30 Compensation and Working Conditions Summer 1999

1998 Work

Stoppages

Work Stoppages

All measures of work stoppage activity rose in

1998, although they were low by historical

standards.

FEHMIDA SLEEMI

Fehmida Sleemi is an economist in the Division of Compensation Data Analysis and Planning, Bureau of Labor Statistics.

Telephone: (202) 606-6282

E-mail: Sleemi_F@bls.gov

All measures of major work stoppage1 activity rose in 1998,

although they were low by historical standards. (See table

1 and charts 1-3.) The 34 major stoppages, that is, those

involving 1,000 workers or more, beginning in the year

kept 387,000 workers off their jobs and accounted for 5.1

million workdays of idleness. The year’s labor-management disputes resulted in a loss of 2 days out of every 10,000

available workdays. Comparable figures for 1997 were 29

stoppages, 339,000 workers idled, 4.5 million workdays of

idleness, and a loss of 1 out of every 10,000 available workdays.

Sectors and industries affected

Of the 34 major work stoppages beginning in 1998, 30

were in the private sector, and the remainder occurred in

State and local government:

 Number of—

 Stoppages Workers Days idle

 Total ............................... 34 386,800 5,115,700

Private ............................... 30 376,600 4,972,700

Public ................................ 4 10,200 143,000

In the private sector, 15 stoppages each occurred in manufacturing and nonmanufacturing industries. In manufacturing, 7 of the 15 stoppages were in 2 industries—industrial and commercial machinery, and transportation

equipment manufacturing. In nonmanufacturing, 12 of the

15 stoppages occurred in the construction, broadcasting and

telecommunications, and health care services industries.

Industries that experienced the most days of idleness

during the year were:

• Transportation equipment manufacturing (3.5 million

days)

• Broadcasting and telecommunications (690,000 days)

• Industrial and commercial machinery (65,000 days)

• Construction (36,000 days)

Significant disputes

Over three-fourths of the year’s work stoppage idleness (3.9

million days) stemmed from three disputes. The first was

between the General Motors Corporation and the United

Automobile Workers (3.3 million days of idleness); the second involved the US West Corporation and the Communications Workers of America (340,000 days of idleness); and

the third was between Northwest Airlines and the Air Line

Pilots Association (215,000 days of idleness).

General Motors and United Automobile Workers. A smallscale strike at General Motors’ (GM) aging metal-stamping plant in Flint, MI quickly turned into a mammoth shutdown of nearly all of GM’s North American operations.

On June 5, 1998, 3,400 members of Local 659 of the United

Automobile Workers (UAW) walked off their jobs at GM’s

Flint metal-stamping plant after an impasse was reached

over issues relating to health and safety, production standards, and subcontracting. On June 11, 1998, 5,800 mem-
 Compensation and Working Conditions Summer 1999 31

1998 Work Stoppages

0

500

1,000

1,500

2,000

2,500

3,000

1951 1956 1961 1966 1971 1976 1981 1986 1991 1996

Year

0

100

200

300

400

500

1951 1956 1961 1966 1971 1976 1981 1986 1991 1996

Year

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1951 1956 1961 1966 1971 1976 1981 1986 1991 1996

CHART 1. Number of major work stoppages, 1951-98

Number

CHART 2. Workers involved in major work stoppages, 1951-98

Workers inolved

(thousands)

Days of idleness

(thousands)

CHART 3. Days of idleness resulting from major work stoppages, 1951-98

Year

Year

Year
32 Compensation and Working Conditions Summer 1999

bers of Local 651 at a cross-town Delphi parts plant walked

off their jobs over somewhat similar issues. The metalstamping plant makes fenders, hoods, and doors for many

GM model cars, and the Delphi plant makes a variety of

electronic components and auto parts such as spark plugs

and filters.

Shortage of these parts forced the company to halt most

of its operations within a few weeks. By June 24, 1998, 26

of 29 assembly plants and over 100 parts plants were affected by these 2 local strikes. This stoppage eventually

idled approximately 152,000 workers in the United States

and over 200,000 throughout North America.

On and off talks between parties pushed the stoppage

beyond a previously scheduled 2-week shutdown (from June

29 to July 12). The seriousness of the situation, and its

profound economic effect, prompted the involvement of

senior officials from GM and the UAW. After 3 days of

marathon contract talks, negotiators reached a tentative

settlement on July 28, 1998. The rank-and-file approved

the settlement on the next day.

Terms of Local 659’s agreement provided for settlement

of unresolved grievances over subcontracting, safety and

health issues, and “general” issues. The contract called for

a commitment from GM to invest an additional $180 million in the Flint metal-stamping plant, higher production

targets for engine cradles, and the return of the stamping

dies that were removed during the strike. (The company

had returned the dies on July 26.)

