TA 2026 v2 — Article-by-Article Changes

All Articles (28)

✅ Gains (9)

⚠ Concerns (3)

⚡ Mixed (2)

🔍 Verify (4)

📋 Unchanged (10)

Gains

Concerns

Mixed

Unverified in TA

✅ Gains & Improvements

💵

Article 23 — Two Ratification Payments: $2,000 Bonus + $3,000 Grievance Settlement

GAIN

2021 CBA

No ratification bonus

2026 TA v2

$2,000 ratification bonus + $3,000 grievance settlement check

The $2,000 ratification bonus is paid to all current active seniority employees upon ratification. The $3,000 grievance settlement check is paid to all non-New Hire, non-Skilled Trades employees (approximately 1,161 eligible employees) and is also paid upon ratification. Both payments go to employees on leave when they return to active status. This is new — the 2021 CBA had no signing or ratification bonus.

💰

Article 23 — Wage Increases All Classifications, All 5 Years

GAIN

Every classification gets a raise at ratification and each anniversary year through 2030. But according to U.S. Bureau of Labor Statistics CPI data, cumulative inflation from 2021 to 2026 is 20.60%. The Year 1 raise alone does not restore purchasing power lost since the 2021 contract was signed. You need to evaluate all five years together.

Classification	2021 Base	2026 (Rat.)	2027	2028	2029	2030
NH Start Rate	$17.00	$19.50	$20.05	$20.61	$21.18	$21.78
Production	$21.50	$22.93	$23.50	$24.50	$25.50	$27.00
TL Production	$22.00	$23.93	$24.50	$25.50	$26.50	$28.00
Specialized	$22.75	$24.68	$25.25	$26.25	$27.25	$28.25
TL Specialized	$23.25	$25.68	$26.25	$27.25	$28.25	$29.25
Semi-Skilled	$24.25	$26.18	$26.75	$27.75	$28.75	$29.75
TL Semi-Skilled	$24.75	$27.18	$27.75	$28.75	$29.75	$30.75
Trades	$38.00	$42.00	$43.14	$44.26	$45.50	$47.00
TL Trades	$38.50	$43.00	$44.14	$45.26	$46.50	$48.00
PT Production	$20.50	$25.93	$26.50	$27.50	$28.50	$30.00

*Source: U.S. Bureau of Labor Statistics CPI data (BLS.gov), cumulative 2021–2026 = 20.60%. Wage increases effective first pay period following ratification, then each contract anniversary year. Contract expires December 20, 2030.

📊

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 on purchasing power.

② Revenue-Proportional

Nexteer revenue +37% since 2021. If wages grew with company top-line growth.

③ Inflation + Half Revenue

Full inflation recovery plus half the revenue-growth gain (~39% total).

④ UAW Big 3 Pattern

2023 UAW Detroit 3 strike won ~25% over 4.5 years. Year 1 front-load ~11%.

Classification	2021 Rate	① Inflation +20.6%	② Revenue +37%	③ Infl+½ +39%	④ UAW Pat. +11% Yr1	Offered TA v2 Rat.
Production	$21.50	$25.93	$29.46	$29.89	$23.87	$22.93
Specialized	$22.75	$27.44	$31.17	$31.62	$25.25	$24.68
Semi-Skilled	$24.25	$29.25	$33.22	$33.71	$26.92	$26.18
TL Semi-Skilled	$24.75	$29.85	$33.91	$34.40	$27.47	$27.18
Skilled Trades	$38.00	$45.83	$52.06	$52.82	$42.18	$42.00
New Hire	$17.00	$20.50	$23.29	$23.63	$18.87	$19.50
Part-Time	$20.50	$24.73	$28.09	$28.50	$22.76	$25.93

How to read this: For every full-time classification, the offered Year 1 rate remains below even the minimum inflation-recovery benchmark. Part-Time workers again fare best in Year 1 — they were severely underpaid and had to be brought up.

🏥

Articles 11 & 16 — ESTA: 72 Hours Front-Loaded (Up from 40 in TA v1)

GAIN

💡 What is ESTA? Michigan's Earned Sick Time Act — state law requiring employers to provide paid sick time at your regular wage rate. It replaces the old VR (Restricted Vacation) system. ESTA is NOT unpaid leave.

2021 CBA

40 hrs VR (Restricted Vacation)

2026 TA v2

72 hrs ESTA front-loaded each January 1

TA v1 proposed 40 hours of ESTA. TA v2 increased this to 72 hours — a significant improvement. The 72-hour cap also applies as the annual maximum you can use. Unused ESTA balances are paid out annually. New hires cannot use ESTA until 90 calendar days after hire. Minimum use increment is 1 hour (same as TA v1; VR was 6 minutes).

