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Proposed Agreement between the USW & partner unions with ... › FINALFINALFINALNewPage Summ… ·...

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Page 1: Proposed Agreement between the USW & partner unions with ... › FINALFINALFINALNewPage Summ… · Proposed Agreement between the USW & partner unions with NewPage - 3 - Master Agreement
Page 2: Proposed Agreement between the USW & partner unions with ... › FINALFINALFINALNewPage Summ… · Proposed Agreement between the USW & partner unions with NewPage - 3 - Master Agreement

Proposed Agreement between the USW & partner unions with NewPage

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Introduction Sisters and Brothers: When NewPage filed for Chapter 11 Bankruptcy last September, we knew that we would be spending long and intense days at the bargaining table. The bankruptcy code allows employers to reopen agreements, and even permits a judge to throw out or “reject” our agreements if they can be shown as a significant financial burden for an employer emerging from bankruptcy. Rather than allow NewPage to pick off locals site-by-site using the threat of court intervention, all the unions, in a show of extraordinary solidarity, met in Milwaukee in April, at a single table, with a single voice and purpose. The USW, along with the IAM, UA, IBEW, IBT and OPEIU, met with NewPage to discuss possible modifications to the labor agreements that would allow the company – and more importantly – our combined memberships to emerge from bankruptcy with more stability and security than ever before. As expected, NewPage identified a number of financial issues (pensions and other retiree insurance benefits as well as wages and health insurance for current employees) where management claimed a need for flexibility. From the beginning, we made it clear that while we were willing to address real issues related to the bankruptcy, we would not allow NewPage to use it as an excuse to drive down standards in the paper sector. We also made it clear that we were not the ones who put the company in this position, and while we have a legal obligation to enter discussions, we would not allow NewPage to use threats of court action to take advantage of us. When necessary, we reminded management that if the court vacated our agreements, we would no longer be bound by no-strike language. While bargaining was difficult and sometimes contentious, it allowed us to address a number of issues that could have created problems with the future owners and the new company that emerges from the dust of the bankruptcy proceedings. We laid out the following key priorities in bargaining:

Wage increases previously granted would not be undone by the bankruptcy.

We would not do this twice. No deal will go into effect unless we know that it will survive the bankruptcy and give us a period of stability with the new company.

While we will look at alternatives on pension and insurance, they would have to be alternatives that provide an honorable retirement, provide access to quality, affordable health care without merely shifting costs and meet industry standards.

The agreement must address union security issues important to the future.

We would not tolerate unnecessary “piling on” local managers’ wish lists just because this was a bankruptcy. The company would have to refrain from any local bargaining issues for five years.

By standing together, despite the implied threat of court intervention and despite the diversity of our 50-person committee with leadership representatives from a dozen local unions belonging to six different international unions, we met our objectives.

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Details of the Agreement The following pages provide detailed explanations about the terms of the new agreements and specifics about any changes. While the leadership of the USW and the other unions who participated in negotiations have overwhelmingly endorsed this tentative agreement, as always, the ultimate decision rests with the membership. Consider this:

The deal will prevent NewPage from seeking relief from the bankruptcy court for additional changes to our agreements.

Because we do not know yet who the new owners will be, the agreements gives us a strong measure of long-term strength and security by setting a new process for bargaining key economic issues now and into the future.

The insurance and pension models are both models that the union developed within the industry to limit cost shifting, and while they may be different, they will not hurt overall industry standards.

The tentative agreement maintains and even increases pay, keeping the paper sector the last of the great-paying manufacturing jobs in America.

We know you will carefully consider this offer. Not only does it position all of us for success, it establishes a strong platform for our members to have more say in their own futures as well as the future of the company.