Terms of Local 651’s contract prohibit GM from selling

the parts plant to another company through January 1, 2000,

“provided the parties continue to work together to fix all

unprofitable product lines.” The contract also provides job

security for “all jobs” for the term of the 1996 national agreement, which expires September 14, 1999. In addition, it

bars GM from transferring production of oxygen sensors,

fuel systems, air meters, and other parts to other plants

through the effective date of the subsequent national 1999

master agreement.

US West and Communications Workers of America. After reaching an impasse in negotiations with US West, some

34,000 operators, technicians, and customer service representatives represented by the Communications Workers of

America went on strike on August 16. The job action, which

affected US West’s operations in 13 States, resulted from

disagreement over three unresolved issues—proposals to

(1) implement a new performance-based pay plan, (2) cut

the amount of mandatory overtime, and (3) change employees’ health care options. This was the first strike at the

company since it was spun off from AT&T in 1984.

When the strike began, a Federal mediator assisting in

the negotiations recessed contract talks to allow the parties

to regain their composure and reevaluate the proposals that

were already on the table. During the 3-day recess, both

parties filed unfair labor practice complaints against each

other with the National Labor Relations Board. Face-toface negotiations resumed on August 19, and were recessed

on August 20. On August 21, the mediator met separately

with the parties in an effort to find common ground. On

August 23, the Federal mediator ordered the negotiators

back to the bargaining table, and a week later, the parties

reached agreement on a new 3-year contract, ending the

15-day walkout.

Under terms of the settlement, the union agreed to a version of the company’s pay-for-performance plan in exchange

for reduced mandatory overtime and retention of current

health insurance options. The pay-for-performance plan is

voluntary and covers employees who install and repair parts

of US West’s network. Workers who opt for the plan forgo

annual wage increases in exchange for an annual bonus of

up to 20 percent of their base pay. The company had originally proposed that the pay program be voluntary for about

7,100 current workers and mandatory for new network technicians. Mandatory overtime would be cut to 16 hours per

week effective January 1, 1999, and to 8 hours per week

effective January 1, 2001. Employees retained their current health insurance options, whereby the company pays

100 percent of premiums for selected insurance companies.

US West had proposed to pay 100 percent of the premiums

for only one insurer and would have required employees to

pay a portion of premiums if they enrolled under other health

plans. Other provisions included a $500 signing bonus,

plus wage increases of 10.9 percent and pension increases

of 21 percent over the term of the agreement.

Northwest Airlines and Airline Pilots Association. Some

6,200 pilots represented by the Air Line Pilots Association

(ALPA) struck Northwest Airlines on August 29, following almost 2 years of negotiations. The major points at

issue in these contract talks involved proposals dealing with

wages and job security. The pilots sought a 15-percent wage

increase over 3 years, and the carrier offered about a 9-

percent boost over 4 years. The pilots also wanted to eliminate the two-tiered wage system known as the “B-scale,”

whereby newly hired pilots received lower pay than veteran

pilots at the carrier.

In addition, the pilots sought job protection arrangements. They wanted to restrict Northwest’s ability to

outsource work (that is, shift more flights to its regional

carriers) by linking the growth of regional jets to the growth

of Northwest’s fleet of narrowbody jets. The pilots also

sought job protections in regard to Northwest’s proposed

alliance with Continental Airlines (so-called “code-sharing”).

Although Federal mediators conducted separate meetings with the parties on September 5 and 6, no face-to-face

bargaining occurred until September 8. A breakthrough in

negotiations occurred on September 9, after the Federal

mediator suggested using stock options and profit sharing

as part of a compensation package. ALPA then modified

its pay proposals, and the carrier responded with its own

new offer. A tentative settlement was reached on Septem-
 Compensation and Working Conditions Summer 1999 33

1998 Work Stoppages

ber 10, and was ratified by the union’s Master Executive

Council on the same day.

The 4-year contract includes several job security provisions, including job protections in Northwest’s proposed

code-share alliance with Continental, furlough protection

for current pilots, and an agreement to link regional jet

growth to Northwest’s narrowbody jet fleet net growth. The

compensation package calls for 3-percent annual wage increases, an immediate lump-sum payment equal to 3.5 percent of an employee’s earnings, 2.5 million in stock options over the term of the agreement, elimination of the

B-scale over 3 years, and a profit-sharing plan that would

kick in after Northwest’s profit margins exceed 6 percent,

with payments to employees capped at 5 percent of their

earnings. Other important terms bar Northwest from canceling scheduled pilot vacations, and eliminate the carrier

practice of requiring pilots to be dual qualified, that is, requiring them to fly aircraft other than those they are most

currently trained on.

