2016 GE APPLIANCES

APPLIANCE PARK CONTRACT SUMMARY

GE Appliances (GEA) has reached a tentative agreement with the IUE-CWA Local 83761,
offering a strong pay and benefits package, while improving our competitive position in a
challenging global appliance industry. The following information provides a summary of the
key elements of the proposed four-year agreement, which is subject to member ratification.
Value of
Compensation
Package:

IMPROVED COMPENSATION AND BASE WAGES

MAINTAINED FOR CURRENT EMPLOYEES

$5,500

GE APPLIANCES OFFERS COMPENSATION ABOVE INDUSTRY AVERAGE.

A VOTE TO ACCEPT THIS CONTRACT RESULTS IN THE FOLLOWING PAYMENTS:

$2,500

$1,500

Accelerated
Cash Payment
Paid January 27, 2017

$1,500

Accelerated
Cash Payment
Paid January 2018

Accelerated
Cash Payment
Paid January 2019

IMPROVED 401 (K ) SAVINGS PLAN

My Savings Plan (MSP), our 401(k) plan, gives you an easy
and affordable way to save for retirement. With a higher Company
matching contribution on the pay you save, this plan
is significantly better than the average industry 401(k) plan.

Get the Maximum Company Match Faster

(Assumes an Appliance Park employee earning $35,000 annually)

TODAY

GE Appliances provides additional income in the form of

automatic and matching contributions to give you a strong
foundation for retirement savings.

3%

4%

=
7%

COMPANY CONTRIBUTION
All employees receive a Company contribution equal
to 3% of pay, regardless of whether you have made
any additional contributions to the My Savings Plan.

$2,800
employee

$1,400
company

Company contributes

 NHANCED COMPANY MATCHING CONTRIBUTIONS

E
When you contribute, GE Appliances will match 100% on
the first 3% of pay you save and 50% on the next 2% of
pay you save (up from 50% on the first 8% of pay saved).

50% up to 8%

employee contribution

NEW

$1,750
employee

$1,400
company

Company matches

100% up to 3%
then

50% up to 2%
employee contribution

TOTAL FROM GE APPLIANCES

Employees can contribute

$1,050 LESS of their own money
and receive the

Automatic Enrollment for New Hires

New employees will be automatically enrolled in the MSP at a
6% personal contribution levelto encourage employees to
save for the future. You can opt out or change your contribution
at any time.

SAME COMPANY MATCH.

HEALTH BENEFITS: 2017 & 2018

HEALTH BENEFITS: 2019 & 2020

The Company is committed to providing affordable healthcare

for employees and their families. Todays plan delivers good,
comprehensive healthcare coverage.

Healthcare costs are uncertain and continue to rise. In order to

keep your payroll contributions affordable, plan design changes
may take effect in 2019 and 2020. However, union members will
retain the following commitments regardless of modifications to
plan options:

No change: Three Health Benefits options in 2017 and 2018.

No change: Company-funded Health Reimbursement
Accounts (HRA).

No change: Payroll contributions based on wage tiers

(if you make less, you pay less).

No change: HRA amounts by family size remain the same.

Two choices: Either a company-funded Health Reimbursement

Account (HRA) or a partially company-funded Health Savings
Account (HSA). Company contributions to these accounts help
offset medical expenses.

No change: Payroll contributions based on wage tiers

(if you make less, you pay less).
No change: Deductibles and coinsurance.
No change: Out-of-pocket (OOP) maximums.

Expanded HRA reimbursement options. Effective in 2019,

you can reimburse dental and vision expenses from your HRA
so you can have more flexibility over how to use those funds.

No change: Vision and Dental plans will remain the same.

In 2017 and 2018, employee contributions will increase
to keep pace with rising healthcare costs. See the table for
the 2017 rates. In 2018, the average increase is $18/week
but varies based on your pay, plan option and family size.

Annual out-of-pocket maximums (OOP) to protect against

catastrophic illnesses or accidents100% coverage in
network after OOP maximum.
No change: The Park Well Care Center will remain free to those
in the HRA option and at a low cost to those in the HSA option.

2017 HEALTH BENEFITS

WEEKLY CONTRIBUTIONS

CO-PAYS ARE BACK

Primary care co-pays, not subject to deductible: The
cost of primary care visits will no longer be subject to the
deductible if you have an HRA. Effective in 2019, you
will have only a co-pay of $35 whenever you visit your
primary care doctor (Internal Medicine, Family Practice
and Pediatrics). Primary care co-pays take effect after the
deductible if you have an HSA because of IRS regulations.

