Roanoke Times Copyright (c) 1995, Landmark Communications, Inc. DATE: MONDAY, March 27, 1995 TAG: 9503270095 SECTION: VIRGINIA PAGE: C1 EDITION: METRO SOURCE: DATELINE: LENGTH: Medium
Covering the plant's 2,300 employees, the agreement provides for the first raises in five years, expands benefits, and blocks potential layoffs in the sewing department.
The contract was negotiated with assistance from the Amalgamated Clothing and Textile Workers, elected by a worker majority Aug. 18. Four votes to form a union local had failed since 1979.
"More money. That means maybe that fishing boat I've been wanting," said employee Tony Matherly, 39, of Axton.
Smiling employees streamed out of Martinsville Junior High School after the vote, reported as 1,237-0. About 1,600 of the plant's 2,300 workers are members of local 1994, but not all were there to vote.
Workers in a stuffy auditorium were asked to stand if they supported the contract, and when they did, "I saw the roof jump two inches," one employee said.
Effective April 3, the 89-page contract will govern pay, benefits and working conditions at the company's hometown plants and distribution center, but will not directly affect Tultex plants in other cities.
Executives of Tultex, which manufactures and distributes activewear and licensed sports apparel, could not be reached for comment Sunday.
Before the union vote in August, Tultex said it wouldn't allow workers to affiliate with an international union without a fight. The company was facing rough times: Falling sales since late 1993 had resulted in a $4.9 million quarterly loss and suspension of dividends in spring 1994, and a $3 million quarterly loss in the summer quarter as the organizing drive proceeded.
The company had trimmed pay and benefits, which added to workers' resolve to unionize. In the end, Tultex said it supported the right of workers to hold a secret-ballot union election. Workers voted 1,321-710 for union affiliation.
The company finished 1994 with a profit of $8.9 million, up from $5.9 million in 1993, and spoke optimistically of this year.
Contract negotiations stretched from September to Saturday morning.
Company President Charles W. Davies entered the talks at a critical juncture Friday to deliver a message, said Bruce Raynor, southern region director for the union. His message, Raynor said, was, ``The company is going to reach down deep in its coffers to make a fair settlement."
Workers will even get Gatorade to drink when the weather's hot, Raynor said.
"Morale was down to zero" from 1989 to 1991, said employee Pat Hammock.
Raynor said the company and its employees "have turned a new leaf."
The contract provides for raises of 5 percent this year and 4 percent per year for two more years. The average wage is $8.
Workers secured a Christmas bonus of 2 percent of annual wages for this year, 2.2 percent next year, and 2.4 percent in 1997.
The company will drop the dental care deductible, reduce the medical care deductible for single employees from $300 to $200 and freeze the employees' share of health insurance premiums for two years.
About 260 sewing department employees will not receive raises, but will get the bonuses and a guarantee that they can't be laid off for three years. Tultex had trimmed the department from 500 employees, and more cuts were feared.
Employees looking to retire will get an extra $5 per month per year of service atop what the old plan provided.
Employees will receive overtime after eight hours a day, instead of waiting until 40 hours are accumulated in a week, and are guaranteed overtime pay on holidays.
The contract, which Raynor said will cost the company ``millions," will pay dividends to Tultex, too. "By making people feel better about their jobs, they will do a better job,'' Raynor said. ``Tultex gets the goodwill of these workers."
by CNB