Updated Jan. 24, 2023, 3:56 p.m. CST
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Summary of Updates:
CNHI UAW Contract Details Revealed
- UAW Workers Ratify Contract with CNH Industrial
- UAW & CNH Industrial Reportedly Close on New Agreement
- UAW Workers Reject CNHI's 'Last, Best & Final Offer'
- UAW Brings CNHI's 'Last, Best & Final Offer' to Striking Workers
- UAW CNHI Strike Hits 7 Month Mark
- UAW Leader Tells Striking CNHI Workers to Apply Elsewhere
- CNHI CEO: Company Will 'Continue to Seek Resolution' to UAW Strike
- U.S. Labor Secretary 'Willing to Help' in UAW/CNH Strike
- UAW Exec Says Union Not Close on Agreement with CNHI
- UAW & CNHI to Return to Negotiating Table This Week
- UAW & CNHI to Resume Negotiations in Mid-August
- Case IH Dealer: CNHI & UAW 'Need to Settle the Strike'
- CNHI UAW Employee to Dealers: 'We're Not Folding'
- UAW Exec Forecasts CNHI Bargaining Directly to Workers
- Some UK CNHI Workers Join UAW Workers in Striking
- CNHI Memo Reveals Details on Last Proposed Contract
- UAW & CNHI Restart Negotiations
- Senators Ask CNHI CEO to Consider Higher Wages for Striking Workers
- UAW Raises Strike Pay to $400 a Week
- Deere Dealer: No Equipment Means No Color Conversions During CNH Strike
- UAW Targets CNHI Tiered Pay System, Wage Gap vs. Non-Union Plants
- CNHI, UAW Release Statements on Status of Negotiations
- What’s Holding Up Negotiations Between CNHI & UAW?
- UAW Spokesman: Neither Side is Talking
- Talks Between CNHI & UAW Resume
- CNHI Reportedly Cancels UAW Employees' Healthcare
- Survey: CNH Dealers Forecast Lost Revenue From Strike
- Titan International CEO on Effects From CNH/UAW Strike
- UAW Local President Expects Strike to Last ‘3-6 Months’
- CNHI & UAW Were 'Very Far Apart' on Important Issues, Says CEO
- Former CIH Dealer: Dealers Should 'Watch Every Nickel & Dime' During Strike
- CNHI 'Disappointed' Parties Could Not Reach Labor Agreement
- UAW CNHI Workers Go on Strike
- UAW Bargainers Set Strike Deadline for 12PM CST
- UAW & CNHI Extend Current Labor Agreement 'Hour-by-Hour'
- Survey Shows 65% of Dealers Worried About Impact of CNH/UAW Contract Negotiations
- UAW Workers Vote for Strike Authorization in CNHI Negotiations
- CNHI Exec Says Company is Confident in 'Productive Solution' In UAW Negotiations
- How 'Pattern Bargaining' Could Affect the CNHI/UAW Negotiations & Non-Union Factories
- [On the Record] CNH Industrial UAW Contract Set to Expire in April
- CNHI & UAW to Negotiate New Labor Contract in April 2022
- UAW Confirms CNH Industrial Contract Up for Negotiation in 2022
Jan. 24, 2023
CNHI UAW Contract Details Revealed
News 8 reported Jan. 23 that some UAW workers at striking CNH Industrial factories had won pay raises up to 38%, according to an interview with UAW bargaining team member Tracey Chew. The contract will expire May 2026.
The report gave the following list of benefits in the ratified contract:
- Pay raises: Some departments are getting pay raises between 28%-38%. Chew, who works in the Tractor-Loader-Backhoe Assembly line made $20.93 before the strike began on May 2, 2022. Under the new contract, she will make $23.77 starting Jan. 30, 2023 and that will increase to $25.08 in May of 2023. Her pay will go up once again in March of 2026 to $27.67.
- Bonus vacation time: A worker will now only need to wait 12 years for on additional week of bonus vacation time. Before workers would need to be with the company for 15 years to automatically get an extra week. Chew says it usually takes about five years of working with the company to be given two-weeks off automatically.
- PAA increases: Workers now have 40 hours of Paid Absence Allowance, up from 32 hours.
- Increased PTO flexibility: Workers can now call in to take vacation time 15 minutes before the start of their shift, instead of 30 minutes before their shift.
- Ratification bonus: The ratification bonus will be given out after 30 calendar days instead of 60 calendar days.
- Boot & Shoe Allowance: Completely new in this new contract, workers will now be reimbursed up to $125 for boots/shoes for work.
The report stated 62.4% of striking workers had voted "yes" to the final contract. Chew told News 8 that the possibility of permanent replacement workers being brought in was a motivating factor.
