NEW CONTRACT DETAILS

5.1% - 6.5%

4.8% - 6.0%

4.1% - 5.2%

3.0% - 4.3%

1.0% - 2.0%

0%

The Merit Lump Sum Programs and Cost of Living Adjustment Provisions in the contract have been eliminated.  However, if it is known at the time of the merit payout in 2008 that NM will not be able to implement new HR Payroll software by the merit payout in 2009, then employees will continue to be eligible for a Merit Lump Sum Payout.  Senior merit will continue to be paid out as a lump sum.

“Tabbing” in Situations where employees return to work with permanent Medical Restrictions

Disability - Short Term

Effective - 1/1/08 Disability Benefits will be paid at 80% of pay.  There will also be a 7 calendar wait period before employees can receive any disability pay. 

·          Effective 1/1/08 all employees on the payroll as of 4/1/07 will receive a bank of 10 Disability Days.  These Disability days can only be used for disability absences and can help employees make up the difference between the 80% and 100% of pay.  Only 5 days and may be carried over from 2008 to 2009 and the days will cease to be available in 2010. 

·          The 7 calendar wait period will be waived for employees who:

·          1) It is known will be hospitalized or receive treatment in an outpatient surgical center for 4 or more hours

·          2) Begin their disability absence by being hospitalized or receiving treatment in an outpatient surgical center for 4 of more hours

·          With the combination of the 7 day wait waiver and the bank of disability days, an employee on Short Term Disability in 2008 can receive 10 weeks of Disability paid at 100% before transitioning to 80% benefit.

At any time an employee may use PTO days to receive 100% pay while out on Disability

Effective 1/1/08 - Employees will receive a maximum benefit of 2 years of Long Term Disability if their Disability is primarily due to mental health or substance abuse disorders.

In the future, employees taking Long Term Disability leave who are receiving Family Social Security Disability benefits will have the Family SSD benefit applied to offset the Long Term Disability they receive from Northwestern.

All office staff employee will have their jobs re-evaluated under a new Job Family system.  This transition is tentatively scheduled to occur in September of 2008.  30 days prior to the transition taking place, employees will be notified of what their job’s salary range level and job family will be.  Employees will have 60 days after being notified of their job slotting to file an appeal.  The Company anticipates that 80% of employees will remain in their current salary range level, 10% of employees will increase in salary level, and 10% of employees will have their salary range level decrease as a result of the new job evaluation system.  For employees, whose salary range level is lowered, they will continue to be paid and receive salary increases as if they were still in their former level; however the salary range maximum of their former level will be frozen. 

Effective 1/1/08 The “NVA Materials Only Plan” will be eliminated.

Effective 1/1/08 When a generic is available, but the pharmacy dispenses the brand name medicine for any reason other than the doctor indicating “dispensed as written”, employees will have to pay the difference between the brand name medicine and the generic medicine plus the brand name copay.

Effective July 1, 2007 - Employees in the Principal Plan may participate in voluntary case management allowing a case manager to extend benefits to the employee beyond the benefit maximums outlined in the health insurance plan documents.

Retiree Health Insurance

Effective 6/1/07, in order to receive subsidized health insurance from NM, employees will have to have 10 years of service at the time of retirement.  Employees with between 5 and 10 years of service will have access to the health insurance plan, but will have to pay 100% of the premium for the health insurance.

·          This change does not apply to employees who are age 50 of older as of June 1, 2007.

For all years of service past 10 years, the retiree health insurance contribution schedule will remain as it currently is.

Pension

·          For employees hired after 6/1/07 , they will have to have five years or more of pension service in order to be able to retire at age 65.

·          Effective January 1, 2009, benefit accrual service for hourly employees will be based on actual hours worked.

All service credited as of December 31, 2008 will remain.