TA 2026 v1 — Article-by-Article Changes

All Articles (31)

✅ Gains

❌ Concerns

⚖ Mixed

⚠ Unverified

🔄 Unchanged

Gains

Concerns

Mixed

Unverified in TA

✅ Gains & Improvements

💰

Article 23 — Wages: All Classifications Receive Year 1 Increases

GAIN

Classification	2021 Rate	2026 TA Year 1	Year 1 Change
New Hire Production	$17.42	$19.05	+$1.63 / +9.4%
Production	$21.50	$22.50	+$1.00 / +4.7%
Specialized	$22.75	$24.25	+$1.50 / +6.6%
Semi-Skilled	$24.25	$25.75	+$1.50 / +6.2%
Team Leader — Semi-Skilled	$24.75	$26.25	+$1.50 / +6.1%
Skilled Trades	$38.00	$41.75	+$3.75 / +9.9%
Part-Time (29 hrs max)	$21.00	$25.25	+$4.25 / +20.2%

Every classification receives a real raise in Year 1, with additional increases built in annually through 2029. These are genuine gains. See the Concern card below for why the size was the issue members voted against.

✍

Article 23 — $2,000 Signing Bonus

NEW

2021 Contract

No signing bonus existed

2026 TA

$2,000 paid upon ratification

One-time payment — real money upfront. Does not roll into future wages, overtime calculations, or pension base.

🏖

Article 16 — Vacation: New 20+ Year Bracket Added

GAIN

Seniority	2021 CBA	2026 TA
Less than 1 year	ESTA accrual only	ESTA accrual only
1–3 years	80 hrs	80 hrs
3–5 years	100 hrs	100 hrs
5–10 years	120 hrs	120 hrs
10–15 years	140 hrs	140 hrs
15–20 years	160 hrs	160 hrs
20+ years	160 hrs (no bracket)	180 hrs +20 hrs NEW

A new top tier was added for members with 20+ years. Everyone else stays exactly the same. Only employees with 20 or more years of seniority see a change.

👟

Article 12 — Safety Shoe Voucher: $100 → $150

GAIN

2021

$100 per year

2026 TA

$150 per year (+50%)

Small but real improvement. Safety footwear costs have risen since 2021.

🛡

Article 17 — Life Insurance & AD&D Improved

GAIN

2021

Life insurance reduced at age 65. AD&D = 50% of base wage.

2026 TA

Age-65 life ins. reduction eliminated. AD&D = 1× base wage — doubled.

Real improvement for all members. Especially meaningful for members at or near 65. Doubling the AD&D payout benefits everyone.

🏥

Article 11 — ESTA Sick Call Can't Cost You the 3rd Saturday

GAIN

💡 What is ESTA? Michigan's Earned Sick Time Act — a state law requiring employers to provide paid sick time. Under the 2026 TA, Nexteer front-loads 40 hours each January 1. It replaced the old VR (Restricted Vacation) system. ESTA time is paid at your regular wage rate.

2021 — Not explicit

After 2 consecutive Saturdays you can decline the 3rd — but only if you had no unexcused absence the week before. A plain sick call (not covered by VR) could be coded unexcused and strip that protection.

2026 TA — Explicit protection added

ESTA absences and any absence covered under Art. 11 Sec. 3 are explicitly NOT unexcused for the Saturday decline rule. Using paid ESTA sick time cannot strip your right to decline the 3rd Saturday.

The 2-of-3 rule itself didn't change — you could always decline the 3rd Saturday after working 2 consecutive. What changed is that ESTA use is now explicitly protected so it can't be used to disqualify you from that right. See the Concern card for the VR vs ESTA overtime pay tradeoff.

🦷

Article 17 — New Hire Dental & Vision: No More 36-Month Wait

GAIN — NEW HIRES

2021 Contract

New hires waited 36 months before dental and vision coverage began.

2026 TA

Dental and vision configured at the same time as medical — no separate wait.

Applies to employees hired after ratification. Removes a meaningful gap in coverage for newer members.

❌ Concerns

📉

Article 23 — Wage Increases Don't Recover Purchasing Power Lost Since 2021

CONCERN

Every classification gets a raise — listed as a Gain above. But according to U.S. Bureau of Labor Statistics official CPI data, cumulative inflation from 2021 to 2026 is 20.60%. Year 1 alone does not close that gap for any full-time classification. The full picture requires looking at all four years (2026–2029) together — and even then, whether wages fully recover lost purchasing power depends on each classification's cumulative increases across the life of the contract.