📅

Article 11 — ESTA Absence Can't Cost You the Right to Decline 3rd Saturday

GAIN

💡 The 2-of-3 Saturday Rule: The company can require you to work Saturdays. But after 2 consecutive Saturdays in your department, you can decline the 3rd — as long as you had no unexcused absence the preceding week. They can only force 2 out of 3. Never the 3rd after 2 consecutive.

2021 CBA

Any unexcused absence the prior week can strip your right to decline

2026 TA v2

ESTA absences and Art. 11 Sec. 3 absences explicitly cannot be coded unexcused for this purpose

Using ESTA to call in sick cannot be used against you to force a 3rd consecutive Saturday. This protection was also in TA v1 and is carried into TA v2.

🛡

Article 17 — Life Insurance: Age-65 Reduction Eliminated, AD&D Doubled

GAIN

2021 CBA

Basic life reduced at age 65 | AD&D = 50% of base wage

2026 TA v2

Age-65 reduction eliminated effective 1/1/2026 | AD&D = 1× base wage

AD&D (Accidental Death & Dismemberment) doubles from 50% to 100% of your base wage. The age-65 life insurance reduction is eliminated. Both effective January 1, 2026.

👟

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

GAIN

2021 CBA

$100/year

2026 TA v2

$150/year

$50 increase per year. Voucher available after 30 days of seniority, renewed annually.

🦷

Article 17 — New Hire Dental & Vision: 36-Month Wait Eliminated

GAIN

2021 CBA (post-5/24/21 hires)

36-month wait for dental & vision coverage

2026 TA v2

Eligible same time as medical — first of month after 60 days

Employees hired after 5/24/2021 previously waited 3 years for dental and vision. Under TA v2 they're eligible with medical coverage. Dental contributions: Self $2.50/week, Family $10.00/week. Vision: Self $1.00/week, Family $3.00/week.

➕

Article 17 — New Voluntary Benefits Added (Critical Illness, Accident, Hospital)

GAIN

2021 CBA

Not available

2026 TA v2

Group Critical Illness, Accident, and Hospital insurance available as voluntary after-tax elections

Available to all full-time hourly employees beginning 1/1/2027 with fall 2026 enrollment. Available as long as they're also available to Nexteer salary employees. Company reserves the right to cancel with annual notice.

📆

Article 22 — Contract Duration: 2026–2030 (5 Years)

GAIN / NOTE

2021 CBA

5 years (2021–2026)

2026 TA v2

Expires December 20, 2030

The contract locks in through December 20, 2030. This is framed as a gain because it provides multi-year wage security — but it also means members won't have another opportunity to negotiate until 2030. Five years is a long commitment. Evaluate whether the full 2026–2030 wage schedule meets your needs before the contract expires.

⚠ Concerns

📋

Article 24 — Attendance: Discharge Threshold Drops from 18 to 12 Points

CONCERN

💡 ESTA absences are explicitly exempt from attendance points. Using your ESTA sick time to call in will NOT count against you. This is written into Article 24.

Category	2021 CBA	2026 TA v2
Tardy (less than 4 hours)	= 1 point	= 1 point
Tardy (4 hours or more)	= 3 points	= 3 points
Absent	= 3 points	= 3 points
Each additional absent day	+1 point/day	+1 point/day
Discharge threshold	18 points	12 points ↓ WORSE
Points on record	12 months	12 months

This was the most rejected element of TA v1 and it remains unchanged in TA v2. Under the 2021 CBA you can accumulate up to 17 points before a discharge interview. Under TA v2 that drops to 11 points. A single bad stretch — a week-long illness without ESTA hours available, a family emergency — could be 7 points in one week. At 12 points you're gone. The ESTA exemption helps, but 72 hours of ESTA only covers so much.

⚠

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 TA v2, Nexteer front-loads 72 hours each January 1. It replaces the VR (Restricted Vacation) system that members have used since the 2021 contract.

2021 CBA — VR System

40 hrs VR | Use in 6-minute increments | Up to 5 occurrences/year to excuse attendance | You control when to use it | Rolls over considerations built in

2026 TA v2 — ESTA

72 hrs ESTA | Minimum 1-hour increment | 40 hrs can be used like VR (5 occurrences) | Company can require documentation after 3 consecutive days

VR gave members more granular control — 6-minute increments meant you could use it for a tardy without burning a full hour. ESTA requires minimum 1-hour use. The 72-hour total is more generous, but members lose the fine-grained flexibility VR provided. Also: ESTA hours during your regular shift hours do NOT count toward the 40-hour overtime threshold under Article 11 Section 14 — this is different from VR which did count.

⏳

Article 23 — New Hire Grow-In Extended: 24 Months → 48 Months for Future Hires

CONCERN

2021 CBA

New hires grow into production rate — not specified in this document

2026 TA v2

Employees hired after ratification grow into production rate after 48 months (4 years)

Current NH employees keep the 24-month grow-in from TA v1. But anyone hired after ratification will take 4 years to reach production rate — twice as long. This creates a longer period where the company pays new hires at the lower NH rate. It doesn't affect current employees but it does affect who the company hires going forward.

