The drugmaker reached agreement with members of United Steelworkers (USW) Local 10-86, who voted overwhelmingly to ratify a contract that gives employees at Merck’s West Point, Pa., facility a signing bonus, job security and wage increases each year of a three-year deal. The old contract expires today.

For the 1,800 unionized workers, the deal ensures them employment at a time when Merck is slashing thousands of jobs as part of an ongoing reorganization. For Merck, the deal offers stability at the plant that makes Gardasil, a key product in its financial rebound.

Here’s what each USW member will get - a $4,500 signing bonus and a 3.5 percent raise this year, along with 3.5 percent raises in the second and third years of the agreement. Merck agreed to increase its contribution toward medical benefits for the USW members by $4.5 million immediately, and by 11 percent each year of the agreement. As a result, the union boasts that its members won’t have to pay more for heath insurance.

Other features include a pay package for workers who choose to retire early, premium pay for any time worked over 40 hours a week and a full-time union safety representative. And on the honor basis, time clocks in the facility will be eliminated and employees will log hours themselves, for a trial period.

Source: Pittsburgh Daily Business [tags]Gardasil, Jobs, Merck[/tags]