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Master Agreement Structure Traditionally, all NewPage locals have bargained economics site-by-site, even though the company has always bargained a national pattern. The agreement we are voting on is a Master Agreement. It does not replace your Local Agreements, but it sets corporate-wide economic terms for things like wages, sickness and accident benefits, insurance and pensions and holds the framework for key security issues like successorship, high-level safety understandings and the like. The term of this Master Agreement is four years from the ratification. This Master Agreement also contains language ensuring that the courts allow these agreements to remain in place when the company emerges with a new owner. Because the agreements focus on common issues that affect all facilities, the process for ratifying relies on “one person/one vote,” pooled across all facilities. This means that all USW locals will pool their votes and if more than 50% of those voting support the offer, it will be implemented at all facilities. If the vote fails, NewPage will revert to setting a national pattern locally, using the bankruptcy as its lever. The trades and office workers have been invited to participate, and in fact were strong allies standing together as one during this process. But their unions have the right to establish their own ratification procedures. We will be using the same process that is used in all USW master agreements, which now cover much of the industry. The pooled process is used at IP Mills, IP Packaging, GP Mills, GP Box Plants, SSCC (before acquisition), Boise, Domtar, PCA Mills, PCA Converters, SCA, Wausau, AbitibiBowater (now Resolute) and Evergreen Packaging.

This process does not change local agreements, except for the issues identified here that affect all plants.

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Local Agreements; Table of Expirations While the parties agree to forgo mandatory local bargaining, they can agree to meet by mutual consent. However, no changes can be made to the local agreement unless the union agrees to such changes through a local bargaining process. The specific table of contract expirations should the new agreement be ratified is found below:

NewPage Labor Agreements Mill Union Expiration Date

Luke United Steelworkers Local 8-00676 12/1/2016

Luke (IBEW) Local 1653 12/1/2016

Escanaba (IBEW) Local 979 6/1/2017

Escanaba Teamsters, Local 486 6/1/2017

Escanaba United Steelworkers Local 2-21 6/1/2017

Wickliffe United Steelworkers Local 680 6/30/2017

Central WI United Steelworkers Local 2-94, Local 2-187, Local 2-116 3/31/2018

Central WI IAM Local 655 3/31/2018

Central WI (IBEW) Local 1147 3/31/2018

Central WI OPEIU Local 95 3/31/2018

Central WI United Association Plumbing/Fitters Local 434 3/31/2018

Rumford United Steelworkers Local 4-900 6/30/2018

Rumford (IBEW) Local 2144 6/30/2018

Wages During most bankruptcies, workers take a huge hit on wages. In this case we did not, even though employees at two of the mills rank among the highest in terms of hourly wages for their job classifications in the United States. The following wages will go into effect automatically upon the normal yearly anniversary date of the contract. Further as the *PPA* notes below, increases “Per Previous Agreements” will be implemented on the schedule found in previous contracts.

Wickliffe Luke Escanaba CW Rumford

2010

$2,500* at ratification

PPA* PPA* PPA* PPA*

2011 PPA* PPA* PPA* PPA*

2012 0% PPA* PPA* PPA*

2013 0% 1% PPA* PPA* PPA*

2014 1% 2% 0% PPA* PPA*

2015 2% 1.5% 1% 0% 0%

2016 1.5% Expires

12/1/2016 2% 1% 1%

2017 Expires

6/30/2017

Expires 6/1/2017

2% Expires

3/31/2018

2% Expires

6/30/2018

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Emergence Bonus During this bankruptcy we saw so-called retention bonuses granted to key people so they would not bail-out during the restructuring. While we understood that companies have difficulty both retaining and attracting new help during this kind of crisis, we also know that if not for the members of our unions showing up for work every day, the game is over. This is why we have asked NewPage to provide a $1,000 lump sum payment, less applicable withholdings, paid in the last pay period of March 2013.

Profit Sharing By the second anniversary of the effective date of this Master Agreement, the company and the USW international will meet to discuss the development and implementation of a new uniform profit sharing plan that would replace all other similar plans currently in effect (such as gain-sharing plans at certain sites). As currently contemplated, a uniform profit sharing plan would be based on the company achieving defined financial targets, such as Adjusted EBITDA, with distributions set at fixed dollar levels.

