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701 union pension fund status to be discussed

April 27, 2012
Attorneys of Franczek Radelet P.C., the CATA’s labor relations counsel, will review how dealers should administer the contracts of employees represented by Automobile Mechanics Local No. 701, in light of the union’s pension fund status.
 
The review, 9:30 a.m.-12 p.m. May 8, follows the fund’s change from “endangered status” in 2011 to “critical status” in 2012. Dealers who want to attend must register in advance with the firm. Call Mary Casto at (312) 786-6151.
 
The immediate implications of this change for dealers are that:
 
• Contribution surcharges will be required on pension fund contributions for work weeks beginning in June 2012 that are reported and paid in July; and
 
• Dealers who have the Standard Automotive Agreement will not be required to pay a portion of the wage increase that was to go into effect on August 1, 2012.
 
Dealers effectively will be protected from the financial impact of the contribution surcharges. Nevertheless, it is important that dealers administer the provisions correctly to achieve that protection.
 
Discussion will focus on what is being done to address the pension funding and what happens next; how to report contribution surcharges and when they are paid; and from which job classes dealers will realize wage savings, and how long those savings will last.
 
 

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