Kohler Co. Last, Best and Final Contract Offer


Please know that due to the extended negotiations, Kohler Co. was unable to provide a contract proposal directly to all of our associates and has posted this informative summary of the company's proposal here.

Kohler Co. has provided union leadership with our last, best and final offer for a new 3-year contract. This offer provides increased pay each year of the 3-year contract for all union associates; maintains local jobs and benefits that are well above the regions norm; and supports a wage structure for sustained job growth at this facility. We urge serious consideration and your acceptance of our offer when you vote on Sunday. Attached please find a copy of our last, best and final offer in its entirety.

 HEALTH CARE RATIFICATION BONUSES FOR ALL ASSOCIATES

  • If members vote to accept our offer on November 15, Tier A associates will receive a $1,200 bonus and Tier B associates will receive a $1,000 bonus. This can more than cover the increase in health care premiums in the 3 years of the agreement. 

TIER A WAGE INCREASES

  • Our contract offer provides Tier A associates with annual wage increases of 50 cents per hour in each of the 3 years of the contract. The Tier A average is projected to be $24.95 per hour at the start of the 3rd year of the agreement.
  • Based on Bureau of Labor Statistics 2015 wage survey, Kohler’s Tier A average hourly rate is approximately 86th percentile. This means that only 14% of the labor force in the local area earns more than what Kohler pays on average. Many long-tenured Kohler associates will continue to be among the highest wage-earners of area manufacturers.

TIER A BENEFITS IMPROVED

  • Our contract offer increases life insurance and accidental death and dismemberment benefits, increases short-term and long-term disability benefits and improves dental coverage.
  • An increase of $3 in the pension multiplier will be offered over the contract term, bringing it to $39.50 per year of service.

TIER B WAGE INCREASES

  • Tier B wages increase on average by more than 20% immediately with additional increases of 40 cents per hour in both the 2nd and 3rd years. Tier B associates also have the opportunity to advance and move into jobs that pay over $20 per hour.

TIER B BENEFITS IMPROVED

  • Our offer enhances the benefit package for Tier B associates by offering another medical plan in addition to the High Deductible Health Plan, which currently is the only plan option for Tier B associates.
  • Our contract offer includes shortened eligibility waiting periods for dental, vision and long-term disability coverage, an increase in life insurance and accidental death and dismemberment benefits, an increase in short-term and long-term disability benefits and improves dental coverage.

RETIREE MEDICAL

  • The existing Kohler-sponsored retiree medical plan will be replaced by a new arrangement which provides multiple plan options at various premium rates.
  • All active permanent associates will receive a 401(k) contribution of at least $1,500 to replace the Early Retiree DDB.
  • Active permanent associates 40 or older with at least 15 years of service on January 1, 2003 will also receive a contribution of up to $10,000 to a non-taxable retiree medical account to replace the Medicare Supplement DDB.

NEW HEALTH CARE OPTION AND WELLNESS INCENTIVES TO REDUCE MONTHLY CONTRIBUTIONS

  • A new lower cost HRA medical plan option will be offered to Tier A and Tier B associates. There will also be the opportunity to earn wellness credits and discounts to reduce monthly contributions. This may result in associates paying lower monthly contributions than they do currently.

COMMITTED TO CREATING PERMANENT POSITIONS

  • Our intention is to continue creating permanent jobs. Today, permanent headcount stands at 1,973 – an increase of 326, or nearly 20% – over the permanent headcount on January 1, 2013. This demonstrates the benefits of the structure that we put in place and the steady job growth that it facilitated.

Option to Work: If there is no contract in place on Monday, Nov. 16, you may continue reporting to work. You will be paid at your existing hourly rate and receive ongoing, current benefits.