Pensions Historically, workers at NewPage have had plans referred to as defined benefit plans or DBs as they are known. Under certain circumstances, they were, and remain, the best delivery system for retirement income – but only under certain circumstances. The conditions that must exist for a DB to provide a decent enough benefit to retire depend on these factors:

1) Length of service. Traditionally, people started in manufacturing jobs when they were between 18 and 25 years old. This meant that they would likely obtain 37 to 44 years of service. With a multiplier of $50, that would mean a monthly pension of $1,850 to $2,200 without reductions. But now, companies are hiring more mature workers, many of whom have been displaced from other jobs. More often than not, they start at age 30 to 38, meaning that if they retire at the same age, their monthly pensions range from $1,200-$1,600.

2) The other condition that has to exist for DBs to provide a reasonable retirement is that you have to be with the same company or with a company that will assume the entire pension plan. However, we know from experience that companies are increasingly being traded, merged, sold and owned by short-term financial buyers that do not carry the pension forward. When that happens, workers’ pensions, while protected, become terminated and the value frozen. Worse occurs when a plant is shut down.

Because of these realities, the union has developed a model that defines specific financial contributions from the company and attempts to build a hedge against many of the issues cited above. Our model, which NewPage has agreed to adopt, sets a new standard for the industry and does the following:

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Grandfathers workers who have an age and service total equaling the number 75, or are 55 years old or greater, allowing them to continue to accrue service and previously bargained multiplier increases/intervals; and requires the Company to contribute 3% of the employee’s gross income into a 401k plan in lieu of future increases.

Freezes the benefit and service for workers as of December 31, 2012 who are less than 55 years old as or whose number is below 75 (non-grandfathered), except that previously bargained multiplier increases at previously bargained intervals will be maintained. These employees will continue to “earn” age and service for eligibility for early retirement purposes and vesting.

Creates a new company match for non-grandfathered members to a maximum of 4% employer

contribution if the employee contributes the maximum will contribute up to four percent (4%) of pay if

the employee contributes at least six percent (6%) of eligible pay to the Savings Plan. If the employee

contributes less than six percent (6%) of pay to the Savings Plan, the Company shall contribute at a rate

of $1.00 matched for every $1.00 contributed on the first two percent (2%) of pay and $0.50 matched

for every $1.00 contributed on the next four percent (4%) of pay.

Importantly, there is a direct company contribution in addition to the match that occurs regardless of how much a non-grandfathered employee contributes:

Age + Service Automatic Contribution (excluding company match)

Company Contribution (including 4% match)

Total with Employee Contribution

Less than 40 2.5% of pay 6.5% of pay 12.5% of pay

40 to 49 3.5% of pay 7.5% of pay 13.5% of pay

50 to 59 4.5% of pay 8.5% of pay 14.5% of pay

60 to 69 5.5% of pay 9.5% of pay 15.5% of pay

70 or more 6.5% of pay 10.5% of pay 16.5% of pay

Because the new plan does not have a disability retirement provision, NewPage also agreed to the following for non-grandfathered employees: The employer will provide a long-term disability plan for employees who qualify that pays 50% of an employee’s regular earnings (offset by certain other payments, such as social security). This guarantees that even if a worker becomes disabled, they will be able to collect half of their regular income, based on normal (non-overtime) work schedules.

Health Insurance The USW has long fought with all of industry about health care. We have been involved in decades of cost shifting. The most recent attempts by industry to shift costs involve high-deductible health care plans and something called “consumer-driven” plans. We rejected these efforts because of our concerns about cost shifting and also because these so called “consumer drive plans” often leave holes in important areas of coverage.

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In 2011, the union developed a plan tempered with realistic and affordable deductibles, premiums and prescription drug coverage. Along those lines, the USW reached an agreement with NewPage that meets our most important concerns. The proposed new health care plan (set forth in detail at the end of this Summary) would go into place on January 1, 2013 at all locations. The plan provides as follows:

First dollar coverage before employees pay any deductibles or prescription drug costs out of their own pockets.

