After rejecting Malden Mills rejected “best and final” contract offer last week, the UNITE HERE workers union has voted to accept a new three year contract. The union, which represents roughly 70% of Maldens workforce, threatened to strike last week because members were not happy with the increased health care costs in Maldens offer (See BOSS_0449)
The new contract is designed to provide an increase in pay for each union employee while helping to stabilize spiraling health care costs. The contract provides for a 7% raise in wages and employer paid dental and disability insurance over the next three years, while still increasing the employee contribution to healthcare costs. The increase in health care contribution is consistent with that of Maldens non-union employees and is significantly below the national average.
Michael Spillane, Maldens CEO said, “Malden Mills is pleased to have come to an agreement with our UNITE HERE union members. The companys workforce is our greatest asset. It is through their hard work, dedication, and innovation that we are able to research, develop and manufacture the highest quality performance fabrics in the world. Our company has a long tradition of corporate responsibility to our employees. This contract maintains that tradition by respecting the needs of our workers while keeping us competitive in an increasingly global economy.”