Large work stoppages

Eight large stoppages, those idling 5,000 workers or more,

accounted for 82 percent of the days of idleness in 1998.

(See table 2.) These disputes kept 338,000 workers off their

jobs and accounted for 4.2 million days of idleness. The

following tabulation provides historical data on work stoppages involving 5,000 or more workers for the period 1990-

98.

 Number of—

1990 ............................... 13 147 3,183

1991 ............................... 8 337 1,246

1992 ............................... 6 310 1,321

1993 ............................... 11 141 2,736

1994 ............................... 12 254 3,566

1995 ............................... 9 146 2,055

1996 ............................... 9 215 3,144

1997 ............................... 11 298 3,014

1998 ............................... 8 338 4,174

The previously mentioned dispute between General

Motors Corporation and the United Automobile Workers

dominated the labor dispute scene in 1998. The only other

large stoppage was between Bell Atlantic Corporation and

the Communications Workers of America. After negotiators failed to reach a settlement to replace their expired 3-

year contract, some 73,000 workers struck Bell Atlantic at

12:01 AM on August 9. Bell Atlantic, headquartered in

New York, NY, provides telephone service, wireless communications, cable and digital television service, and

Internet and data services to about 27 million customers in

13 States from Maine to Virginia, plus the District of Columbia.

According to press reports, the major issue in dispute

was job security—whether union or nonunion workers

would get future jobs in the company’s fast-expanding high

tech telecommunications work, and whether the company’s

subsidiaries could continue to use nonunion workers to do

work normally performed by union workers. By the time

of the strike, negotiators had already reached agreement on

two other key issues—wages and pensions.

While union members walked the picket lines and managers worked 12-hour days to keep Bell Atlantic functioning, negotiators worked non-stop for 54 hours, and hammered out a settlement on August 11. Under terms of the

2-year contract, the union secured the right to perform all

data network integration, digital subscriber line services,

Internet and video services, alarm monitoring, sales and

maintenance of bundled services, and long distance work.

It also won the right to perform customer work that had

been done at a nonunion Bell Atlantic Plus center in Hampton, VA. In addition, the agreement extended previous guarantees against layoffs, downgrades, or involuntary transfers; and provided wage increases of 3.8 percent in the first

year of the agreement and 4 percent in the second year,

plus pension increases ranging from 11 to 20 percent.

Duration of work stoppages

The average length of work stoppages beginning in 1998

was about 26 days. Disputes were concentrated in the 7-14

day and 15-29 day ranges. (See chart 4.) About 56 percent

of the stoppages lasted for 2 weeks or less, and 79 percent

concluded in less than 30 days. Twelve percent extended

for 60 or more days.

The longest stoppage beginning in the year was at

Peterbilt Motors Company, where 1,200 workers represented by the United Automobile Workers were out for

206 days. The stoppage started on May 3, 1998, after

members of Local 1832 rejected the company’s final offer. The major issues in dispute dealt with proposals

concerning the company’s payment for health care benefits for current employees and retirees, and the number

of union stewards.

On September 10, 1998, the union made an unconditional offer to return to work, but the offer was rejected by

Workers

(thousands) Stoppages Days idle(thousands)

CHART 4. Duration of work stoppages beginning in 1998

1-day

12%

2-3 days

12%

4-6 days

9%

7-14 days

23%

15-29 days

23%

30-59 days

9%

60 days and over

12%

Year
34 Compensation and Working Conditions Summer 1999

the company on grounds that returning to work without a

binding contract was not in the best interest of employees.

The company then locked out the striking workers. There

were some brief bargaining sessions in late September, which

helped parties to identify the key issues in dispute. On November 23, 1998, negotiators reached a settlement after a 24-

hour bargaining session, which was the first lengthy contract

talk since the lockout began on September 10. On November

24, 1998, striking workers approved a 44-month agreement,

which ended the 7-month stoppage.