The first dollar money is called an HRA and ranges from $500/$750/$1,000, depending on the coverage option you select.

Employees may choose coverage as follows: o For themselves only [Employee Only]: Effective deductible of $500 (Total deductible of $1,000

with $500 first paid by HRA and then $500 paid by employee) – see health care chart o Coverage for themselves and a spouse or children [Employee Plus Spouse or Child(ren)],

Effective deductible of $750 (Total deductible of $1,500 with $750 first paid by HRA and then $750 paid by employee) -- see health care chart

o Themselves and a spouse and dependent children [Employee Plus Family]: Effective deductible of $1,000 (Total deductible of $2,000 with $1,000 first paid through HRA and then $1,000 paid by employee) – see health care chart

Provides an opportunity to increase the HRA and thus reduce the deductible by $100-$600 per individual and $200-$800 for employee plus/family through participation in simple aspects of a wellness program.

Reduces premiums between $450 a year and up to $2,673 for those in enrolled in family coverage in PPO plans across the system (see Cost Comparison Grid at end of document). Note this does not include savings that will be available with moving from family coverage to employee plus spouse or employee plus child(ren) that may have been previously unavailable at specific sites.

Provides certain key drugs treating chronic conditions of diabetes, hypertension and high cholesterol that represent over 40% of all drugs costs at zero cost to employees.

Specialty drugs will be provided with $50 copay.

Other drugs will be provided at zero cost initially through the HRA, at employee cost while in the deductible phase and then at the following cost:

Retail – 30 day supply – generic 20% with $5 cap; formulary 20% with $50 cap and non-formulary 40% with $75 cap. Mail Order – 90 day supply – generic 20% with $12 cap; formulary 20% with $100 cap and non-formulary 40% with $150 cap.

Unused HRA money can be rolled over from year to year at an unlimited amount and can be used upon retirement for retiree health care premiums for the company plans.

A union and management health care committee is created under the Agreement to monitor the health care plan performance, and the USW has secured agreement that there will be no changes to the dental and vision programs in place for the life of this agreement. The Company will provide a premium subsidy in 2013 via employee premiums for 2013 that will be set substantially below what they would be under normal assumptions for the plan. The 2012 employee premiums are as follows:

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Employee Only $80 per month Employee Plus Child $145 per month Employee Plus Spouse $164 per month Employee Plus Family $230 per month

In 2014 the Company will provide an additional subsidy to employees over and above the 80/20 premium share as follows:

Employee Only $5 per month subsidy Employee Plus Child $10 per month subsidy Employee Plus Spouse $10 per month subsidy Employee Plus Family $20 per month subsidy

Life Insurance & ADD NewPage has agreed to standardize the life insurance benefit at $80,000 at all plants covered by this agreement. The $80,000 benefit is in effect doubled if a death is a result of an accident.

S&A Weekly sickness and accident benefits will be improved by $5 a week in each year of the extension. Previously agreed upon increases will also remain in effect and occur as scheduled.

Retiree Life Insurance In most facilities, employees have small life insurance policies or death benefits ranging from about $1,000 to $6,000. These policies are often targeted in bankruptcy. The company agreed to improve active employee Life/ADD plans, but eliminated the retiree plans at the end of the current contract (meaning this benefit will not carry forward into the extension, with the exception of the $1,000 benefit at Wickliffe because their current contract was just negotiated with the Master, so the benefit continues until the new contract expires).

Retiree Medical Insurance Retiree health care plans will be eliminated for active employees on 12/31/2017. While this is certainly not ideal, the fact is that the only plans that provided substantial benefits were not guaranteed by contract and might have otherwise been terminated unilaterally. This area will have to be bolstered in the future by the new 401k plan, and hopefully a profit sharing plan (similar to the one being trialed by this master agreement) which could further provide mechanism for people to fund health care for early retirees. By guaranteeing this coverage remains in place over the next 5½ years, however, we ensured that people nearing retirement would not be overly burdened with unanticipated costs.

