The nearly nine-month-long strike affecting UAW agricultural equipment workers is over. CNH Industrial was notified by the United Auto Workers that its members ratified the latest contract agreement for nearly 1,100 employees in Burlington, Iowa, and Mount Pleasant, Wisconsin.
Case IH and New Holland tractors are manufactured in Wisconsin. The Iowa facility manufactures Case loaders, backhoes, forklifts, and dozers, and also has a research and development center.
U.S. Secretary of Labor Martin Walsh helped negotiate the contract, which CNH Industrial called its last, best, and final offer. CEO Scott Wine issued a statement thanking Walsh for his assistance and says they look forward to welcoming employees back to work, building the machines that help feed the world and build essential infrastructure.
Contract Details
Some UAW workers at striking CNH Industrial factories won pay raises up to 38%, according to an interview with UAW bargaining team member Tracey Chew. The contract will expire May 2026.
The following provides a partial list of benefits in the ratified contract:
- Pay raises: Some departments are getting pay raises between 28%-38%. Chew, who works in the Tractor-Loader-Backhoe Assembly line made $20.93 before the strike began on May 2, 2022. Under the new contract, she will make $23.77 starting January 30, 2023 and that will increase to $25.08 in May of 2023. Her pay will go up once again in March of 2026 to $27.67.
- Bonus vacation time: A worker will now only need to wait 12 years for one additional week of bonus vacation time. Before, workers would need to be with the company for 15 years to automatically get an extra week. Chew says it usually takes about five years of working with the company to be given two-weeks off automatically.
- PAA increases: Workers now have 40 hours of Paid Absence Allowance, up from 32 hours.
- Increased PTO flexibility: Workers can now call in to take vacation time 15 minutes before the start of their shift, instead of 30 minutes before their shift.
- Ratification bonus: The ratification bonus will be given out after 30 calendar days instead of 60 calendar days.
- Boot & Shoe Allowance: Completely new in this contract, workers will now be reimbursed up to $125 for boots/shoes for work.
A total of 62.4% of striking workers voted "yes" to the final contract. According to Chew, that the possibility of permanent replacement workers being brought in was a motivating factor in the final contract approval.
EDITOR’S TAKE:
Whew! What an ordeal - trying to get an agreement between the two parties. It finally took outside intervention for that to occur. It’s over now and the next negotiations won’t take place until 2026. With the significant increases in wages and benefits contained in this contract, it would not be surprising if the price for new tractors and machinery produced by CNH and New Holland increases. Some farmers/ranchers will baulk at the increases and instead turn their demand towards other options like new trucks! There is research to show that this is already taking place. That is even more reason to target farmers and ranchers with your marketing efforts. Be sure you mention the tremendous savings in the form of exclusive rebates and discounts available with AgPack®. We also strongly encourage all CAD members to sign up for AgTruckTrader.com – the only truck inventory website aimed specifically at farmers/ranchers!