1 Person Weekly Contribution

Annual Pay

Option 1

Option 2

Option 3

<$25,000

$16.54

$6.92

$2.04

$25,000 - $37,499

$19.62

$10.00

$2.42

$37,500 - $49,999

$21.46

$14.73

$3.19

$50,000 - $74,999

$26.96

$20.23

$6.77

Expanded generic co-pays, not subject to deductible:

Effective in 2019, co-pays for the majority of generic medicines
($12 for a 30-day supply) will not be subject to the deductible
with an HRA. With an HSA, deductibles must first be met
before co-pays take effect.

2 Person Weekly Contribution

Annual Pay

Option 1

Option 2

Option 3

<$25,000

$33.08

$13.85

$4.56

$25,000 - $37,499

$39.21

$20.00

$5.31

$37,500 - $49,999

$42.88

$29.42

$6.35

$50,000 - $74,999

$53.92

$40.46

$13.54

PARK WELL CARE CENTER

Employees at Appliance Park can benefit greatly from easy-access,
convenient, high-quality healthcare by using the onsite Park
Well Care Center (PWCC). The PWCC maintains the same
high standards of privacy as any community doctors office and
is staffed and operated by employees of a third-party vendor,
Premise Health. Services include:

3 or More Weekly Contribution

Annual Pay

Option 1

Option 2

Option 3

$41.31

$17.27

$6.06

$25,000 - $37,499

$49.02

$24.98

$7.02

$37,500 - $49,999

$53.67

$36.85

$7.94

$50,000 - $74,999

$67.40

$50.58

$16.92

<$25,000

 cute Care
A
Cold/flu, earaches, etc.
Preventive Care
Physicals, vaccinations,
etc.

Note: These rates do not include the Tobacco Surcharge or Working Spouse Contribution.

Chronic Condition
Management
Diabetes, high blood
pressure, etc.
Full Lab Work & X-Rays

The PWCC is free to those who choose an HRA or is available

at a low cost for those who choose an HSA. For HSA holders,
the PWCC offers deep discounts below what you would pay
in the community. For example, blood work only costs $10, no
matter how many labs you have drawn, and X-rays are only $20.
2

COVERAGE SURCHARGES

OTHER IMPROVED BENEFITS

WORKING SPOUSE CONTRIBUTION

If your spouse is eligible for healthcare coverage from an
employer other than GE Appliances, but you choose to enroll him/
her only in a GEA plan, you will continue to pay a weekly surcharge
for coverage. The contribution amount is based on your annual pay.

IMPROVED MILITARY LEAVE

GE Appliances proudly supports its employees in the
National Guard and Reserves.

Annual Base Pay

Weekly Spousal Surcharge

2017 Rates

<$25,000

$0

$25,000 - $37,499

$15

$37,500 - $49,999

$25

$50,000 - $74,999

$40

Employees with at least one month of GEA service called

for training or active duty of less than 30 days will maintain
their current pay and benefits.
For active duty leaves of more than 30 days, employees
are eligible for a military pay differential for up to three
years that covers the difference between what they receive
from the military and their current GE Appliances salary.
Both programs allow for our employees to serve their country,
take care of their families and return back to work with the
peace of mind that their Company fully supports their efforts.

TOBACCO SURCHARGE
Tobacco use is a leading preventable cause of serious disease.
If you continue to make the healthy choice not to use tobacco,
the Company believes you should pay less for your coverage.
VP of Manufacturing, Bill Good, signs the Statement of Support for the National Guard and Reserves

IF YOU DO NOT USE TOBACCO YOU WILL SAVE

$650

FOR MEDICAL COVER AGE IN 2017.

SPECIAL WINDOW FOR OPTIONAL INSURANCES

If it is unreasonably difficult due to a health factor for you to quit using tobacco
(or if it is medically inadvisable for you to attempt to quit), a reasonable alternative
method will be made available to you in order to avoid this additional contribution.
Please contact the GE Appliances Pay & Benefits Center at 1-888-874-3919 for
more information.