Jan. 23, 2023
UAW Workers Ratify Contract with CNH Industrial
According to a Jan. 23 press release from CNH Industrial, striking workers at 2 CNH Industrial factories represented by UAW have ratified a labor agreement and ended a strike that began in May 2022.
The employees voted on, and accepted, a "Last, Best and Final Offer" presented by CNH Industrial after a mediation session conducted by U.S. Secretary of Labor, Martin Walsh.
“I would like to thank our bargaining team, the UAW leadership, and Mr. Walsh, who helped us navigate the complexities of the negotiation process and end the strike,” said Scott W. Wine, chief executive officer, CNH Industrial. “We look forward to welcoming our employees back to work, building the machines that help our customers feed the world and build its essential infrastructure.”
Ag Equipment Intelligence reached out to CNH Industrial for comment and was directed to their press release.
Jan. 20, 2023
UAW & CNH Industrial Reportedly Close to New Agreement
UAW President Ray Curry told the Associated Press in a Jan. 19 article that the union that is "close to reaching another agreement with CNH Industrial that improves a deal rejected by striking workers earlier this month."
Curry said he's hopeful the deal will be reached "within the next week or two," saying, "We believe that there is going to be an offer that’s there that the membership will see in a different light, with adjustments, not the same offer."
Jan. 7, 2023
UAW Workers Reject CNHI's 'Last, Best & Final Offer'
According to a Jan. 7 press release from UAW, CNH Industrial's "last, best & final" offer has been voted down by striking UAW workers.
The press release reads as follows:
UAW members at Locals 180 and 807 who work for CNHI have rejected the last, best and final offer from the company. As the strike continues, the UAW bargaining committee will meet to discuss next steps to take with CNHI.
Ag Equipment Intelligence reached out to CNH Industrial for comment and received the following response:
"CNH Industrial is disappointed to learn that its recently negotiated and improved Last, Best and Final Offer was not approved in the ratification vote conducted by the Union on Saturday, January 7. This Offer for a new contract, which included wage increases of 25% to 38% over the four years, would have allowed the employees and the Company to move forward at the Company’s plants in Burlington, Iowa and Racine, Wisconsin.
The Company strongly encourages the Union to allow the employees to reconsider their position in another vote so that the employees can return to work. While we await the Union’s next step, CNH Industrial remains committed to honoring and meeting the needs and demands of our customers and, therefore, we will continue operations at both our Burlington and Racine sites.”
According to a Jan. 8 report from the Milwaukee Journal Sentinel, around 55% of voting UAW workers voted down the contract.
Jan. 2, 2023
UAW Brings CNHI's 'Last, Best & Final Offer' to Striking Workers
According to a Jan. 2 press release from United Auto Workers, the union has decided to bring CNH Industrial's "last, best and final offer" to its striking workers for a vote.
A Jan. 2 report from WQAD News 8 said workers were expected to vote on Saturday Jan. 7.
Ag Equipment Intelligence reached out to CNH Industrial for comment but did not hear back.
In 2021 when 10,000 John Deere employees went on strike, Deere referred to its third offer to the union as its "last, best and final offer," which James Cooney, an employment law expert at Rutgers University, told the Waterloo Cedar Falls Courier at the time "could signify Deere is at an impasse in negotiations."
“That’s not an agreement with the company when saying ‘Hey, this is our last, best, final offer,’” Cooney told the Waterloo Cedar Falls Courier in late 2021. “A union may take that back to the membership but, on the other hand, may choose not to, especially if it’s perceived as more of a threat. And that’s why there’s probably more going on behind the scenes than certainly I’m aware of, on both sides.”
Nov. 30, 2022
UAW CNHI Strike Hits 7 Month Mark
The UAW strike at CNH, which impacts about 680 workers at the Mount Pleasant, Wis., and over 400 employees at the Burlington, Iowa, plants has been going on for 7 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 Oct 14 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.
Nov. 15, 2022
According to a Nov. 11 report from Milwaukee Business Journal, Yasin Mahdi, president of UAW Local 180 out of Racine, Wis., whose CNH Industrial workers have been striking since May, 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's 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 had made its "last and best offer" in late September, but the union didn't respond because it considered the contract "unacceptable."
Nov. 12, 2022
In CNH Industrial's third quarter 2022 earnings call, held Nov. 8, CEO Scott Wine said the company continues to seek a resolution with striking UAW workers at two of its U.S. factories. Wine also said the costs associated with the strike and future wage increases had been factored into CNHI's financial guidance.
The company is forecasting net sales in its Industrial Activities up 16-18% for the full year 2022.
