Posted: Sat Sep 16, 2006 4:32 pm Post subject: "Red Circle" clause in new contract?
My Local is currently negotiating a new contract with my company and is willing to reduce some benefits for new hires. However, they propose to "Red Circle" the current employees and maintain current benefits for their future. Does this "Red Circle" have any validity when the contract expires? Will the "Red Circled" employees maintain their level of benefits after the current contract expires or can this clause become invalid upon the negotiation of a new contract in the future? Basically I'm asking how safe is it to rely on this "Red Circle" clause?