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Summit County Labor News
Akron, Summit County, Ohio
What is this article about?
The Tobacco Workers International Union, AFL-CIO, negotiated new contracts with American Tobacco Company, Philip Morris, and Liggett & Myers, providing a 7c-per-hour wage increase effective November 2, 1959, and 6c more in November 1960 for 17,000 employees in Virginia, North Carolina, and Kentucky. Additional benefits include profit-sharing and improved sick pay for American Tobacco workers.
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Seventeen thousand employees of the American Tobacco Company, Philip Morris and Liggett & Myers have been awarded a 7c-an-hour wage rise, effective as of November 2, 1959, and an additional 6c-an-hour rise to go into effect in November 1960. The new contracts were negotiated by representatives of the companies and the Tobacco Workers International Union, AFL-CIO.
In addition to the wage increase, 7,000 employees of American Tobacco will benefit from a profit-sharing plan which had been sought by the Union for more than two years. This plan will be used primarily to supplement the fixed pensions for all regular employees.
A savings feature is also attached to the plan enabling workers to contribute up to ten per cent of their weekly earnings. Upon retirement, a worker may convert this money to an annuity. The profit-sharing and pension package is scheduled to go into effect on January 1, 1960.
Another important clause in the contract with American Tobacco covers sick benefits which have been increased from $30 per week for 20 weeks to $33 for 22 weeks. TWIU President John O'Hare said that the over-all contract with American would run well over 30 cents per hour for the two-year period.
The new contracts cover members of TWIU Locals in Virginia, North Carolina and Kentucky.
Philip Morris employees with 25 years of service will henceforth receive annual four-week paid vacations.
The tobacco industry major holdout against unionization continues to be the R. J. Reynolds Tobacco Co. The four cigarette brands manufactured by Reynolds—Camel, Winston, Salem and Cavalier—are high on the "Don't Buy" list of every thoughtful union member in the United States.
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Domestic News Details
Primary Location
Virginia, North Carolina, Kentucky
Event Date
November 2, 1959
Key Persons
Outcome
7c-an-hour wage rise effective november 2, 1959; additional 6c-an-hour rise in november 1960; profit-sharing plan for 7,000 american tobacco employees effective january 1, 1960; sick benefits increased to $33 per week for 22 weeks; four-week paid vacations for philip morris employees with 25 years service; overall contract over 30 cents per hour for two years
Event Details
Seventeen thousand employees awarded wage rises through new contracts negotiated by Tobacco Workers International Union with American Tobacco Company, Philip Morris, and Liggett & Myers. American Tobacco adds profit-sharing plan to supplement pensions, savings feature up to 10% of earnings convertible to annuity on retirement, and increased sick benefits. Contracts cover TWIU locals in Virginia, North Carolina, and Kentucky. R.J. Reynolds remains non-unionized.