- Dec 21, 2002
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Active Engagement Restructuring
Management Changes at a Glance
Complete details on these components and information on other changes will be published as they become available.
PAY - Individual management base salaries will be reduced between 4 percent and 15 percent, using a graduated scale with incremental reductions based on your annual salary. The scale for level 1-8 employees is as follows:
Salary reduction steps Percent decrease
First $30,000 and under 4%
Next $30,001 - $60,000 7%
Next $60,001 - $90,000 10%
Amount from $90,001 and over 13.5%
For officers, the scale extends up to a 17% reduction. Chairman Don Carty's reduction is 33%.
Officer pay cuts are effective April 1, 2003, all other management reductions are effective May 1, 2003.
PRODUCTIVITY & STAFFING - Implement an immediate 5 percent reduction in management positions. Pay severance in monthly installments rather than a lump sum. Reduce layoff notification from 30 days to 14 days.
VACATION - Cap maximum vacation accrual at 6 weeks (30 days).
HOLIDAYS & HOLIDAY PAY - Retain 10 paid holidays per year. Discontinue holiday pay for management and offer comp time whenever possible, based on operational requirements.
SICK TIME - Reduce accrual to 5 days per year, maintaining current 150-day accrual cap. Continue paying sick time at 100% of salary.
MEDICAL & DENTAL PLANS - Increase monthly contributions to approximately 15 percent of medical plan costs. Maintain current levels of coverage and plan design. Costs will vary depending on the plan selected and the number of dependents covered. No changes to the Dental Plan.
PENSION - No changes.
RETIREE MEDICAL - Discontinue prefunding and refund contributions. Establish two retiree medical plans, a Pre-65 plan and a 65 and over plan. Retirees pay a monthly contribution for coverage based on a percentage of average retiree medical plan costs.
Other Articles
Active Engagement Restructuring Changes (4/1/2003)
Active Engagement Restructuring (4/1/2003)
Working Together (4/1/2003)
Active Engagement Restructuring (4/2/2003)
Working Together (4/1/2003)
Executive Compensation (4/1/2003)
Working Together (4/1/2003)
(More...)
755 / 3461 / 2634
EXAMPLE FOR A MANAGEMENT PERSON MAKING $70,000.00 PER YEAR:
FIRST $30,000.00 X 4% = $1,200.00
NEXT $30,000.00 X 7% = $2,100.00
NEXT $10,000.00 X 10% = $1,000.00
------------------------------------
$4,300.00 PAYCUT FOR A MANAGEMENT EARNING $70,000.
THIS IS ROUGHLY A 6% PAYCUT FOR A SUPERVISOR MAKING $70,000.00 AS OPPOSED TO THE REST OF THE MECHANICS 17.5% CUT!
Management Changes at a Glance
Complete details on these components and information on other changes will be published as they become available.
PAY - Individual management base salaries will be reduced between 4 percent and 15 percent, using a graduated scale with incremental reductions based on your annual salary. The scale for level 1-8 employees is as follows:
Salary reduction steps Percent decrease
First $30,000 and under 4%
Next $30,001 - $60,000 7%
Next $60,001 - $90,000 10%
Amount from $90,001 and over 13.5%
For officers, the scale extends up to a 17% reduction. Chairman Don Carty's reduction is 33%.
Officer pay cuts are effective April 1, 2003, all other management reductions are effective May 1, 2003.
PRODUCTIVITY & STAFFING - Implement an immediate 5 percent reduction in management positions. Pay severance in monthly installments rather than a lump sum. Reduce layoff notification from 30 days to 14 days.
VACATION - Cap maximum vacation accrual at 6 weeks (30 days).
HOLIDAYS & HOLIDAY PAY - Retain 10 paid holidays per year. Discontinue holiday pay for management and offer comp time whenever possible, based on operational requirements.
SICK TIME - Reduce accrual to 5 days per year, maintaining current 150-day accrual cap. Continue paying sick time at 100% of salary.
MEDICAL & DENTAL PLANS - Increase monthly contributions to approximately 15 percent of medical plan costs. Maintain current levels of coverage and plan design. Costs will vary depending on the plan selected and the number of dependents covered. No changes to the Dental Plan.
PENSION - No changes.
RETIREE MEDICAL - Discontinue prefunding and refund contributions. Establish two retiree medical plans, a Pre-65 plan and a 65 and over plan. Retirees pay a monthly contribution for coverage based on a percentage of average retiree medical plan costs.
Other Articles
Active Engagement Restructuring Changes (4/1/2003)
Active Engagement Restructuring (4/1/2003)
Working Together (4/1/2003)
Active Engagement Restructuring (4/2/2003)
Working Together (4/1/2003)
Executive Compensation (4/1/2003)
Working Together (4/1/2003)
(More...)
755 / 3461 / 2634
EXAMPLE FOR A MANAGEMENT PERSON MAKING $70,000.00 PER YEAR:
FIRST $30,000.00 X 4% = $1,200.00
NEXT $30,000.00 X 7% = $2,100.00
NEXT $10,000.00 X 10% = $1,000.00
------------------------------------
$4,300.00 PAYCUT FOR A MANAGEMENT EARNING $70,000.
THIS IS ROUGHLY A 6% PAYCUT FOR A SUPERVISOR MAKING $70,000.00 AS OPPOSED TO THE REST OF THE MECHANICS 17.5% CUT!
