Message from Honeywell Regarding

South Bend Negotiations

November 18, 2016

Dear Colleague;
We have been leading Honeywells Master and South Bend Local negotiation teams since bargaining began in April. After
working very closely with your union representatives, we were extremely disappointed Local 9 rejected the companys
latest comprehensive offer. We believe this is an appropriate time to review where we are and what it means going
forward.
A union representative told media that if we really wanted you back at work, the company could have come up with
more. We want to make this as clear as possible: Honeywell does want you back on the job. We worked hard to provide
the union with our best offer and it will not get richer.
We offered caps on healthcare premium increases, as well as limits on deductible and out-of-pocket increases. We also
committed to contribute to employees Health Savings Accounts (HSA) annually for three years, which would greatly offset
deductibles. Since our proposal was rejected, these specific caps and the additional Honeywell HSA funding are no longer
part of the companys overall offer.
We did propose changes to overtime, even accepting the unions proposal to undertake responsibility for how overtime is
offered to employees. We would pay time-and-a-half for all hours actually worked over 40, but also pay a higher doubletime premium should an employee work seven consecutive days. We included premium rates for holidays in addition to
holiday pay.
Our proposal offers more vacation days in lieu of Paid Absence Allowance and greater flexibility to use that vacation. We
would also pay out a last year of PAA to employees. The offer included protections for employees who were repeatedly
bumped from one shift to another so they would have stability.
The company offer does freeze the legacy pension, but also preserves early retirement options that most employees in
that plan can still grow into.
Our offer is fair, reasonable and consistent with what other U.S. unions within Honeywell have already approved, including
another UAW local in Michigan and your colleagues in Green Island.
At this point, there are no further negotiation sessions scheduled. We know these are difficult decisions, but your
opportunity to return to work depends on a ratified agreement.

Sincerely,

Allen R. Clarke
Vice President, Labor and Employee Relations, Aerospace

Rebecca Blucher
Director, Labor and Employee Relations, Aerospace