Has the SUB plan changed in this Tentative Agreement?
No. The company’s obligations for SUB (supplementary unemployment benefit) have not changed. This Tentative Agreement does include language to align all documents to be consistent with changes implemented in 2011 which resulted in cost savings (Tan book, page 133).
The SUB Trust Fund was established in 1955 to supplement the state unemployment benefits members receive due to layoffs. Assets were deposited to the SUB Fund Trust using calculations that were contractually negotiated based on hours worked by UAW members.
In the 2011 contract, parties agreed to dissolve the SUB Trust Fund and the employer would honor its obligations through a corporate cash system, a change that does not affect the company’s obligations under the negotiated contract. This change led to important cost savings on administrative matters such as fees for auditors and banks. This is the same system used in the UAW-GM agreement on their SUB plan.
The Trust was dissolved in 2013, but many related documents regarding the Trust remained unchanged. This agreement allows the parties to revise all the SUB Plan documents to reflect the changes made in 2011 “without impacting benefit eligibility, entitlement; and with no disruption of SUB Plan benefit payments.” (Tan book, page 133).