UAW Strike at CNH Grinds On
The Wall Street Journal reports negotiations between CNH Industrial NV and the equipment maker’s striking workers have hit a stalemate, deepening supply-chain problems with farm and construction equipment.
Bargaining sessions between the United Auto Workers (UAW) union and CNH broke down in the middle of June, and there are no additional meetings scheduled in the near term, union leaders and the company said.
About 1,100 hourly workers in Burlington, Iowa, and Racine, Wis., have been on strike since May 2 at the company.
The UAW wants higher wages and a longer contract than the company has offered. The union said the wage increases proposed by the company would be eaten up by the higher costs the company wants employees to shoulder for health insurance.
“This deal has to sell itself and right now it’s not selling itself,” said Nick Guernsey, president of the union local in Burlington, where CNH produces Case-brand construction equipment, including backhoes, and components.
CNH said UAW negotiators rejected the company’s last major proposal in May without putting it before rank-and-file members. “We strongly encourage the UAW to present our offer to our employees for a vote,” the company said.
Mr. Guernsey said the union wants a six-year contract that elevates workers’ hourly rates to the same levels as employees at CNH’s six nonunion U.S. plants, plus a raise on top of that. The UAW estimates that hourly nonunion workers for CNH make an average of about $5.50 an hour more than unionized workers at the Racine and Burlington plants. The company said pay rates for individual plants are based on labor rates in the communities where plants are located.
Deere UAW members from the Quad Cities traveled to Burlington on Sunday to join the CNH workers on the picket lines.