Oct. 11, 2022
According to an Oct. 3 report from Radio Iowa, U.S. Labor Secretary Marty Walsh said he has been briefed on the ongoing strike by UAW-represented CNH Industrial workers and is "willing to help in any way he can."
“Sometimes both companies and unions reach out to me,” Walsh said to Radio Iowa. “That’s probably the best scenario when that happens because what I try to do is go and mediate the situation.”
Sept. 6, 2022
According to a CBS 58 report from Sept 5., UAW Local 180 President Yasin Mahdi spoke on the lack of progress being made in contract negotiations with CNH Industrial at a UAW Labor Day festival.
"The company has not made any significant movement or strides getting to the end of an agreement," said Mahdi. "I personally don’t think we are any closer today than we were, you know, May 2."
Aug. 24, 2022
According to an Aug. 23 report from Equipment World, Richard Glowacki, chairman of Local 180 and president of the UAW CNH Council said UAW and CNH Industrial are set to return to the negotiating table later this week.
Glowacki said negotiations were broken off on Saturday with expectations of both parties returning to the table later this week.
Aug. 1, 2022
CNH Industrial CEO Scott Wine confirmed in the company's July 29 2Q22 earnings call that the company planned to return to the negotiating table with UAW in mid-August, saying CNHI has "consistently maintained our willingness to meet."
"To support our dealers and customers, we implemented mitigation efforts to keep both facilities operational. We are making good progress and production continues to improve but our main goal is still to resolve this ongoing dispute as soon as possible," said Wine.
July 11, 2022
In a July 9, 2022, report from the Wall Street Journal, Rod Bierle, manager at Iowa Case IH dealer Bancroft Implement, said the UAW-represented CNH workers' strike has negatively impacted equipment wait times.
“The strike has made it worse,” he told the Wall Street Journal. “They need to settle the strike. We’re waiting for tractors.”
Bierle also said Bancroft Implement had increased used equipment purchases as new equipment becomes harder to get from CNH Industrial. “We’re using a Band-Aid to take care of these guys,” he said. “Fortunately, there’s a lot of used equipment in the U.S.”
UAW told the Wall Street Journal in the report that "the strike is affecting production at other plants as well, because they use components from the plants on strike."
June 28, 2022
In response to a May 18 article from Farm Equipment [How Will the UAW Strike Impact Customers' Purchasing Plans?], a CNHI, UAW-represented employee from the company's Burlington, Iowa, factory told dealers the workers would not lose the contract and alluded to a drop in manufacturing quality now that non-union employees are working in the striking factories.
The comment reads as follows:
I work for CNH, I'm a member of UAW out of Burlington Iowa. To the dealers that think that this ain't an effect on equipment and your product that is sent from Racine and Burlington. You got another thing coming to you if you think this supply or equipment ain't going to affect you. You've already been waiting like some said 2 months and there isn't no orders until the fall. This is going to affect you in the long run even if we got back today June 22nd. You're still going to wait for your equipment, because there's other people in front of you. And if you want any equipment from Burlington and Racine which produced the best equipment out of the rest of the non-union plants for CNH. You go ahead and grab one of those scab combines in auger heads. Then we'll see how long you wait again for that to be fixed because it wasn't built by UAW that puts the love into the equipment that your buying that we produce best product out there. Good luck on your weight. And believe me customers will go to other places it's already happening. Thought this strike was going to be over in a month. This might go all the way till November. We ain't losing this contract and we're not folding. Good luck on getting your equipment and parts from scabs.
June 22, 2022
According to a June 17 report from the Milwaukee Journal Sentinel, UAW Local 180 President Yasin Mahdi stated he believes CNH Industrial will begin bargaining directly with UAW workers vs. bargaining with the union itself.
"I anticipate the company locking us out,” Mahdi told the Milwaukee Journal Sentinel. “I anticipate the company upping the ante and bargaining with my members individually vs. going through the elected officials that the membership elected to represent them.”
Mahdi also stated the union may begin approaching farmers and dealers to "inform them of their situation" regarding equipment purchases.
"And I don’t foresee them [farmers] wanting to buy a product that wasn’t made by somebody that knows what they’re doing," said Mahdi.
June 22, 2022
According to a June 22 report from Unite the Union, over 500 workers at CNH Industrial's Basildon facility in the UK will stage several day-long strikes over the next 2 months.
Strikes are set for June 30, July 8, 11, 28 and 29, and August 26 and 30. More strike will be scheduled if contract disputes are not settled in that time frame.
