UAW CATERPILLAR TENTATIVE AGREEMENT

 

 

Important highlights and or modifications to Caterpillar’s August 5, 2004 offer:

 

HEALTH CARE

 

Current Retirees

 

1992 – 1998              Premiums remain at 60/40 future inflation sharing level

                                    beginning 2/1/05.

 

                                    Co-insurance at the 90/10 level beginning 1/1/06.

 

                                    Upfront deductibles of $300/$600 beginning 1/1/06.

 

                                    MOOP of $750/$1500 beginning 1/1/06.

 

1998 – 2004              Premiums remain at 60/40 future inflation sharing level

                                    beginning 2/1/05.

 

                                    Co-insurance at the 90/10 level beginning 1/1/06.

                                    80/20 level beginning 1/1/08.

 

                                    Upfront deductibles of $300/$600 beginning 1/1/06.

 

                                    MOOP of $1000/$2000 beginning 1/1/06.

 

Future Retirees

 

                                    Premiums remain at 60/40 future inflation sharing level

                                    beginning 2/1/05.

 

                                    Upfront deductibles of $300/$600 beginning 1/1/06.

                                    $500/$1000 beginning 1/1/08.

 

                                    MOOP of $1000/$2000 beginning 1/1/06.

                                    $1500/$3000 beginning 1/1/08.

 

                                    RX co-pay of $100 for prescriptions costing $1000 or more

                                    beginning 1/1/08.

 

 

Actives

 

                        Premiums remain the same beginning 6/1/05.

                        Co-insurance at the 90/10 level beginning 1/1/06.

                        80/20 level beginning 1/1/08.

 

                        Upfront deductibles of $300/$600 beginning 1/1/06

                        $500/$1000 beginning 1/1/08.

 

                        MOOP of $1000/$2000 beginning 1/1/06.

                        $1500/$3000 beginning 1/1/08.

 

                        Rx co-pay of $100 for prescriptions costing $1000 or more

                        beginning 1/1/08.

 

 

GROUP INSURANCE

 

Flexible Spending Account

Utilization of the Flexible Spending Account to begin 1/1/06.

 

All unused monies to be utilized to offset cost of administration of the FSA and to

reduce the cost of benefits.

Payroll deduction of premiums will be on a pre-tax basis beginning 6/1/05.

 

Competitive Wage Employees

Eligible employees with 3 years of seniority may purchase the full benefits package

beginning 6/1/05 at the group rate.

 

 

PENSION BENEFITS

 

Grow in

The Retirement Penalty for retirements between 2007 and 2009 was eliminated.

 

Metering process in effect the first six months of the agreement is as follows:

            37 years or more – 3/1/05

            33 years or more – 4/1/05

            32 years or more – 5/1/05

            31 years or more – 6/1/05

            30 years or more – 7/1/05

 

Credited Service

The pick up of lost credited service is now an option in the event of a Special Early Out offer is made in lieu of the Supplemental payments in an amount equal in value.

 

QPSA

The QPSA charge for pre-retirement survivors of employees who die on or after 1/1/05 was eliminated.

 

CENTRAL LABOR AGREEMENT

 

Supplemental Employees

A conversion payment of $3000 to be paid to current supplemental employees

hired prior to 7/10/04 actively working 1/10/05 and not covered by LOA 26 within

30 days following acceptance of an offer of regular employment, $2000 if hired after 7/10/04.

 

Caterpillar Logistics Services Employee Bonus

A bonus of $1000 to each employee assigned to labor grades 1 or 2 at a CLS facility actively working on 1/10/05 60 days following the effective date of the Central Agreement.

 

Vacation

Restored the 1998 language and maintained lump sum vacation payments for actives and provided lump sum vacation payments for New Hires.

 

Signing Bonus

$3000 signing bonus to be paid within 30 days following ratification to all eligible active employees.

 

Lump sums

All eligible regular full wage employees:

            4% in 05, 3% in 06, 3% in 07, 2% in 08, 2% in 09

All eligible New Hires

            3% in 07, 2% in 09

All eligible Competitive Wage Employees

            3% in 06, 2% in 08

 

General Wage Increase

A GWI of 2% effective 12/8/08 for eligible New Hires

 

Current Retiree Lump Sums

            Up to $750 in 05, in 06, and in 07

 

Duration

The Agreement expires March 1, 2011.

 

 

OFFSETS

 

Incentive Compensation

The Incentive Compensation Plan was eliminated effective 1/1/05 to reduce the cost of health care thereby lowering Deductibles, Co-insurance levels, and or Maximum Out-of-Pocket levels.

 

The 2004 Incentive Compensation payment will be made to eligible employees in early 2005.

 

 

 

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