United Auto Workers reject Case New Holland Industrial proposal; strike enters 4th week

Talks between United Auto Workers and Case New Holland Industrial were halted Thursday after a proposal from the company that included increased wages that would be largely offset by more costly health insurance.

"Neither side's talking," Nick Guernsey, president of UAW Local 807, told The Hawk Eye on Monday as the strike by about 430 unionized employees at CNHi's Burlington plant entered its fourth week. "The end of last week, we weren't gaining any traction and it just kind of got to a point where there's no sense of wasting anyone's time."

Guernsey and a Local 807 committee chairman traveled to Madison, Wisconsin, last week to meet with representatives of UAW International; UAW Local 180, which represents about 600 employees of CNHi's Racine, Wisconsin, plant; and Case as the parties resumed talks for the first time since the strike began at noon May 2.

Rebecca Fabian, a spokesperson for CNHi, said she could not comment about the negotiations and instead presented the company's official statement, which criticized the UAW for walking away from the bargaining table, as well as for not putting the proposal to a vote by its members.

Previously: Talks between United Auto Workers and Case New Holland resume: 'We're going in a positive direction'

"Unfortunately, the union declined to meet or allow the company to present and explain its position and proposal and indicated that they would not allow their members to see the proposal," the statement reads. "The union then left and discontinued bargaining. While the union indicated that they were ready to resume the negotiations at the beginning of the week, we were very disappointed in their decision to walk away.

"CNH Industrial is proud of the comprehensive offer it made to the union on May 19. The terms of this final offer include significant economic improvements for employees over the terms contained in the company’s last proposal given to the union on May 1. We hope that the union shares the terms of the company’s final offer with its members. After being on strike for more than three weeks, the CNH Industrial employees deserve to know what the company has offered.”

Guernsey said the UAW did not put the proposal to a vote because it did not meet members' demands, which were compiled based upon survey responses and were presented to Case on Wednesday, nor did it account for cost-of-living increases.

"What they're proposing doesn't even register on our demand letter, so there's no sense in bringing it back," he said.

Details of Case's three-year proposal: Raise in wages, but also in insurance costs

Case's proposal, Guernsey said, includes a raise of 8.5% that averages out to 6% over three years. But he said the insurance package outlined in the proposal would require higher employee contributions, along with higher deductibles.

"Even if my members took raises right now, we'd lose money on the insurance side because it's definitely inadequate and subpar to what we have now," he said.

Guernsey said that between the proposal's wage increase and rise in insurance costs, a first-year assembler would make $30 per week more than what they do now.

"The raise wouldn't even put a full tank of gas in my truck," he said.

Guernsey also noted that the proposed insurance plan can be modified or limited at any time Case sees fit.

Guernsey said he believes CNHi was banking on the proposal being favored by the UAW's younger membership who may be in their first manufacturing job. Between the Burlington and Racine plants, 64% of UAW members have worked for the company for less than five years.

Related: 'Like you're in never-never land:' BNSF workers frustrated after 2.5 years of failed negotiations

"What the company did in the last year was they brought in a lot of new members who can vote on this contract. If the work isn't really there, and they bring this through to pass a subpar contract, and let's say they were to lay them off, then it just hurts everybody," he said. "Some of these members have never had real-life experience jobs, so they're coming from places like Taco Bell or working at the mall to coming into a manufacturing job. They've got a big pay raise, but they don't understand insurance and how expensive it is."

Also at issue is the length of CNHi's proposal. Guernsey said six-year agreements have been the norm, but Case's proposal was for a three-year deal.

Another sticking point, Guernsey said, was that Case's proposal did not include language preventing plant shutdowns throughout the duration of the contract and a minimum headcount. Guernsey said those job security-related items had been included in the UAW's previous agreement with CNHi that expired April 30.

Overtime relief is also on the UAW's list of demands.

The Burlington plant's regular work weeks consist of four 10-hour days, but the company can implement two hours of overtime per day, making for four 12-hour shifts, as well as nine hours of overtime on Fridays. The UAW would like to reduce the overtime shifts from 12 hours to 11.

More: 'I did not want to cross a picket line': Engineer quits at Case New Holland in solidarity with union

"All we're asking for here is give us an hour of our day back so our members can get their kids from day care without penalty," Guernsey said. "Apparently, that one hour affects their ability to manage the plant in such a manner that it can't even be talked about."

Vacation time, as well as the flexibility to use that time beyond the plant's summer shutdown, are also being sought. Guernsey said the company appeared to be more receptive of this than other items.

'If you want change, you have to have a vote': Union workers dig in for long fight

Union members were informed of the proposal, and its rejection, during an emergency meeting Friday.

"That's when they gave us the, OK, they're offering us this X amount of pay raise, but then they want us to take this insurance, which just cancels it out," Jason Wasson said Monday from the picket line. "That's really where we're at right now. Do you guys want to keep building crap tractors in there, or do you want us to get back in there and build the quality tractors we were before?"

Wasson has been working at Case for nearly four years and joined the union in March 2021 after discussions with other UAW members.

"They said you want change, you've got to be a part of it, and the only way to be a part of it is to join," Wasson said. "And they're not wrong. At the end of the day, if you want change, you have to have a vote. If you're not part of the union, you don't have a vote."

Now, the single father is sharing that lesson with his 10-year-old son, Douglas "Dewy" Wasson, who has joined his father on more than one occasion on the picket line before and after school.

"He understands I'm not doing it just to do it," Jason Wasson said. "He understands I'm doing it so his generation hopefully doesn't have to fight as hard for what's right."

The father and son have made lifestyle changes to accommodate the lessened pay Wasson receives while on strike, such as dining on ramen noodles and canceling a summer vacation to Texas.

From May 9: UAW Local 807 strike of Case New Holland continues; negotiations remain on hold

Wasson said he has been taking on side work and had held off on contributing to his 401k early on in anticipation of the strike.

Craig Bowman, an 11-year UAW member who serves on the union's committee, said he, like other unionized employees, began putting away more savings more than a year ago as the end of their contract with Case was drawing nearer. He began saving more aggressively when John Deere workers went on strike in November.

"We usually follow suit with them," Bowman said.

Guernsey said at least two unionized employees have left for other employment opportunities since the strike began.

"I tell all my members this: There are so many places out there hiring. You might have a better job, and if you have an opportunity, you should take it," Guernsey said. "Case has proven that they're probably not the nicest company to work for, so if the opportunity comes up, I hope my members take it."

Michaele Niehaus covers business, development, environment and agriculture for The Hawk Eye. She can be reached at mniehaus@thehawkeye.com.

This article originally appeared on The Hawk Eye: Contract talks stall, strike continues after UAW rejects CNHi proposal