Security Issues Different from past agreements, the unions involved in this agreement also came to an understanding on some overarching security issues that provide longer term protection for workers as the sector continues to face challenges and unfortunately some decline.

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Successorship Going into these discussions, not all sites had successorship agreements requiring recognition of the union and requiring the new owners to either honor our agreements or reach a new agreement with the union prior to becoming owners of the company. In the past, too often, contracts that did not contain this language resulted in new owners purchasing the assets of a company to fire and then rehire only those people it wanted to without regard to service, skills or past dedication. This agreement fixes that for all sites and enhances the language at sites that previously had it. The agreement will now condition any sale of any plant, or significant part thereof, upon the purchaser recognizing the USW as the bargaining agent and entering into a labor agreement acceptable to the union. This new commitment will give your union greater leverage in the event of any future sale.

Organizing Code of Conduct On the surface, many people will ask why this matters in our negotiations. The answer is two-fold. First, we think that it is hypocritical for a company to claim to have interest in a highly productive and mutually beneficial relationship with its unionized workforce and then viciously fight to interfere with that very same right, globally recognized as the foundation of free-association. Secondly, the world and the coated paper market are changing dramatically. We know that further consolidation will mean further reduction in capacity. This consolidation should not be based on decisions about whether a company can keep a union out. Instead, it should be based on productivity, quality, innovation and not some low-road work arrangement or scheme to avoid workers who believe that democracy is something that gets left at the punch clock. For us, neutrality and codes of conduct reveal what the relationship with an employer is truly built on.

Health and Safety Tragically a USW member is killed at work nearly once every week-and-a-half. Much more often, a worker sustains a life altering injury. Health and safety is too important to be left to some head office. Workers should own, drive, fuel and participate in programs that eliminate serious injuries and fatalities. Too often, when left their own devices, management is coerced into programs that focus only on behavior. Unfortunately “blame the worker” programs are now a billion dollar business across all industries. Unfortunately, the verdict of failure of these programs has been delivered. One major company that touts an extraordinarily low incident rate was shocked when its own internal study showed that after four decades of preaching about behavior and accountability while ignoring process safety and hazards, fatality and serious injury rates remained constant over four decades! Despite enormous expenditures, their efforts succeeded only in getting workers to quit reporting injuries. To NewPage’s credit, the company has been moving in a progressive direction on this issue in conjunction with the union for a few years already, and the parties, as a part of this master agreement, acknowledge their mutual commitment with language calling for joint efforts and innovation to make our workplaces safer and healthier.

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A Word from the Bargaining Committee Last September, just as the USW predicted, NewPage filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code. This bankruptcy was the culmination of a long and slow downward spiral that many thought was inevitable. During this period, the company eliminated more than 1.6 million tons of capacity. NewPage shuttered the Niagara Mill, the Kimberly Mill and the Whiting Mill, took machines down elsewhere and eventually sold the Port Hawksbury Mill. The price of this was the loss of well over 1,500 union members’ and salaried workers’ jobs at these plants. Most of those driving this train have been long severed from NewPage as well. During the same period, the USW was encouraging the company to get its balance sheet in order. We lobbied hard to protect an alternate fuel tax credit that NewPage used to lower prices (which have barely recovered three years later) instead of paying down its pension obligations. We were at the forefront of a trade case that NewPage, to its credit, stepped up to support. Through these efforts, we were at least successful in halting the flood of cheap, subsidized Chinese products into our markets. In desperation to avoid what was certainly an inevitable bankruptcy, NewPage’s sale of important assets has had a long term negative impact on the company’s ability to raise enough money to meet coupon payments for certain classes of debt. The result is that NewPage ultimately ran out of money to pay the bills and has had to develop a secured credit line to cover daily expenses like our wages, insurance, utilities and the raw materials we need to keep the mills running. Our efforts, which culminated with a long week of bargaining in Milwaukee and subsequent high level meetings with NewPage in Ohio, joined together workers from six different unions with a single purpose – to ensure that the workers, who are the only real long term stakeholders of the company, are treated fairly during this difficult bankruptcy; and as importantly, that the company is positioned to emerge with a healthy balance sheet and prepared to survive in a difficult market. The single factor that made this agreement possible was solidarity. There is no question that if one local attempted to do this alone, or if the problems were addressed site-by-site, the result would not have been the same. We believe this proposed new agreement will make us a rare example of workers who have emerged from bankruptcy with more security and established new standards for pensions and health care, while at the same time avoiding deep concessions. This deal does not just make sense; it moves us forward during a period of huge change in our industry and our company.

