BNA - Guild News

Dec. 23, 2002

Guild Proposes BNA Increase Wage Spending by 6.75 % Annually

The Guild proposed Dec. 19 that compensation pool "for total annual bargaining unit salaries" be increased by 6.75 percent in each year of a new contract with BNA.

Such an increase would be allocated "across the unit and in a wage structure to be negotiated by the parties." The Guild's proposal was in response to BNA's proposal for a one-time increase of 3 percent for three years in a complex, new wage structure.

Guild chief negotiator Lori Calderone said the union's proposal "seeks fair increases" for all employees, whether they are in the steps or at or above the top step. "We believe BNA shares this objective," Calderone said.

BNA chief spokesman Joseph Sanneman said the Guild's opening offer was "not outlandish ... a reasonable proposal."

In her statement, Calderone said, "The Guild seeks to assure that whatever compensation system is negotiated, that employees understand what increases will be received in terms of their own salaries, not some other salary figure." BNA's proposed salary increases are a percentage of mid-point, not a percentage of your current salary. The Guild prefers to avoid a compensation structure that is "confusing and potentially misleading," she said.

Company Seeking "Quartiles"

In discussing whether employees would accept a complex new system, BNA compensation director Kathy Muller said, "I can understand that people understand and are comfortable with the old structure."

Under BNA's proposed structure, employees would be slotted in four "quartiles," and wage increases would depend on where employees were slotted. Salary ranges would be widened, but it would take longer (6-12 years) than under the current system (6 years) to get to the maximum step.

Sanneman said the company was prepared to make extensive efforts "on educating people" about the benefits of the new system. The goal would be "to get people over the fright of something new," he said.

The Guild's analysis of the company's offer shows that the majority of Guild-covered employees would get raises of less than 2.3 percent a year. Employees above the maximum of their grade would receive 1.2 percent, or even less.

In commenting on keeping BNA's salaries competitive, which is a major goal of the new pay system, Muller said recent hiring experience suggests "our concern that our current structure is not competitive may be exaggerated." Sanneman added: "In most cases, it is competitive' in some cases, it is not."

Although much discussion has been held on compensation structures, Calderone emphasized that "the funding level is the No. 1 issue." BNA's proposal, noted the Guild, is two-fold-a proposal on structure and a proposal on money. The Guild is viewing the structural options through a prism of how much money is on the table-thus the Guild's proposal to increase the annual compensation pool by 6.75%.

Other Actions at the Table

BNA offered no counter proposals on the 19th, but indicated its thinking on several Guild proposals:

• BNA said that "to a certain extent" it still wants "one or the other" of the current sabbaticals program or a new voluntary community service program. The company has proposed replacement of the 15-year-old sabbaticals program with paid time off for one-day community service by a wider group of employees.
• BNA said it is pursuing possible establishment of a short-term disability insurance program to cover employees out of work 90 days or fewer, after which the company's long-term disability insurance kicks in. The company repeated its earlier position that costs of a short-term disability plan would have to borne by participating employees, and quoted employee costs of about $10 per week.
• Regarding the Guild's proposal for a pre-tax, flexible spending program to cover non-BNA parking, the company suggested it would provide either the current reimbursement plan (now $52.50 per month) or the pre-tax program, but not both. The Guild has proposed raising the reimbursement level to $65 per month. In a pre-tax plan, the IRS would allow a $190 monthly salary deduction for off-site parking.
• The company withdrew its proposal to eliminate emergency backup child care in Rockville, contingent on the current provider's willingness to continue the service, which BNA stressed has been little used.
• Also withdrawn was management's proposal to make some employees exempt from the federal Fair Labor Standards Act (the wage and hour law), which would affect compensatory time off, including provisions on travel time.

Negotiations resume at 5 p.m. Tuesday, Jan. 7 in the Bldg. 4 Training Rooms. All full-committee, face-to-face sessions are open to employees.

-- Your Bargaining Committee

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