New Contract lower pay, less hours, less coverage

[VirulentX]

What is the name of your state (only U.S. law)? Pennsylvania.
My mother ( who is completely computer illiterate and is also present with me if any additional details or questions are needed) has been working for the same company for 13 years. They were going under and about to close. They finally had a buyer for the company.
The new company owner has implemented a new contract for employment. The contract basically states that employees will receive no short term or long term disability, very costly health care in comparison to the current health care plan she and other employees are on. a 5% cut in pay rate, and when presenting said contract they used scare tactics to get votes for the new contract. The union joined into the scare tactics and backed the company instead of workers. They said that if the contract wasn't signed they would get rid of 90% of employees, they will not pay for the unemployed, no compensation for termination etc. They could, without the contract force overtime more drastic pay cut down to minimum wage "was almost $13 hr" She had still voted no, but majority voted yes. New contract to take effect by the end of the month. The new health care costs $100+ per week exact amounts were not represented to employees. With the healthcare they represented a scenario for how benefits would apply. If she were to go to the ER she would have to pay 90% of costs. From what the contract states, they are going to have an entire profit out of underpaid workers producing the same product and continue to reduce pay until the company sells off the company after two years. Is there anything she could do to fight this? Would she be eligible for unemployment while she searches for another job due to the life-altering changes her workplace has made?

 

[TheGeekess]

What is the name of your state (only U.S. law)? Pennsylvania.
My mother ( who is completely computer illiterate and is also present with me if any additional details or questions are needed) has been working for the same company for 13 years. They were going under and about to close. They finally had a buyer for the company.
The new company owner has implemented a new contract for employment. The contract basically states that employees will receive no short term or long term disability, very costly health care in comparison to the current health care plan she and other employees are on. a 5% cut in pay rate, and when presenting said contract they used scare tactics to get votes for the new contract. The union joined into the scare tactics and backed the company instead of workers. They said that if the contract wasn't signed they would get rid of 90% of employees, they will not pay for the unemployed, no compensation for termination etc. They could, without the contract force overtime more drastic pay cut down to minimum wage "was almost $13 hr" She had still voted no, but majority voted yes. New contract to take effect by the end of the month. The new health care costs $100+ per week exact amounts were not represented to employees. With the healthcare they represented a scenario for how benefits would apply. If she were to go to the ER she would have to pay 90% of costs. From what the contract states, they are going to have an entire profit out of underpaid workers producing the same product and continue to reduce pay until the company sells off the company after two years. Is there anything she could do to fight this? Would she be eligible for unemployment while she searches for another job due to the life-altering changes her workplace has made?

Short answer: No.

 

[cbg]

Has the new contract gone into effect yet?

 

[justalayman]

If this is a union situation, there is nothing she can do other than find employment elsewhere. The majority have spoken so it is what it is.

Would she be eligible for unemployment while she searches for another job due to the life-altering changes her workplace has made?

nothing is 100% one way or the other when it comes to UI but unlikely. Why would she quit a job that makes more than UI to look for another job? Keep working while looking for that other job.

 

[tranquility]

Not only is this a permissible negotiated contract, but also many workers, including union workers, have this as a new reality with Obamacare. This is the way throughout the country.

As an exercise, guess the percentage of new jobs reported in the last quarter that are part-time. While the government says it is not because of the law, when the people who hire are asked, the answer points to the medical insurance requirements.

Once again, guess.

25%? No.

35%? Good try, but, no.

50%??!!! Not even close.

Guess. No, really, guess. Then look it up.

 

[cbg]

My point is that IF the new contract is not yet in effect and she has as yet worked no hours under the new conditions, then she MIGHT be able to quit and get unemployment. Though I am by no means convinced that doing so would be an economically sound move, since unemployment pays a fraction of the previous wage. In my state, which I grant is not the OP's, the wage reduction would have to be around 50% before unemployment would EQUAL what she could get at the reduced wage, let alone exceed it. And an increased cost to go to the ER? How many times this year have you had to go to the ER? Last time I was there was in 2005. What are the odds?