⚡ Mixed — Gain and Concern

🏥

Article 17 — Healthcare: Some Copays Up, Out-of-Pocket Max Down

MIXED

Plan design changes take effect January 1, 2027. Premiums remain $0 for legacy employees (hired before 5/24/2021). This is a mixed picture — some things improve, some get worse.

Item	2021 CBA (Current)	2026 TA v2 Plan 1 EPO	Change
Weekly premium	$0	$0	Same ✓
Deductible self/family	$1,000/$2,000	$1,500/$3,000	↑ Worse
Coinsurance	80/20	90/10	Better ✓
OOPM self/family	$3,400/$6,800	$3,075/$6,150	Better ✓
ER copay	$150	$225	↑ Worse
PCP visit	$20	$20	Same ✓
Specialist	$40	$40	Same ✓
Urgent Care	$50	$50	Same ✓
Generic Rx	$15	$20	↑ Worse
Preferred Brand Rx	$30	$30	Same ✓
Company HRA	$500/$1,000	$500/$1,000	Same ✓

Opt-out incentive unchanged at $1,300/year ($25/week) for legacy employees who waive medical. Dental and vision unchanged for legacy employees. New hire (post-5/24/21) contributions remain as negotiated. Specialist copay improved from TA v1 ($50) back to $40 — same as 2021 CBA.

🏖

Article 16 — Vacation: <1 Year Gets 72 Hrs, 15+ Year Top Bracket Unchanged

MIXED

💡 Of your total vacation entitlement, 72 hours are designated as ESTA qualifying hours. These are the hours front-loaded each January and used for sick time. The rest is your regular vacation entitlement.

Seniority	2021 CBA	2026 TA v2
Less than 1 year	40 hrs (prorated)	72 hrs (ESTA)
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+ years	160 hrs	160 hrs

The only bracket change is under 1 year: goes from 40 to 72 hours — but these are ESTA sick-time hours, not additional vacation. The 15+ year top bracket remains at 160 hours with no new 20+ year tier (that proposed change from TA v1 did not carry into TA v2).

🔍 Verify With Your Rep

📋

Deferred Holidays (Art. 15 / Art. 16)Working a designated holiday + Group Leader pre-approval = bank hours as a paid flex day. Non-Christmas hours paid out January if unused. Christmas hours can carry over. Confirm this provision carried into TA v2 with your committeeperson.

🏆

Perfect Attendance Incentive (Art. 24D)8 hours vacation or pay per 6-month clean attendance period. Award periods Sept 1–Feb 28 and Mar 1–Aug 31. Confirmed in TA v2 text — verify with rep how ESTA usage affects eligibility.

⏱

Overtime Reimbursement Voucher (MOU 13)OT rights violated = makeup voucher at your chosen date. Saturday OT vouchers excuse a future mandatory Saturday within 90 days. Trifold notes minor language changes — verify current terms with your committeeperson.

💊

Prescription Safety Glasses (Art. 12)Company pays, replaced free if damaged in plant accident. Confirmed in 2021 CBA — verify carried into TA v2.

📋 Unchanged from 2021 CBA

📜

Art. 1 — RecognitionUAW Local 699 remains exclusive bargaining representative for all production and maintenance employees at the Saginaw Site.

⚖

Art. 5 — Management RightsCompany retains sole right to hire, promote, discharge for cause, set production schedules, and determine methods of manufacturing. No changes.

📝

Art. 6 — Grievance Procedure6-step process with timelines unchanged. File within 7 working days (3 for discipline/discharge). "Do it then grieve it" still applies.

🔧

Art. 7 — DisciplineCorrective not punitive. 24-month lookback. 12-month clearing between infractions. No changes.

📊

Art. 8 — Seniority, Layoff & RecallSeniority rules, layoff order, recall rights, and severance ($1,500/month up to $40,000) unchanged.

🏥

Art. 10 — Bargaining Unit WorkSupervisors still cannot perform hourly bargaining unit work except for emergencies and training. No changes.

📅

Art. 11 — Saturday 2-of-3 RuleCompany can require Saturday work. After 2 consecutive Saturdays you may decline the 3rd — as long as no unexcused absence the prior week. Unchanged. ESTA protection added (see Gains).

🚫

Art. 18 — No Strike / No LockoutUnion agrees not to strike for the life of the agreement. Company agrees not to lock out employees. Authorized strikes require International UAW sanction. One wording change: "(including Plant 14)" removed from Section 1.

⏰

Art. 27 — Relief Time6 minutes per hour worked, 30-minute lunch. Continuous operations: 46 minutes total. Unchanged.

🎓

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