnings as opposed to the current 1%. The company said no. 

The Guild maintained its proposals for a Longevity Bonus, a Christmas bonus and a Perfect Attendance Bonus. The company said everyday at Standard & Poor’s is Christmas. 

The Guild maintained its proposal to have S&P provide a Day Care Center. The company didn’t respond. We took that as meaning no. 

In addition to Townsend, Unit Chairperson Ed Fannon, Bissell and Larkin, the Guild is represented at the table by Brian McGuire of Facilities and Services Management, Peter Burke of Credit Information Services, John Matis of Data Operations, Caheim Murray of Mail Services and Dorothy Madison of Subscriber Services – Circulation fulfillment. 

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