Classification	Year 1 Raise	Cumulative Inflation*	Gap
Production	+4.7%	20.6%	−15.9 pts short
Specialized	+6.6%	20.6%	−14.0 pts short
Semi-Skilled	+6.2%	20.6%	−14.4 pts short
TL Semi-Skilled	+6.1%	20.6%	−14.5 pts short
Skilled Trades	+9.9%	20.6%	−10.7 pts short
New Hire Production	+9.4%	20.6%	−11.2 pts short
Part-Time	+20.2%	20.6%	Near parity

*Source: U.S. Bureau of Labor Statistics CPI data (BLS.gov), cumulative 2021–2026 = 20.60%. This table shows Year 1 only. The full TA includes raises in 2027, 2028, and 2029 as well — to evaluate whether wages fully recover, you'd need to compare the contract's total 4-year compounded increase against cumulative inflation over the same period.

📊

Article 23 — What Would a Fair Raise Actually Look Like? Four Benchmarks

CONTEXT

The company reported $4.6 billion in revenue in 2025 — a record for the third consecutive year, up 37% from $3.36B when the 2021 contract was signed. Below are four independent benchmarks for what wages could look like. None of these is a union demand — they're reference points drawn from public data so members can judge for themselves. All figures reflect Nexteer's global company performance; site-level financials are not published publicly.

① Inflation Parity

BLS CPI: 20.6% cumulative 2021–2026. Just enough to break even — members would have the same purchasing power as when they signed.

② Revenue-Proportional

Nexteer revenue +37% since 2021. If wages grew with the company's own top-line growth, this is what members would earn.

③ Inflation + Half Revenue Share

A negotiated middle ground — full inflation recovery plus half the revenue-growth gain (~39% total). Workers catch up AND share modestly in growth.

④ UAW Big 3 Pattern

The 2023 UAW Detroit 3 strike won ~25% over 4.5 years. Applying the same Year 1 front-load (~11%) as a benchmark for what UAW set as the new standard.

Classification	2021 Rate	① Inflation +20.6%	② Revenue +37%	③ Inflation+½ +39%	④ UAW Pattern +11% Yr1	Offered 2026 TA Yr1
Production	$21.50	$25.93	$29.46	$29.89	$23.87	$22.50
Specialized	$22.75	$27.44	$31.17	$31.62	$25.25	$24.25
Semi-Skilled	$24.25	$29.25	$33.22	$33.71	$26.92	$25.75
TL Semi-Skilled	$24.75	$29.85	$33.91	$34.40	$27.47	$26.25
Skilled Trades	$38.00	$45.83	$52.06	$52.82	$42.18	$41.75
New Hire Production	$17.42	$21.01	$23.87	$24.21	$19.34	$19.05
Part-Time	$21.00	$25.33	$28.77	$29.19	$23.31	$25.25

How to read this: The offered Year 1 rate only beats the UAW Big 3 benchmark for Part-Time workers — and Part-Time was so far below market it almost had to be raised substantially. For every full-time classification, the offer is below even the minimum inflation-recovery benchmark.

⚠

Articles 11 & 16 — ESTA Replaces the VR System Members Controlled

CONCERN

💡 What is ESTA? Michigan's Earned Sick Time Act — state law requiring employers to provide paid sick time. Under the 2026 TA, Nexteer front-loads 40 hours each January 1. It replaced the VR (Restricted Vacation) system that members used to manage sick time and protect overtime pay.

2021 — VR (Restricted Vacation)

40 hours with no prior approval needed (except days adjacent to holidays). Usable in 6-minute increments. Max 5 uses per year. Counted as "paid vacation days" toward the 40-hr weekly OT threshold.

Practical example: Call in Monday using VR → counts toward 40 → work Tue–Fri (32 hrs) → total 40 → Saturday = overtime rate.

2026 TA — ESTA

Replaces VR. Added to Art. 11 Sec. 3 — so it technically still counts toward the 40-hr OT threshold. But it's now governed by Michigan state law, not just the contract. Rules attached: 72-hr annual cap on use, rolled-over hours locked out during the February vacation scheduling period, and less member-controlled flexibility than VR provided.