The report stated that, "The workers are striking over a below inflation two year pay offer of 5.6% for the first year and between 1.8% and 3% for the second depending on CPI inflation. Unite says the offer is a real terms pay cut when the real rate of inflation, RPI, is at 11.7% and expected to climb."
The UK strike announcement follows two months of strikes at two UAW-represented CNH Industrial factories in Iowa and Wisconsin.
The article quotes Unite regional officer Michelle Cook as saying, “Unite’s CNH Basildon members send solidarity to their UAW brothers and sisters striking for better pay and conditions in America. Our members are rock solid in their determination and the only way these strikes will stop is if CNH puts forward an acceptable offer.”
UPDATE: A June 30 report from Echo News stated the UK strike had been canceled as the union "announced a new pay deal had been agreed with the bosses and workers."
June 14, 2022
Ag Equipment Intelligence has acquired photos of a memo sent to UAW-represented CNHI employees explaining details of the manufacturer's last contract offer on May 19.
The memo states CNHI's last offer on May 19 contains "12-15% wage increases depending on job classification" for "skilled trades" and an 18% wage increase over 3 years for "non-skilled" employees. The proposed contract would run for 3 years, something CNHI has reportedly pushed for during negotiations.
The offer also includes 4 different healthcare plans for employees to choose from in 2023 and includes a breakdown of the single and family plans by premium, CNHI's contributions and deductibles.
A June 13 report from The Hawk Eye stated, "A full-page ad published in the May 31 edition of The Hawk Eye featured a letter to workers on strike encouraging them to ask their local union representative for a copy of the proposal."
June 14, 2022
UAW Local 807 President Nick Guernsey told Ag Equipment Intelligence on June 13 he was headed back to the negotiating table with CNH Industrial and that it was the union's turn to make an offer. "Our stance has been pretty much the same since the beginning," he said. "We're still taking the same stance as far the demands. I'm not really sure how things are gonna go this week."
Guernsey informed Ag Equipment Intelligence on June 14 he was already ready to return to Burlington, Iowa, and that negotiations had not seen much movement.
June 9, 2022
According to a June 8 report from AP News, Senate Democrats, including Tammy Baldwin and Bernie Sanders, have penned a letter to CNH Industrial CEO Scott Wine asking him to consider offering higher wages to the company's striking UAW workers.
“If CNH can afford to provide you with a $9.2 million signing bonus and nearly $22 million in total compensation for one year of work — nearly 8,000 times the raise you are offering some workers — it can afford to pay all of your workers better wages and better benefits,” the senators wrote to Wine. “If CNH can afford to spend over $100 million on stock buybacks over a six-month period to enrich its wealthy shareholders, it can afford to treat all of its workers with the dignity and the respect that they deserve.”
The senators also reportedly stated in the letter that, "the lowest-paid workers at the plants in Racine, Wis., and Burlington, Iowa, would receive raises of $1.33 an hour" in CNHI's latest offer, which they claim would not cover CNHI's proposed $6,400 health insurance deductible.
June 9, 2022
A June 7 press release from United Auto Workers stated the union will raise its weekly strike for its members from $275 to $400 a week.
The statement reads as follows:
After a meeting of the UAW International Executive Board, the UAW announced today that it has increased its weekly strike pay for members from $275 per week to $400 per week. Eligibility for weekly benefits will still begin on the 8th day of a strike. In addition, the UAW eliminated a provision that a member may not receive UAW strike benefits if the member received unemployment benefits.
“UAW members who strike are fighting to hold their employers accountable,” says UAW President Ray Curry. “Our striking members and their families deserve our solidarity, and this increased benefit will help them hold the line.”
June 2, 2022
Bill Riechmann, CEO at 4-store Illinois John Deere dealership Riechmann Bros., says there’s no business opportunities for them in the ongoing CNH Industrial/UAW strike, because they don’t have enough equipment.
“We’re limited in the amount of equipment we have. We would never jeopardize the customer relationships we’ve built to try to get a Case IH customer,” he says. “We need to supply John Deere customers. So, opportunities to switch somebody over are really tough right now.”
Riechmann adds that during the John Deere strike last fall, the impact on the parts supply chain was the No 1 problem for their business. The current UAW strike at CNH Industrial facilities does not include any CNHI parts depots.
In a Farm Equipment survey conducted May 3-4, more than one CNH dealer mentioned the possibility of their customers moving on to other brands if unable to get equipment from them. “Customers will go to whomever has the equipment they need/have to have. No inventory, no sales,” said one New Holland dealer.
May 26, 2022
According to a May 20 report from Labor Notes, UAW workers want CNH Industrial's three-tiered pay system, as well as the wage gap between union and non-union CNHI plants, gone.