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Health Care Plan Effective January 1, 2013

Summary of Services HRA

In-Network Out-of-Network

Network Anthem Blue Cross Blue Shield

HRA (Health Reimbursement Account)

$500 Employee $750 Employee + Spouse or Employee + Child(ren)

$1,000 Employee + Family Plus Healthy Rewards

HRA dollars used first before moving into deductible

MyHealth Rewards

MyHealth Assessment – $100 for completion for employee and spouse

(Confidential and HIPAA protected)

Personal Health Coach - $100 for enrollment; $200 for completion

Applies to all family members

Tobacco Treatment and/or Healthy Weight Program - $200 for completion

Tobacco applies to participants age 18 or over Healthy Weight Program all family members

Annual Deductible $1,000/$1,500/$2,000 $1,500/$2,250/$3,000

(includes HRA contribution) (includes HRA contribution)

Effective Deductible (After HRA) $500/$750/$1,000 $1,000/$1,500/$2,000

Coinsurance Amount (max employee pays each year after the deductible)

$1,500/$2,250/$3,000 $3,000/$4,500/$6,000

Traditional Health Care (THC) (co-insurance after deductible) (Employee responsibility)

20% 40%

Out-of-Pocket (OOP) Maximum (max employee pays each year) (deductible + coinsurance)

$2,500/$3,750/$5,000 (includes prescription drug

costs and HRA contribution)

$4500/$6750/$9000 (includes prescription drug

costs and HRA contribution)

Effective OOP Maximum (After HRA) $2,000/$3,000/$4,000 $4,000/$6,000/$8,000

Lifetime Maximum Unlimited

Hospital Services Precertification required for certain services

Inpatient Care 80% after deductible 60% after the deductible

Emergency Room Employee pays 20%

coinsurance with $250 max 60% after the deductible

Outpatient Care

§ Medically necessary services and supplies 80% after deductible 60% after the deductible

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Health Care Plan Effective January 1, 2013

Summary of Services HRA

In-Network Out-of-Network Physician Services

§ Office Visit 80% after deductible 60% after the deductible

§ Diagnostic X-rays/lab procedures charged by doctor

80% after deductible 60% after the deductible

Preventive/Routine Care Coverage based on nationally recognized guidelines described in regulations issued by the Department of Health and Human

Services

Covered at 100% Covered up to 100% maximum allowable

amount

Prescription Drugs

§ Retail per prescription or refill

- Generic - Formulary

- Non Formulary

EE portion paid by HRA then EE pays after the

deductible: 20% for generic to $5 max

20% brand-name formulary to $50 max

40% brand name non formulary to $75 max

60% after deductible

§ Mail up to 3 month supply per prescription

- Generic - Formulary

- Non Formulary

EE portion paid by HRA then EE pays after the

deductible: 20% for generic to $12 max 20% brand-name formulary

to $100 max 40% brand name non

formulary to $150 max

60% after deductible

Value-based Healthcare - Company will cover the cost of prescriptions for participants in any of the designated chronic

conditions. For diabetics this includes supplies, etc.

List of medications are attached

Based on diagnosis of the following chronic

conditions: Diabetes, Hypertension,

High Cholesterol

Coverage requires: Participation in the plans condition care program;

and mandatory mail order

Specialty Drugs - $50 copay does not apply to

deductible

Rate sharing shall remain at 80% Company, 20% Union throughout the life of the agreement, unless less Union contribution is agreed to by the parties to address a specific situation. The health care plans agreed to between the Company and the Union shall remain in place for the life of each renewal agreement. This commitment exists despite any language in the summary plan descriptions or plan documents to the contrary. This shall not affect the right of the Company to make

administrative or carrier changes as long as the network remains substantially equivalent in the aggregate.