PAYOUT
FOR
SICK &
PERSONAL
PAY

Payout for Sick & Personal Pay days

from 2016 will continue in 2017, but
the process has changed. Employees
with remaining balances will have those
balances paid out in 2017, unless the
employee takes action to opt in to have
his/her sick and personal balance
rolled over (up to a max of 240 hours).
The process to elect a rollover will be
communicated later this year.

OPTIONAL TERM LIFE INSURANCE &

OPTIONAL ACCIDENTAL DEATH &
DISMEMBERMENT INSURANCE (AD&D)
Beginning with the 2017 Annual Enrollment, employees may
elect to add spouse and/or child life and Accidental Death &
Dismemberment (AD&D) insurance without being required to
elect the same coverage for themselves. This means greater
flexibility for you to choose the insurance coverage that
makes the most sense for you and your family.
In Annual Enrollment 2018, there will be a special window
for employees to increase their optional life insurance
coverage for themselves or their spouse by one level
without a statement of health.

COMPREHENSIVE BENEFITS CONTINUE UNDER THE NEW CONTRACT

DENTAL

VISION

PAID TIME OFF

ADOPTION
ASSISTANCE

SHORT-TERM
DISABILITY

EMERGENCY &
FAMILY AID PLAN

LONG-TERM
DISABILITY

EMPLOYEE
ASSISTANCE
PROGRAM

INDIVIDUAL
DEVELOPMENT
PLAN (TUITION
REIMBURSEMENT
AT $6,000/YEAR)
3

SERVICE
ANNIVERSARIES
RECOGNITION

APPLIANCES
EMPLOYEE
DISCOUNT
JOB & INCOME
SECURITY

LIMITED, ONE-TIME CASH INCENTIVE

FOR ELIGIBLE EMPLOYEES

FREE FINANCIAL &

RETIREMENT PLANNING RESOURCES

GE Appliances is offering up to 450 employees at Appliance

Park a Voluntary Separation Incentive (VSI) to voluntarily leave
the Company by January 6, 2017.

GE Appliances has hired Fidelity Investments to help guide

you along the path toand throughretirement. No matter
where you are in life, Fidelity can provide guidance, tools
and services to help you save for the future on your terms.

ELIGIBILITY
To take advantage of the incentive, you must have been
hired at Appliance Park before October 1, 2005, in
Production/Non-Industrial Trades or before June 1, 2009,
in Skilled Trades.

Access to Fidelitys services is quick and easy.

Online: www.netbenefits.com
Netbenefits.com offers a variety of tools and resources that
provide insight and guidance to make planning for retirement
more manageable.

VALUE OF INCENTIVE PACKAGE

Eligible employees who choose to leave the Company will
receive a lump-sum VSI check for $20,000.

Mobile app: Download the free Netbenefits mobile app

from the App Store, Google Play or Windows Store.

APPLICATION PROCESS
To be considered for the program, eligible employees must
complete and sign a VSI application and acknowledgement
form, available from the employees HR office, no later than
noon on December 12, 2016.

Lump-sum
VSI check

Download the App to get instant access to balances,

investments and more.
Personal phone consultation: 1-800-603-4015
Representatives are available to help you enroll, discuss
savings and investment options and help you understand
how much you need to retire.

$20,000

Third-party trademarks and servicemarks appearing herein are the

property of their respective owners.

OTHER PAY PRACTICES

SHIFT DIFFERENTIAL
GE Appliances shift differential pay is up to six times higher
than our competitors. Beginning January 1, 2017, employees
will be paid a shift differential as follows:

NO BASE WAGE REDUCTIONS FOR

CURRENT EMPLOYEES
OVERTIME
GE Appliances overtime practice is above the local market
and appliance industry. Beginning January 1, 2017, overtime
will be paid after 40 hours of work in a single week.
An employee will be paid double time on the employees
Sunday, provided he/she works the preceding Saturday,
if offered. Employees will receive double time and
a half on holidays worked.

Employee Type

Shift Differential

Current Employees

$1.00/hour premium*

New Hires

$.50/hour premiumconsistent
with area manufacturers

RATE GUARANTEE

*Employees hired prior to January 1, 2012, earning

and/or eligible for a 10% shift differential at the time
of contract ratification, will retain their eligibility and/or
rate until April 1, 2020. After that date, they will
move to $1.00/hour shift differential.