"At the core of the strike is the company’s three-tier pay system. Workers hired before 1996 make $6 to $8 more per hour than those hired after 2004; those hired between 1996 and 2004 earn somewhere in between. Workers want to see at least the bottom tier abolished," the report stated.
The report also quoted UAW Local 807 President Nick Guernsey in an interview with the Hawk Eye, saying CNHI's non-union plants make an estimated $5.50 more per hour than UAW workers.
The Labor Notes report also addressed the workers' concerns with CNHI's attempts to reorganize the workers' schedules.
"The company wants to rearrange schedules into what it calls a 'continental shift' structure, where workers would flip back and forth between day and night shifts and no longer get Sundays off, to make the plants operate 24/7," the report said.
"It takes five years to reach two weeks of vacation time, and 15 years to earn a third. And a lot of that vacation time gets gobbled up by the plant’s annual shutdowns, rather than used at a time of workers’ choosing."
May 26, 2022
Both CNH Industrial and United Auto Workers have released statements regarding the status of their contract negotiations after it was reported that both parties had left the bargaining table. CNH Industrial emailed the following statement to Ag Equipment Intelligence on May 25.
Last week, CNH Industrial and the UAW resumed negotiations. After meeting multiples times on Tuesday (May 17) and Wednesday (May 18), the Company presented the Union with an all- encompassing, comprehensive document, which addressed all open and outstanding issues. 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 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.
On May 25, UAW Vice President Chuck Browning released its own statement, which reads as follows:
Today CNH Industrial released a statement regarding the status of contract negotiations with the UAW. In response to the company’s statement, the UAW provides the following assessment of negotiations.
CNH Industrial entered negotiations with a predetermined bargaining strategy based on the principles of fear and intimidation. After a month of offering little resolve to bargaining issues submitted by UAW members themselves, the UAW utilized the authority granted by an overwhelming majority of our membership and took strike action against CNH Industrial. The company immediately deployed a scab workforce that they assembled prior to the contract deadline in anticipation of a strike that was quite predictable based on their posture at the bargaining table.
It is the hope of the company to starve out UAW members on the picket lines to accept an inadequate collective bargaining agreement. Unfortunately for CNH Industrial, our members have displayed great support and solidarity for their issues and negotiating team throughout the bargaining process.
Currently, UAW Local Unions across the country are conducting gate collections to help sustain our UAW CNH members throughout their struggle for a decent living. I could not be prouder of our striking members at CNH for refusing to be pushed around by a profitable corporate giant that has chosen to spend their money resisting a fair agreement instead of providing one to their loyal employees.
In summary, the company’s latest proposal falls short of our member’s bargaining agenda. Our bargainers are meeting with our members and communicating the areas of concern that remain unresolved.
I understand the company’s frustration that their bargaining strategy to force an inadequate contract down our member’s throats remains ineffective. Additionally, it appears based on their statement, the company seems just as disappointed in the determination of the UAW negotiators as we are with the content of their proposal.
Regardless of what CNH Industrial calls their most recent proposal, they are obligated to continue bargaining with the UAW, which they understand. Their most recent statement is merely an effort, no doubt recommended by a union busting consulting firm, to avoid sincere bargaining with the hopes of getting members to cross the picket lines or accept an inadequate contract, to which neither will transpire. The only path to ending this labor dispute is through reaching a fair agreement that is ratified by our UAW membership. The UAW remains committed to reach that end.
May 25, 2022
Negotiations between CNH Industrial and United Auto Workers (UAW) have hit a standstill, according to UAW Local 807 President Nick Guernsey.
“We’d started making some progress, and both sides seemed like they wanted to put an end to this. We gave a clear path Wednesday night [May 18] on how to end it,” Guernsey told Ag Equipment Intelligence during a May 20 phone interview. “Thursday morning, CNH Industrial handed us a proposal, and it was nowhere near what we talked about. So we decided at that point, there was no sense in wasting anybody’s time.”
What’s Holding Up Negotiations? Guernsey says wages, healthcare options, over time and vacation time have remained hurdles during negotiations with CNH Industrial. He said part of CNH Industrial’s proposal included removing “headcount” and “plant closure” language from the contract, which address CNHI’s ability to close its UAW-represented plants and how many people they need to employ at once.
“The plant closing language just states that during the life of the agreement, they agree not to close the plant. It’s been standard practice for years,” said Guernsey. “The head count language means we have to keep a certain number of people, say 300, employed at all times at the factory. That was one of the first things they’d taken out on their very first proposal.”
Guernsey said the union was attempting to add a form of cost of living adjustments (COLA) in the new contract similar to what Deere employees won last fall but that CNHI was “100% against it.”