The 40-hour OT threshold protection technically carries over — ESTA hours count the same way VR hours did. The concern is that the familiar, flexible system members understood and used strategically is being replaced by a state-law framework with more restrictions attached. Members who knew how to use VR effectively had reason to be skeptical of this switch.

🔒

Article 22 — 4-Year Contract Locks In Current Terms Through 2030

CONCERN

2021 Contract

~5 years (May 2021 – Mar 2026)

2026 TA

4 years (Mar 2026 – Mar 2030)

Members would be locked in at these rates until March 2030 with no ability to renegotiate if economic conditions change or the company's situation improves significantly.

⚖ Mixed — Real Gains and Real Losses in the Same Change

💊

Article 17 — Healthcare (Legacy Employees, Hired Before 5/24/2021): Plan Design Changed

MIXED

Weekly premiums stay at $0 — that did not change. But the plan itself changed. Some costs went up, some went down. Here's the exact comparison, line by line:

Item	2021 HMO	2026 TA EPO Plan 1
Weekly premiums	$0	$0 — unchanged
Annual deductible — self / family	$1,000 / $2,000	$1,500 / $3,000 ↑ worse
Coinsurance — employer / employee	80% / 20%	90% / 10% — better
Out-of-pocket maximum — self / family	$3,400 / $6,800	$2,750 / $5,500 — better
ER copay	$150	$225 — worse (+$75)
Primary care (PCP) visit	$20	$20 — unchanged
Specialist visit	$40	$50 — worse (+$10)
Urgent Care	$50	$50 — unchanged
Generic Rx	$15	$20 — worse (+$5)
Preferred Brand Rx	$30	$35 — worse (+$5)
Company HRA contribution	$500 self / $1,000 family	$500 / $1,000 — unchanged

What got better: Coinsurance improved — you pay 10% instead of 20% of costs after the deductible is met. The total out-of-pocket max also dropped, meaning in a worst-case health year you're protected at a lower ceiling.

What got worse: The deductible went up $500 (self) or $1,000 (family). ER visits cost $75 more per visit. Prescription copays went up. These are costs most members hit regularly.

How it affects you depends on how you use healthcare. If you rarely meet your deductible and mostly pay copays and Rx, this is a net negative day-to-day. If you have a major health event, the lower OOPM and better coinsurance can help.

📋

Article 24 — Attendance: Lower Discharge Threshold, But ESTA Absences Explicitly Exempt

MIXED

💡 What is ESTA? Michigan's Earned Sick Time Act — paid sick time required by state law. Under the 2026 TA, ESTA absences are explicitly exempt from attendance points. Using ESTA hours to call in sick does not count against you.

Item	2021 Contract	2026 TA
Discharge threshold	18 points = discharge	12 points = discharge — worse, lower threshold
Points on record	12 months active service	12 months — unchanged
Tardy under 1 hour	Not specified in contract	= 1 point
Tardy 1–4 hours	Not specified in contract	= 2 points
Absent / Tardy 4+ hours	Not specified in contract	= 3 points
ESTA absences	Not addressed — status was unclear	Explicitly exempt from points
ESTA front-load	N/A — VR used instead	40 hrs front-loaded January 1 each year

The concern: Lowering the discharge threshold from 18 to 12 points is a significant tightening — members have less margin before termination. Under the new point structure, three absent days could theoretically put a member at 9 points — 75% of the way to discharge.

The gain: ESTA absences are explicitly exempt, so using your ESTA hours to call in sick does not accumulate toward that lower threshold. This is a genuine protection. These two changes work against each other — members have less margin overall, but ESTA use is protected.

⚠ In the 2021 Contract — Not Confirmed in the 2026 TA

These provisions are clearly written into the 2021 CBA but are not mentioned anywhere in the 2026 TA comparison notes. They may have carried over unchanged, been modified, or been removed — we can't confirm from the TA text alone. Verify each one with your committeeperson or steward before assuming it still applies under the new contract.

📅

Deferred Holidays — Art. 16 Sec. 8

⚠ VERIFY

2021 Contract

Work a designated holiday + Group Leader pre-approval = bank those hours as a paid vacation day to use anytime during the year. Non-Christmas deferred hours don't roll to next year (paid out January). Christmas holiday hours CAN carry into the following year. Deferred hours don't count toward OT when used.

