3. Equal Sacrifice of Non-Bargaining Unit Employees and Their Participation.
(a) All non-bargaining unit employees (including management) will participate equally in the Plan, and the Employer will share the burden of sacrifices among all IBT bargaining unit and non-bargaining unit employees (including management), in each case, as described in this Section 3(a). The Employer must reduce the total compensation (defined as wages plus health and welfare and pension or retirement benefits) of all non-bargaining unit employees (including management) by the same percentage reduction (an “Equal Reduction”) in total compensation as is being applied to IBT bargaining unit employees. Non-bargaining unit employees (including management) shall not be provided any discretionary bonus payments during the life of this Plan (these are distinct from the pre-existing incentive and performance based pay plans that are expressly allowed to continue, as noted in the final paragraph of Section 10 below). In determining the Equal Reduction for non-bargaining unit employees under this Plan, the Employer may include the monetary value of the following concessions imposed on non-bargaining unit employees starting on January 1, 2008:
(1) Deferral of 2008 wage increases from January to April and associated reductions in 401(k) company match and reduction in pension benefit due to lower base pay;
(2) Changes in health care plan premium, office visit co-pay, medical co-insurance and prescription drug generic co-pay effective January 1, 2008;
(3) No wage increases in 2009 and associated reductions in 401(k) company match and pension benefit due to lower base pay;
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(4) Changes in health care plan premium, tobacco-use surcharge and deductible effective January 1, 2009;
(5) No defined contribution pension plan payments in 2009;
(6) No wage increases in 2010 and associated reductions in defined benefit pension plan benefits due to lower base pay;
(7) No 401(k) company match in 2010;
(8) No defined contribution pension plan payments in 2010; and,
(9) Increase in health care plan premium, tobacco-use surcharge increase and prescription drug deductible increase effective January 1, 2010.
Effective the first pay period following the date of ratification of this Plan, additional wage and benefit concessions must be imposed on non-bargaining unit employees to the extent needed to create an Equal Reduction. The Employer agrees not to increase wages (including bonuses) and benefits of current non-bargaining unit employees (including management) as an overall percentage beyond the effective overall total compensation percentage increases to be received by the bargaining unit employees. This shall not prevent the Employer from providing targeted increases to individual employees if necessary, in the Employer’s judgment to operate the business, or in the event of promotions, so long as the overall total compensation increases are within the effective overall total compensation percentage increases to be received by the bargaining unit employees (consistent with Equal Reduction). This shall not prevent the Employer from paying variable, performance based compensation as the Employer has paid in past practice. If it becomes necessary to exceed this overall percentage increase limit in order to retain employees for the efficient continued operation of the business, the Employer will request approval from the Subcommittee established in Section 6 below. The Employer will be permitted to reinstate merit increases in 2011, provided that Employer’s financial condition can support any increase to base wages.
(b) The Employer and TNFINC agree to use their reasonable best efforts to achieve equal sacrifice in the total compensation of employees covered by non-Teamster and non-NMFA collective bargaining agreements.