Guernsey did state the union was not planning to call off the strike without a contract, contrary to a rumor previously covered by WSWS.
3- vs. 6-Year Contract. Guernsey always said CNH Industrial is looking for a 3-year contract vs. a 6-year contract, something he says isn’t standard practice.
“Everybody’s got their own take on this,” he said. “Either they’re banking on the economy crashing in a couple of years, or they do have plans to close one or both the plants. In our eyes, this is not even on the table as an option.”
May 23, 2022
According to a May 23 article by Michaele Niehaus of The Hawk Eye, talks between United Auto Workers (UAW) and Case New Holland (CNH) 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 is talking," Nick Guernsey, president of UAW Local 807, told The Hawk Eye on Monday as the strike by about 430 unionized employees at CNH'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."
The article states that Guernsey and UAW representatives were in Madison, Wis., last week to meet with CNH as the parties resumed talks for the first time since the May 2 strike.
The article notes that CNH’s proposal included a raise of 8.5% that averages to 6% for the next 3 years, but the insurance package would come with higher per-worker contributions and higher deductibles.
May 20, 2022
According to a May 18 report from The Hawk Eye, CNH Industrial and United Auto Workers have been in Madison, Wis., since Monday working on a new labor contract.
UAW Local 807 President Nick Guernsey told The Hawk Eye he didn't expect an agreement to be reached by the end of the week, but that progress is being made.
"We're going in a positive direction," Guernsey told The Hawk Eye. "As long as both sides are talking, I'm pretty positive we're going to get in a direction we need. It just might not happen this week."
CNH Industrial reportedly agreed to begin talks again after a written proposal came from UAW on May 13.
May 7, 2022
According to a May 7 Facebook post from UAW Local 180, CNH Industrial has notified United Auto Workers that it will cancel its UAW employees' healthcare plans effective May 13. Ag Equipment Intelligence has reached out to CNH Industrial to confirm this.
May 6, 2022
A recent survey from Farm Equipment, conducted from May 3-4, found that 79.7% of CNH dealers (both Case IH and New Holland dealers) forecast some degree of lost new wholegoods revenue if the ongoing strike lasts 30 or more days.
Over 40% of surveyed CNH dealers forecast a new wholegoods revenue loss of 1-10% should the strike last 30 days or more, while 21.3% forecast a loss of 11-20%. A little over 10% of dealers forecast a loss of 21-30%, with just 5.3% forecasting losses of 31-40% and 2.1% forecasting a loss of 41-50%. A little over 20% didn't project any new wholegoods revenue loss.
Only 28% of surveyed CNH dealers said they had increased their equipment and/or parts orders leading up to the strike.
Dealers of all brands were asked to agree or disagree with a series of statements related to the strike. The statement that saw the most agreement from dealers asked if they agreed that concessions made at this point in the strike would create price increases and offshoring of production in the future, where 91.2% of dealers agreed. Another 76.9% of dealers agreed that CNH Industrial would make a good-faith effort to resolve the strike.
Just under half (47.9%) of all surveyed dealers said they believed the strike would be resolved shortly, while just 23.8% said they believe striking workers deserved what they are seeking in negotiations.
When looking at only responses from Case IH and New Holland dealers, 51.9% said they believe the strike will be over shortly and 83.5% said they believe CNHI will make a good-faith efforts in negotiations.
For additional information on the survey results, click here.
For a full list of dealer commentary from the survey, click here.
May 5, 2022
During Titan International's 1Q22 earnings call, when asked about the effects the ongoing strike by UAW CNH Industrial workers would have on Titan International following the announcement of its long-term agreement with CNHI in March, CEO Paul Reitz stated he was confident in CNHI's leadership and wasn't concerned about adjusting production schedules.
"I have a lot of confidence in CNH's leadership, but from Titan's side, you look at where we sit, where we have a strong order book, the demand we have for tires — we can adjust our deliveries. At this point I don't see us adjusting our production schedules but really adjusting our allocations and our delivery schedules as CNH works through their situation if needed.
"At this point, I'm not going to draw conclusions. Again, it's day two, but if needed, we can adjust. I don't see that having a significant impact from how we continue to operate day-to-day."
May 4, 2022
In a May 3 phone interview with Ag Equipment Intelligence, United Auto Workers (UAW) Local 807 President Nick Guernsey said he told his members to expect to be out of work for 3-6 months.
“I think what’s going to get CNH Industrial back to the table is when they start losing money, and they’ll probably start feeling it at 4 weeks. I’ve told my membership to expect CNHI to keep us out for 3-6 months,” said Guernsey.