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Location Union Plan EEEE+

Spouse

EE+

Child

(ren)

Family EEEE+

Spouse

EE+

Child

(ren)

Family EEEE+

Spouse

EE+

Child

(ren)

Family

$80.00 $164.00 $145.00 $230.00

PPO I $144.03 $302.47 $273.67 $432.11 (64.03) (138.47) (128.67) (202.11) (768.36) (1,661.64) (1,544.04) (2,425.32)

PPO II $131.65 $276.46 $250.13 $394.94 (51.65) (112.46) (105.13) (164.94) (619.80) (1,349.52) (1,261.56) (1,979.28)

HRA $84.11 $176.84 $159.73 $252.34 (4.11) (12.65) (14.73) (22.34) (49.32) (151.80) (176.76) (268.08)

PPO I $104.81 $220.09 $199.14 $314.43 (24.81) (56.09) (54.14) (84.43) (297.72) (673.08) (649.68) (1,013.16)

PPO II $91.97 $193.13 $174.73 $275.89 (11.97) (29.13) (29.73) (45.89) (143.64) (349.56) (356.76) (550.68)

HRA $86.78 $183.97 $140.58 $260.35 (6.78) (19.97) 4.42 (30.35) (81.36) (239.64) 53.04 (364.20)

PPO I $83.99 $167.98 $151.18 $221.25 (3.99) (3.98) (6.18) 8.75 (47.88) (47.76) (74.16) 105.00

PPO II $76.76 $159.67 $143.70 $202.22 3.24 4.33 1.30 27.78 38.88 51.96 15.60 333.36

HRA $69.54 $139.08 $125.18 $183.19 10.46 24.92 19.82 46.81 125.52 299.04 237.84 561.72

PPO I $122.65 $262.03 $223.95 $288.33 (42.65) (98.03) (78.95) (58.33) (511.80) (1,176.36) (947.40) (699.96)

PPO II $113.77 $243.07 $207.75 $267.47 (33.77) (79.07) (62.75) (37.47) (405.24) (948.84) (753.00) (449.64)

HRA $116.52 $248.93 $212.75 $273.91 (36.52) (84.93) (67.75) (43.91) (438.24) (1,019.16) (813.00) (526.92)

HRA $112.71 $236.69 $214.15 $338.13 (32.71) (72.69) (69.15) (108.13) (392.52) (872.28) (829.80) (1,297.56)

HSA $100.83 $211.73 $206.37 $302.47 (20.83) (47.73) (61.37) (72.47) (249.96) (572.76) (736.44) (869.64)

WickliffeMi

llUSW 680 PPO $158.23 448.49 448.59 $448.59 (78.23) (284.59) (303.59) (218.59) (938.76) (3415.08) (3643.08) (2,623.08)

PPO $136.18 $280.03 359.23 $359.23 (56.18) (116.03) (214.23) (129.23) (674.16) (1,392.36) (2570.56) (1,550.76)

HRA $91.13 $175.02 233.71 $233.71 (11.13) (11.02) (88.71) (3.71) (133.56) (132.24) (1064.52) (44.52)

2013 Subsidized Employee Health Care Contributions For New Plan Compared to

2013 Projections for Current Plans

Current Plans -

2013 Monthly EE Rate Projections (1)

New Plan -

2013 Subsidized Rate Savings - Monthly

New Plan -

2013 Subsidized Rate Savings - Yearly

IBEW 979Escanaba

Escanaba USW 2-21

Escanaba IBT 486

Luke USW 676

Rumford IBEW 2144

Central

WisconsinAll

(1) 2013 Rates trended at 8.4%

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Proposed Agreement between the USW & partner unions with NewPage

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