2026 TA — Status Unknown

Not mentioned in TA comparison notes. Members raised this during ratification — the ability to bank a holiday and use it as a flex day is a real quality-of-life benefit. If removed, working a holiday only gets you holiday pay with no banked day off.

🏆

Perfect Attendance Incentive — Art. 24D

⚠ VERIFY

2021 Contract

Every 6-month period of perfect attendance earns your choice of: 8 hrs additional paid vacation OR 8 hrs straight-time pay. Award periods: Sept 1–Feb 28 and Mar 1–Aug 31.

2026 TA — Status Unknown

Not mentioned in TA comparison notes. If removed, members lose a meaningful incentive that rewarded good attendance twice a year.

💰

Overtime Reimbursement Voucher — MOU 13

⚠ VERIFY

2021 Contract

If your OT rights were violated (you were skipped or improperly passed over), you receive a "makeup" voucher — hours worked at a date of your choosing. Saturday OT vouchers can also be used to excuse yourself from a future mandatory Saturday within 90 days. Willful/repeated violations escalate to Step 4 grievance.

2026 TA — Status Unknown

Not mentioned in TA comparison notes. This gave members real recourse when OT equalization was violated — including the ability to skip a future mandatory Saturday using a voucher.

⏰

Weekend OT Advance Notice + 4-Hour Call-In Minimum — Art. 11

⚠ VERIFY

2021 Contract

Company must make sincere efforts to notify you of weekend OT by Thursday (C-shift employees on their Thursday). If not advised before your last Friday lunch break, you're only charged for hours made available before the weekend. If called in without proper notice at all: minimum 4 hours pay guaranteed.

2026 TA — Status Unknown

Not mentioned in TA comparison notes. The 4-hour call-in minimum is a real protection for members called in last minute.

👓

Prescription Safety Glasses — Art. 12 Sec. 8B

⚠ VERIFY

2021 Contract

Prescription safety glasses furnished at Nexteer's expense after 30 days worked. Replaced at Management's expense if damaged in a plant accident.

2026 TA — Status Unknown

Not mentioned in TA comparison notes. Confirm whether this benefit continues.

👕

Damaged Clothing Reimbursement — Art. 25 Sec. 7

⚠ VERIFY

2021 Contract

If your clothing is damaged while you were following your SWIs (Standardized Work Instructions), Nexteer reimburses up to $50 per article of clothing at replacement cost.

2026 TA — Status Unknown

Not mentioned in TA comparison notes.

🚑

Ambulance Service — Art. 12 Sec. 11D

⚠ VERIFY

2021 Contract

Company pays the full cost of ambulance service when required at the plant.

2026 TA — Status Unknown

Not mentioned in TA comparison notes.

📈

Savings Distribution / Productivity Sharing Program — MOU 25

⚠ VERIFY

2021 Contract

Each year of the contract, Nexteer implements a productivity and cost-savings sharing program for all hourly employees. Metrics reviewed quarterly at Labor-Management Committee. Company must give 30 days notice to cancel and must negotiate alternatives within 14 days of canceling.

2026 TA — Status Unknown

Not mentioned in TA comparison notes. If discontinued or modified, it's a real financial impact worth knowing about.

🔄 Key Protections — Carried Over Unchanged

📅

Art. 11 Sec. 4B — Saturday: 2-Consecutive Rule

UNCHANGED

After working 2 consecutive Saturdays, you may decline the 3rd — as long as you had no unexcused absence the preceding week. The company can require Saturdays, but they can only make you work 2 out of 3. Word-for-word identical in both contracts.

🚫

Art. 11 Sec. 4C — Sunday OT: Always Voluntary

UNCHANGED

Sunday overtime is never mandatory. Identical in both contracts.

⏱

Art. 11 Sec. 4A — 9th Hour Daily OT: Voluntary

UNCHANGED

Hours beyond 8/day are voluntary unless the company demonstrates a customer-schedule business case. Unchanged.

🗓

Art. 15 Sec. 3 — Holiday Weekend Canvassing

UNCHANGED

Company must seek volunteers before making Saturday mandatory on a holiday weekend. Language is identical in both contracts.

