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Piper Aircraft and Union Employees Reach Agreement to End Strike Possibility

by Mr. Flight on July 2nd, 2005

Piper Aircraft has reached an agreement with union employees in a deal that will provide contracts through July 1^st, 2008. The union employees had been working without a contract since October of 2003.

Sixty-eight percent of the 729 local union employees approved the contract. If the vote had not passed the union would have then voted on a strike. Some terms of the agreement:

• Standard, but not guaranteed, work day of eight-and-one-half consecutive hours with a 30-minute, unpaid lunch break and two 10-minute paid breaks.
• Effective today, The New Piper will absorb the increase in total health-care costs for the next 12 months. On July 1, 2006, and again a year later, the company’s contribution to increases in total health care will be capped at 5 percent.
• In 2006 and 2007, qualified employees will receive annual pay raises capped at 2 percent.
• Seniority will be based on an employee’s years of continuous service with the company since last hire date.
• New Piper will not lock out employees and employees will not strike.
• Concerning overtime, any hours more than 40 during a work week will be paid at time and one half an employee’s regular hourly rate. The company can schedule overtime as needed, notifying workers whenever possible 24 hours in advance of the additional hours.
• No changes to 401(k) plan.
• Grievance procedure, arbitration and mediation procedure for employees.

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