STREAMLINING WORK PRACTICES

Having a flexible workforce that employs effective and simplified work practices is a key component of any successful business.
Many of Appliance Parks work practices and processes have not changed in yearscontributing to Appliance Parks unprofitability.
Updated work practices will help streamline our operations, so we can become more flexible in responding to change and customers
needs. Being nimble and faster will drive competitiveness and help secure jobs for the longer term.

JOB MOVEMENT

TEAM-BASED WORK CELLS

As we strive to be the best in manufacturing, stability in our

production operations is an essential goal. Outdated involuntary
job movement, or bumping, in our factories causes tremendous
issues... people on jobs they didnt want gaps in training
scrap and rework to name just a few.

Like many other contemporary manufacturers, GEA is moving

toward team-based work cells on primarily Level 1 and Level 2
jobs to improve versatility and productivity.With union leadership
support and positive employee feedback, programs that were
piloted in AP1 and AP2 will be expanded into similar areas across
the Park over time. Employees will learn several positions within
their cell and rotate through them daily.

As the result of a new contract, we will initiate several positive

changes around bumping and bidding that make good business
sense and are ultimately good for employees:

The advantages of employees being cross-trained across multiple

assembly processes include:

The vast majority of employees will be selecting their own

jobs through the bidding process, rather than being forced
into jobs via the bump process as it happens today.
For six months after the effective date of the contract,
employees can make lateral bids or bids to lower-level jobs
across the Park to find a home building. After that time,
there will be no lateral bids outside of your home building.
Going forward, successful bidders on Level 2 or above
positions will be frozen for 12 months. Employees on
Level 1 positions will remain frozen for six months.

Ability for employees to

help with training

Flexibility to better
cover absences

Ergonomic benefits

Product quality benefits

TOTAL PRODUCTIVE
MAINTENANCE (TPM)
Improving manufacturing
capabilities requires shared
responsibility between production
operators and Maintenance. The
Total Productive Maintenance
(TPM) process will continue at Appliance Park, engaging
operators in maintaining their own equipment, emphasizing
proactive and preventive maintenance for improved
production. The goal is to:

For purposes of permanent layoffs, Appliance Park seniority

remains the deciding factor.
Reducing the involuntary movement of people will create
stability and better control of our processes, which will help
our competitiveness.
RATE GUARANTEE

In line with the new bumping process, the Union has negotiated
24 months of rate guarantee for employees affected by a
bump. Additionally, after this 24-month period, employees
will not experience more than a two-level reduction in pay.
This protects an employees pay in a bump, while minimizing
movement within the buildings.

Increase uptime

Reduce cycle times and accidents

Eliminate equipment breakdowns

Achieving this goal is critical to safety, productivity, stability and

competitiveness as we strive to be world class. TPM shifts the
mindset and culture from my role/your role to a team-focused,
our responsibilities approach.

Employees affected by a bump in 2017 will receive a rate

guarantee through January 1, 2020, which exceeds the
24-month timeframe.

SUBCONTRACTING
At a facility the size and age of Appliance Park, there are ongoing needs for the improvement of the campus and operations.
While we expect that much of the work can be handled by our Maintenance team, there are times when work needed to be done is
not our core competency and can be done more effectively using outside contractors. In cases where there is no headcount impact,
notice will be given to Maintenance when there is subcontracting work. This process change will allow us to focus our in-house
Maintenance experts on driving equipment uptime and productivity.

FLEXIBLE WORKFORCE FOR NEW HIRES

Beginning April 1, 2017, there will be a new wage and benefit structure for new hire production employees at the Park. The goal is
to improve the Companys competitive position and introduce employees to the manufacturing pipeline.
Employee
Milestones

Action

Day 1

$12/hour plus paid holidays, onsite Employee Assistance Program and the Appliances Employee
Discount. IUE-CWA dues collected.

90 Days

Enrollment for Flex Workforce benefits: Healthcare, Dental, Vision and Flexible Spending Accounts.

6 Months

End of probationary period.

1 Year

Employees pay raised to $13/hour and begin 401(k) plancompany match only.

1 Year+

After a year, employees remain in the Flexible Workforce Pool until a regular position becomes
available.* When employees transition, their pay is increased to $14/hour and they receive all of
the regular GE Appliances employee benefits.

*Based on business needs, flexible workforce employees may move into a regular position earlier than one year.

GE Appliances, a Haier company, is planning

$90 MILLION

in future product-line investments at Appliance Park.

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