💼

Art. 8 — Severance: $1,500/mo up to $40,000

UNCHANGED

$1,500 per month worked, up to $40,000 maximum, upon permanent layoff. Identical in both contracts.

💊

Art. 17 — Legacy Healthcare: $0 Premiums

UNCHANGED

Employees hired before May 24, 2021 pay zero in weekly premiums. This did not change.

📝

Art. 6 — Grievance: 6-Step Process

UNCHANGED

All steps, timelines, and committeeperson access rights unchanged. You must still be released within 30 minutes of requesting a committeeperson.

⚠

Art. 7 — Discipline: 24-Month Lookback & Record Clearing

UNCHANGED

Prior infractions older than 24 months cannot be used against you. A 12-month gap between infractions clears your record. Identical in both contracts.

All Other Unchanged Articles

📋

Art. 1 — RecognitionUAW recognized as exclusive bargaining rep at 3900 E. Holland Rd., including Plant 14. Unchanged.

⚖

Art. 2 — Equal Employment / Right to WorkNon-discrimination protections, ADA accommodation, USERRA, personnel record access rights. Unchanged.

💳

Art. 3 — Voluntary Payroll DeductionUnion dues deducted from 2nd paycheck of month. UAW-CAP deducted from 3rd. Hold harmless provision. Unchanged.

🤝

Art. 4 — Union RepresentationChairperson, President, District Reps (1 per 260 employees), super seniority, work centers, 48-hr notice for meetings. Unchanged.

🏭

Art. 5 — Management's RightsCompany's retained rights to hire, direct operations, drug testing (3-strike policy). Unchanged.

📊

Art. 8 — Seniority, Layoff & Recall90-day probation, layoff order by classification/department, shift preference (every 4 months), recall rights. Unchanged.

🏥

Art. 9 — Leave of AbsencePersonal (30 days informal / 90 days formal), bereavement, jury duty, union, FMLA, medical, military, public office. Unchanged.

🔧

Art. 10 — Bargaining Unit WorkSupervisors prohibited from doing hourly work except emergencies and training. Grievance available for repeated violations. Unchanged.

🚨

Art. 13 — Critical Plant StatusProvisions for mandatory coverage during critical plant situations. Unchanged.

📌

Art. 14 — Classifications, Posting & TransfersMax 4 transfer apps on file. Job posting 5 business days. Reduction/displacement decision tree. Seniority displaces in layoff. Unchanged.

🗓

Art. 15 — Holidays (structure)15 holidays per year including Christmas period. Holiday pay eligibility rules. 2026–2029 dates listed in new contract. Deferred holiday provisions — see Concern card, not confirmed in TA.

🚫

Art. 18 — No Strikes or LockoutsUnion agrees no strikes; Company agrees no lockouts for the life of the agreement. Unchanged.

📄

Art. 19 — Complete AgreementThis CBA represents the full agreement. Past practices not listed are no longer valid unless carried in writing. Unchanged.

📑

Art. 20 — MOU ListingAll Memoranda of Understanding incorporated into the agreement are listed here. Unchanged.

⚖

Art. 21 — SeverabilityIf any provision is found invalid by law, the rest of the contract stays in effect. Unchanged.

💵

Art. 23 — Pay Procedures (structure)Direct deposit, pay stubs, shift premiums (A: none / B: 2.5% / C: 5%), grievance settlement payment timelines. Unchanged.

🏢

Art. 25 — General ProvisionsBulletin boards, cafeteria service, uniforms, kiosk/printer access, pay stub requirements. Unchanged.

🏗

Art. 26 — FacilitiesMaintenance of plant facilities and working conditions. Unchanged.

⏱

Art. 27 — Relief Time6 min per hour worked, 30-min lunch. Continuous operations: 23 min before/after lunch (46 min total). Unchanged.

🌐

Art. 28 — OutsourcingCompany will discuss any insourcing/outsourcing plans at the Labor-Management Relationship Committee. Unchanged.

🤖

Art. 29 — Future Work & New TechnologiesCompany commits to retraining members for new equipment and technologies. Topic on LMRC agenda. Unchanged.

🎓

Art. 30 — Tuition AssistanceReimbursement or up-front payment for approved fields of study at accredited schools. Unchanged.