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Las Vegas Medco workers ratify new three-year contract

Thursday, May 25, 2006

(International Labor Communications Association)

FOR IMMEDIATE RELEASE

 May 24, 2006

 Contact: Lynne Baker, USW, (615) 831-6782, (cell) 615/828-6169

 

Las Vegas Medco workers ratify new three-year contract

Employees return to work after 49-day illegal lockout

 

Las Vegas—Local 675 members of the United Steelworkers union (USW) overwhelmingly ratified a new three-year contract with Medco Health Solutions, Inc. (NYSE:MHS) late Tuesday afternoon and are returning to their jobs after being illegally locked out for 49 days.

 

The ratification comes after approximately 580 pharmacy technicians and support staff were illegally locked out by Medco on April 5, 2006. Workers had refused to give up their right to bargain over benefits.

 

The new contract provides for a medical and dental plan that cannot be altered or changed during the life of the contract. Other benefits like life insurance, accidental dismemberment/disability insurance and the 401(k) plan are restored. Any changes in these other benefits have to be negotiated between the union and management.

 

Two top-level committees were created under the agreement. One will be co-chaired by USW International Vice President Fred Redmond and a representative of Medco. The other is an executive committee composed of USW International President Leo W. Gerard and Medco CEO David B. Snow, Jr.  Both committees will address such topics as attracting business for Medco, legislation affecting the pharmaceutical industry, productivity, quality of work life, and neutrality and card check recognition at all Medco facilities.

 

The three-year contract runs from Sept. 1, 2005 through Sept. 1, 2008. Workers will receive a lump sum of $2,100 upon ratification, an immediate wage increase of 3.5 percent, another 3.5 percent wage increase this September, and a final 3.5% in September 2007.  In 2007 and 2008, workers also will get  $850 lump sum bonuses.

 

“Medco’s illegal lockout of our members brought the labor movement together and that pressure helped us reach an agreement,” said USW International Vice President Fred Redmond. “We urge Medco to come to a fair agreement with the Columbus, Ohio, and Tampa, Fla., facilities.”

 

Negotiations have begun for approximately 800 members at Medco’s mail-order pharmacy in Columbus and for approximately 300 call center workers in Tampa. The Tampa contract expired on May 20, and the union and management have agreed to a 45-day contract extension. The Columbus contract will expire May 31.

 

The USW represents over 5,100 workers at Medco facilities in Las Vegas, Nev., Tampa, Fla., Willingboro, N.J., Columbus, Ohio, North Versailles, Pa., Fort Worth and Irving, Texas, and Liberty Lake (Spokane) Washington. For more information on Medco, visit the USW website: www.usw.org/rx

 

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