CNHI CEO Scott Wine stated in the company's 1Q22 earnings report May 3 that the company was willing to meet the union at the bargaining table "at any time."
Ag Equipment Intelligence sent the facts of Guernsey’s following statements to CNH Industrial to verify their authenticity but did not receive a response.
Replacement Workers & Productivity. On May 2 at noon, around 1,200 CNHI workers represented by UAW walked out of the manufacturers’ Burlington, Iowa, and Racine, Wis., factories after CNHI and UAW failed to reach an agreement on a new labor contract. Guernsey said as his members walked out, replacement workers walked in.
“They had replacement workers in town a week before the contract expired. So in my mind, this was a premeditated strategy,” said Guernsey. “We have 440 members in our facility, so they’re probably going to bring in about 1,000 people. Sometimes things struggled to get done in a perfect environment, and they’re bringing in people who have never touched this stuff.”
Guernsey said when UAW employees were working at the Burlington factory, their goal was to ramp up production from 26 to 30 tractor loader backhoes per day.
“I do know CNHI is paying new workers a much higher wage than what we were even asking for, along with bonuses and extra money for their salaried employees,” said Guernsey.
What Halted Negotiations? As the president of one of the local unions represented in the contract, Guernsey was present during negotiations with CNHI and said the two parties “weren’t making a lot of headway” when the union set a strike deadline the morning of May 2.
“We had a proposal ready Sunday night at about 9:45 PM. That meeting lasted maybe 5 minutes. Words were said by both sides that I’m not going to repeat,” said Guernsey.
He said there were several issues at play when negotiations hit an impasse over the weekend, including CNHI union jobs paying less than CNHI’s non-union factory jobs.
Guernsey said he was not able to disclose details of the union’s proposed contract.
What Happens Next? Guernsey said the union will pay UAW workers $275 per week in strike pay if they perform their strike duties and will provide them with “a major medical plan with no copay.” He says that extends to new hires that “signed a union card and chose to walk out the door with us.”
During UAW workers’ strike at Deere’s factories last year, John Deere stated it would “continue providing healthcare for all our UAW-represented production and maintenance employees.”
“At the end of the day, neither side wins on a strike. And the customer suffers,” Guernsey said.
May 3, 2022
During CNH Industrial's 1Q22 earnings call on May 3, CEO Scott Wine stated that, after several weeks of negotiating with United Auto Workers (UAW), when the previous labor contract expired, "we remained very far apart on important issues."
"The union's decision to strike was disappointing," said Wine. "We had several weeks of constructive dialogue, but when the contract expired, we remain very far apart on some important issues. The very nature and purpose of a strike is to disrupt our business and create concern amongst our customers. Despite that intent, CNH Industrial is committed to reaching an agreement with United Auto Workers."
Wine stated the company was willing to meet the union at the bargaining table "at any time" and intended to continue operations through a contingency plan "that should minimize the impact on our operations."
When asked during the Q&A portion of the call if the company's projected increase in production levels was contingent on the strike ending, Wine declined to confirm if it was, stating the following:
"The strike is very unfortunate, but we knew it was a possibility. And it's very unfortunate. We certainly want to get our team in Racine and Burlington back as quickly as we can. But we built our plan so that we can operate. And really, it's 2 of our 38 plants. It's overall, I think, well below 10% of our global production. And we are continuing to operate the plant. I would not say the forecast we just provided was contingent upon any aspect there. We plan for higher labor costs. We knew there was labor risk, and we planned for those contingencies, and we'll continue to work as quickly as we can towards a negotiated settlement that's beneficial of all parties."
May 2, 2022
Mark Foster, former vice president at 17-store Case IH dealer Birkey’s Farm Store, said if he were back sitting in a dealership right now, he'd be very cautious of his expenses during the strike United Auto Worker CNHI employees called today during a phone interview with Ag Equipment Intelligence.
"I would make sure I was watching every nickel and dime that I could, because if you don't have equipment to sell, it's a domino effect. And it will affect your bottom line. I would be very cautious with my expenses that I could control."
Foster added that, considering CNH Industrial's profitability, he believes UAW workers will do whatever they can "to enhance their position."
"Reflecting back on the Deere strike that happened not too long ago, with the amount of profit Deere made, I was kind of surprised it was settled as easily as it was.
"With the CNH Industrial strike, I'm sure that Case has done well financially. And I would say the workers want their share, and anything that they can do to enhance their position, I think they're going to try to do it, and that's what they're doing right now with this strike."