1

 Major work stoppages are those involving 1,000 workers or more and

lasting a full shift or longer, and include worker-initiated strikes, as well as

lockouts by employers. A strike is defined as a temporary stoppage of work

by a group of workers (not necessarily members of a union) to express a grievance or enforce a demand. A lockout is a temporary withholding or denial of

employment by the employer during a labor dispute to enforce terms of employment upon a group of employees. Because of the complexity of disputes,

the Bureau does not attempt to distinguish between strikes and lockouts in its

statistics; both are included in the term “work stoppages.” For more information, see “Major Work Stoppages Technical Note,” in this issue of Compensation and Working Conditions, p. 69.
 Compensation and Working Conditions Summer 1999 35

1998 Work Stoppages

TABLE 1. Work stoppages involving 5,000 workers or more, 1951-98

Period

Number of stoppages1 Days idle1

Beginning

in

period

Workers

involved

(thousands)

Number

(thousands)

Percent of

estimated

working time2

1951 ................................................ 415 1,462 15,070 0.12

1952 ................................................ 470 2,746 48,820 .38

1953 ................................................ 437 1,623 18,130 .14

1954 ................................................ 265 1,075 16,630 .13

1955 ................................................ 363 2,055 21,180 .16

1956 ................................................ 287 1,370 26,840 .20

1957 ................................................ 279 887 10,340 .07

1958 ................................................ 332 1,587 17,900 .13

1959 ................................................ 245 1,381 60,850 .43

1960 ................................................ 222 896 13,260 .09

1961 ................................................ 195 1,031 10,140 .07

1962 ................................................ 211 793 11,760 .08

1963 ................................................ 181 512 10,020 .07

1964 ................................................ 246 1,183 16,220 .11

1965 ................................................ 268 999 15,140 .10

1966 ................................................ 321 1,300 16,000 .10

1967 ................................................ 381 2,192 31,320 .18

1968 ................................................ 392 1,855 35,367 .20

1969 ................................................ 412 1,576 29,397 .16

1970 ................................................ 381 2,468 52,761 .29

1971 ................................................ 298 2,516 35,538 .19

1972 ................................................ 250 975 16,764 .09

1973 ................................................ 317 1,400 16,260 .08

1974 ................................................ 424 1,796 31,809 .16

1975 ................................................ 235 965 17,563 .09

1976 ................................................ 231 1,519 23,962 .12

1977 ................................................ 298 1,212 21,258 .10

1978 ................................................ 219 1,006 23,774 .11

1979 ................................................ 235 1,021 20,409 .09

1980 ................................................ 187 795 20,844 .09

1981 ................................................ 145 729 16,908 .07

1982 ................................................ 96 656 9,061 .04

1983 ................................................ 81 909 17,461 .08

1984 ................................................ 62 376 8,499 .04

1985 ................................................ 54 324 7,079 .03

1986 ................................................ 69 533 11,861 .05

1987 ................................................ 46 174 4,481 .02

1988 ................................................ 40 118 4,381 .02

1989 ................................................ 51 452 16,996 .07

1990 ................................................ 44 185 5,926 .02

1991 ................................................ 40 392 4,584 .02

1992 ................................................ 35 364 3,989 .01

1993 ................................................ 35 182 3,981 .01

1994 ................................................ 45 322 5,020 .02

1995 ................................................ 31 192 5,771 .02

1996 ................................................ 37 273 4,889 .02

1997 ................................................ 29 339 4,497 .01

1998 ................................................ 34 387 5,116 .02

1 The number of stoppages and workers relate to all

stoppages that began in the year. Days idle includes all

stoppages in effect. Workers are counted more than once

if they are involved in more than one stoppage during the

year. 2 Agricultural and government employees are included

in the calculation of estimated working time; private

households, forestry, and fishery employees are excluded.
36 Compensation and Working Conditions Summer 1999

TABLE 2. Work stoppages involving 5,000 workers or more, beginning in 1998

Organization, location, and union

Beginning

date

Ending

date

Number of

workers1

Estimated days of

 idleness in 19981

Kaiser Permanente

Northern California

California Nurses Association ........................... 1/28/98 1/29/98 8,000 16,000

Kaiser Permanente

Northern California

California Nurses Association ........................... 2/24/98 2/24/98 7,100 7,100

General Motors Corporation2

Interstate

Automobile Workers ......................................... 6/5/98 7/29/98 152,200 3,313,000

Bell Atlantic Corporation

Interstate

Communications Workers ................................ 8/9/98 8/11/98 73,000 146,000

Consolidated Rail Company

Interstate

Brotherhood of Maintenance

 of Way Employees ......................................... 8/14/98 8/14/98 23,500 23,500

US West Corporation

Interstate

Communications Workers ................................ 8/16/98 8/30/98 34,000 340,000

Southern New England

Telecommunications Company

Interstate

Communications Workers ................................ 8/23/98 9/17/98 6,300 113,400

Northwest Airlines

Interstate

Air Line Pilots Association ................................ 8/29/98 9/10/98 33,700 214,600

1 The number of workers involved is rounded to the nearest

100.

2 Excludes workers in Canada and Mexico.