KONE SETTLEMENT AGREEMENT
REGARDING BEDPLATE ARBITRATION COMPLIANCE ISSUES
Dear Brothers and Sisters:
We have recently reached an agreement with KONE about bedplate
compliance issues arising out of the September 28, 2000 arbitration
award. Because of the importance of notifying the membership,
the agreement is being displayed here.
Fraternally,
Dana Brigham
KONE and the IUEC agree as follows:
1. Barring circumstances not presently foreseen, by July 1,
2001, KONE will implement a new MX machine design, which will
be in full compliance with the Award, to be implemented on all
MX machine projects engineered after July 1, 2001. The MR machine
will not be redesigned to comply with the Award. Instead, barring
circumstances not presently foreseen, KONE intends to phase
out its manufacture and shipping of the MR machine and to terminate
shipments of the MR machine shortly after the termination of
the current Standard Agreement but at the latest by December
31, 2003. If bookings of the MR machine subsequent to January
1, 2002 exceed 10% of all KONE traction machines sold, then
the number of Team Hours required to be paid for each installation
thereafter shall be increased from four, as provided for in
paragraph 3 below, to six. In the event unforeseen circumstances
occur which affect any of these dates, KONE will promptly notify
the IUEC and appropriate adjustments to this settlement will
be made.
2. Except as indicated in paragraph 3 below, KONE will pay
in settlement of all claims and back pay (wages and fringe benefits,
including Pension, Health Benefits, Education, Work Preservation
and Vacation) for non-complying installations before the date
of the Award to sum of $200,000 to the National Elevator Industry
Health Benefit Plan. Said payment will be made not later than
10 days after the date on which this letter agreement is executed.
3. For each and every installation of MR and MX machines, KONE
will pay as compensation for hours lost 4 team hours, including
wages at the applicable local union wage rate and fringe contributions
(Pension, Health Benefits, Education, Work Preservation and
Vacation). Said payments will be made to the National Elevator
Industry 401(k) Retirement Fund for all installations made since
the date of the Award completed as of the date this letter is
executed by the parties; thereafter, said payments are to be
made to the first crew working on the job in question and the
applicable benefit fund.
4. KONE will provide on a monthly basis a list of all ongoing
MR and MX installations to IUEC Assistant to the General President
James H. Chapman, Jr. beginning May 1, 2001. Beginning January
1, 2002, KONE will also provide on a monthly basis a list of
all traction installations booked (sold), to enable the Union
to monitor compliance with the 10% threshold referred to in
paragraph 1.
KONE MR Machine
Click
to Enlarge
