CNH Industrial says it has a contingency plan to minimize impacts on its operations as the strike at its Burlington, Iowa, and Racine, Wisconsin, plants continues.
The manufacturer of Case and New Holland construction equipment is attempting to negotiate a new labor agreement with the United Auto Workers members at the two plants.
“The very nature and purpose of a strike is to disrupt our business and create concern amongst our customers,” said Scott Wine, CNH Industrial CEO, during a conference call reviewing the company's first-quarter financial results.
Despite the intent, he said CNH is determined to satisfy its commitment to its customers, the communities it serves and other employees.
“It is our intent to continue operations; our dealers and customers certainly need us to,” Wine said.
No details were provided as to what the company’s contingency plan is; however, it is common practice for companies to hire temporary or replacement workers during a strike or lockout out employees while continuing operations. During past strikes, CNH has used both options.
UAW did not respond to a request for comment on any concerns related to either of those scenarios. With labor harder to find and replace and supply chain challenges, the current economic climate may give the union more leverage.
