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USW accepts ratified Arconic contract

Union members passed a 60-40 vote Wednesday to accept a new four-year contract from Arconic, USW Local 105 President Patrick Stock confirmed with News 8.

BETTENDORF, Iowa — Update: The United Steelworkers Union passed a 60-40 vote Wednesday to accept a four-year ratified contract from Arconic, USW Local 105 President Patrick Stock confirmed with News 8.

The union said they would not release the voting results for each local. The final tally was decided by just over 350 votes.

Arconic released the following statement after Wednesday's vote:

"We are pleased that our USW represented employees at Arconic's master contract locations ratified the agreement tonight. The new collective bargaining agreement covers about 3,400 employees and runs through May 15, 2026."

Original: A ratification vote is currently underway between the United Steelworkers Union and Arconic. Voting began at the Waterfront Convention Center early Wednesday morning at 5 a.m. and will last until 7 p.m.

USW and Arconic reached a tentative contract agreement on May 14 following a rally by union workers outside of Arconic locations.

USW Local 105 said the new contract lasts four years and includes a 7% raise in the first year, followed by a 4.5% raise in the next three years. The raises represent an average cumulative increase of $6.54 per hour or 22.1% over the course of the four-year deal.

On May 14, USW Local 105 released the following statement regarding the new proposal:

"We've reached a Tentative Agreement (with) Arconic that is fully endorsed by your bargaining committee. Thanks to everyone's solidarity and support, we achieved a fair deal!"

"We believe this agreement accomplishes our goal of rewarding our employees for their commitment as essential workers while enabling our business to grow for future sustainability," said John Riches, the Arconic Davenport Works Communications and Public Affairs Manager.

The proposal eliminates the plant-level "Pay for Performance Plans" in favor of wage increases. USW said the Pay for Performance Plans were first negotiated in 1993 to replace an underperforming profit-sharing plan. The payout portions were tied to corporate financial performance and business unit location measurements.

"(The plans) did well during some periods, over time they became less transparent, profit definitions repeatedly changed, and once achieved, thresholds were ratcheted up to reduce payments. For example, the Davenport plan did nothing in 1Q 2022, despite profits," wrote USW in a proposal summary obtained by News 8.

USW said the proposal maintains current health care plans with no premium increases. The union also said the agreement improves the current pensions for workers. These include "multipliers" for employees hired before June 23, 2006 and employees hire on or after June 23, 2006 and before January 1, 2020 will be increased by $6 per month per year of service — effective for retirements occurring on or after May 16, 2022.

Martin Luther King Jr. Day would be added as a paid holiday along with an additional $4,000 in signing bonuses for union workers — $2,000 upon signing and $2,000 in January 2023.

"The hourly wage increases are to make up for the termination," Local 105 wrote May 15 on Facebook. "Wages are something we can count on in overtime and our vacation rate. We could never depend on PFP which is variable pay, to pay out. We can depend on our wages."

USW and Arconic have been negotiating a new contract since April 25 in Pittsburgh, according to Local 105 union leader Lee Shaffer.

On May 12, union workers overwhelmingly voted in favor of authorizing a strike had a tentative agreement not been reached by the noon deadline on May 15.

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