Create a free Equipment World account to continue reading

UAW Extends Contract with CNH Hour By Hour, For Now

Ryan Whisner Headshot

The United Auto Workers and CNH Industrial – whose brands include Case and New Holland construction equipment – have agreed to extend the current labor agreement hour by hour for its plants in Burlington, Iowa, and Racine, Wisconsin.

The current six-year labor agreement at both the Burlington (UAW Local 807) and Racine (UAW Local 180) facilities expired at midnight April 30. The agreement covers about 1,100 hourly employees.

According to CNH representatives, negotiations on a new labor agreement at the two facilities began April 4.At the time, company officials were expressing some optimism in reaching a fair, equitable and competitive agreement for the workers. 

Within a week, on April 10, according to recent Facebook posts and Farm Equipment, more than 95% of workers at both plants voted April 10 in favor of a strike authorization, six days after negotiations began. That vote did not call for a strike but gives the union the ability to do so if deemed necessary. According to UAW representatives strike authorizations are a common part of the UAW bargaining process.

At press time neither UAW, nor the company had further comment on the current status of the negotiations.

The last strike occurred at the two facilities during negotiations for a new contract in 2004. That 72-month contract between CNH Industrial and plants in Iowa, Wisconsin, Minnesota, and Illinois expired on May 2, 2004. Although workers overwhelmingly rejected a “final offer” from the company on May 8, no strike was called until November 2004.

After 19 days, UAW workers agreed to end the strike after CNH reportedly said talks were at an impasse and appeared to be willing to continue to negotiate. However, CNH Industrial locked out the workers, while continuing operations using a combination of temporary replacement workers and salaried employees. The lockout lasted an additional 17 weeks and concluded with a new labor agreement that was only slightly adjusted from the company’s original final offer.