The UAW strike at CNH, which impacts about 680 workers at Mount Pleasant, Wisconsin, and over 400 employees at the Burlington, Iowa, plants has been going on for seven months now, and the Milwaukee Journal Sentinel reports "tensions are rising and there's no end in sight."
According to the article, it is one of the largest and longest strikes in the country and the two sides are so far apart that the bargaining committee has not brought a proposal to union membership to be voted on.
In a statement, CNH said the company is "disappointed that despite our best efforts we have been unable to reach a tentative agreement for our employees." "Our last, best and final offer for our Racine, WI and Burlington, IA plants included significant wage increases, the addition of three new and different healthcare plans to choose from and many other enhanced benefits. Since April and throughout the UAW-initiated strike, we have been negotiating in good faith to reach an agreement that is fair and reasonable to our employees, our company and our customers."
CNH recently appealed to workers through a full-page ad in the Racine Journal Times. The ad stated, “Unfortunately after seven months of negotiations, we remain far apart on many important issues. Because of this lack of real progress, we presented the union with our last, best and final offer (LBFO).”
In addition, the following provisions were listed in the ad:
- A $5,000 ratification bonus.
- A 23% wage increase over the course of the agreement, including a 9% increase upon ratification for “schedule A and 1A” workers.
- Effective 2023, all employees could be required to use only one week of vacation during the summer vacation shutdown.
- Extension of the current PPO healthcare plan option for the duration of the contract, a freeze on employee premium contributions for 2023 and a 5% cap on the premium increase.
The offer expired after it was not ratified, and CNH replaced it with a less generous offer.
The Journal Sentinel reports that under the latest offer, the ratification bonus declines from $5,000 to $4,000. The 9% first year wage increase was reduced to 8.5% and the 2025 wage increase went from 3.5% to 4%. A 5% cap on healthcare premium contributions was eliminated.
According to another report from Milwaukee Business Journal, Yasin Mahdi, President of UAW Local 180 out of Racine, Wisconsin, recently suggested the striking workers apply for other nearby jobs that pay more, including a new Haribo of America gummy bear factory. He said Haribo is offering $26 per hour to start.
Mahdi stated CNHI had proposed increasing wages by a combined $4.81 an hour over the next 4 years from the current rate of $20.93 per hour. Mahdi said CNHI’s "last and best offer" was "unacceptable."
EDITOR’S TAKE:
This strike will clearly leave a bad taste in everyone’s mouth, even after it is settled. There are no real winners in this type of standoff situation. All parties lose precious time, money and, for the company, market share, which is difficult to obtain and even more difficult to regain. Farmers/ranchers who are CNH customers also are forced to make decisions about purchasing their equipment from other OEM’s. That is especially challenging with the current supply shortage. It is unfortunate that the strike has been protracted this long with no end in sight. It is our hope that it can be resolved, and all parties will be able to move forward quickly. One good note – if farmers/ranchers are not able to purchase equipment they could be even more eager to purchase new trucks! Consider farmers/ranchers to be your best customer prospects for 2023!