May 2, 2022
Ag Equipment Intelligence reached out to CNH Industrial for a statement regarding the strike called today and received the following response:
CNH Industrial is disappointed that the parties were unable to reach an agreement and that the UAW has decided to call a strike. We recognize the Union’s decision creates high anxiety among our represented employees in Burlington and Racine, as well as our other employees, our customers, and our community. We remain committed to reaching an agreement, and we are working to resolve this issue. We will continue to negotiate in good faith and trust that the Union will do the same.
May 2, 2022
According to a news release from UAW, CNH Industrial workers in Racine, Wis., and Burlington, Iowa, have gone on strike as of 12PM CST, May 2, 2022.
The press release reads as follows:
UAW CNHi members struck at noon, May 2, after the company failed to present an agreement that met member demands and needs.
“Our members at CNHi strike for the ability to earn a decent living, retire with dignity and establish fair work rules,” said Chuck Browning, vice president and director of the UAW’s Agricultural Implement Department. “We stay committed to bargaining until our members goals are achieved.”
UAW President Ray Curry said the almost one million UAW retirees and active members stand in solidarity with the striking workers at CNHi. “All UAW members are united with UAW CNHi workers,” Curry said.
Curry noted that, “UAW CNHi members have worked through the pandemic after the company deemed them essential, to produce the equipment that feeds America, builds America and powers the American economy. They are a strong united union voice on the picket line they can make a difference for working families here and throughout the country.”
Over 1,000 members at CNHi locations in Racine, Wis., and Burlington, Iowa, set up pickets. “Our members are working in solidarity and ready to hold out and fight for a contract they believe meets their needs,” said Ron McInroy, director of UAW Region 4. “Our members and their families appreciate the community support they have already gotten. Strikes are never easy, but the fight for better working conditions at work is worth it.”
A Facebook post from UAW Local 180 in Racine, Wis., posted shortly before noon, reads as follows:
By order of Vice President Chuck Browning, Region 4 Director Ron McInroy and UAW/CNH Council President Rich Glowacki the UAW has officially called a strike at 12 noon today, when the lunch bell rings walk out in an orderly manner, be law abiding citizens do not sabotage equipment or put yourself in jeopardy.
May 2, 2022
According to a news release from UAW, "after agreeing to extend the current collective bargaining agreement hour by hour on May 1, UAW CNHi bargainers have set a strike deadline of noon (Central Time), May 2."
May 1, 2022
According to a press release from UAW posted to UAW Local 180's Facebook page, United Auto Workers and CNH Industrial have agreed to extend the current labor contract "hour-by-hour as the parties continue to make progress towards reaching a tentative agreement."
The Facebook post included the following caption along with an image of the official press release:
We are extending the contract hour by hour. We are close but we’re not there yet. There will be more information in the very near future. Report to work on Monday as normal until you hear different from the leadership.
April 28, 2022
A recent survey from Farm Equipment found that 64.8% of surveyed dealers indicated they were worried about the impact ongoing contract negotiations between CNH Industrial and United Auto Workers could have on their business. Some 25.4% of surveyed dealers were not concerned, and another 9.8% were unsure.
In their commentary, many dealers referenced ongoing supply chain issues in the ag equipment industry, stating a strike could make the situation even worse.
"Supply chain is backed up now, and we are not getting equipment in a timely manner. If they end up striking, this will make that situation even worse for us and our customers," said one dealer.
"[We are] 8-9 months behind on production now, I can't imagine a strike would help much. Although, if it is short-lived, maybe it will give some time for supply chain issues to catch up," said another dealer.
One non-CNHI dealer saw the strike as a potential business opportunity, saying, "John Deere went through a strike and didn't miss that much due to the supply chain issues that continue to impact the business. We may pick up some business, because customers will be looking for items that cannot be sourced through their New Holland or Case IH dealership."
One New Holland dealer stated they were more concerned about CNH Industrial itself than the strike, saying, "As a New Holland dealer, I am more concerned with leadership and direction or lack thereof within CNH."
April 11, 2022
UAW Local 180 and 807 members passed a strike authorization over the weekend in the union's ongoing negotiations with CNH Industrial. UAW Local 807 posted on Facebook that 97.4% of its members vote for the strike. A representative for UAW Local 180 confirmed in a phone interview with Ag Equipment Intelligence that the local's members had voted in favor of strike authorization but did not give disclose the voting results.
The vote does not call a strike but instead gives the union the ability to call a strike on the workers' behalf should they feel it necessary.
The union’s contract covering Case IH workers will expire on April 30, 2022.
March 8, 2022
In a Feb. 22 interview at CNH Industrial's Capital Markets Day, Derek Neilson, president, Agriculture at CNH Industrial, says the company has begun negotiations with UAW regarding the upcoming labor contract and has a good relationship with the union.
When asked about the potential for a work stoppage and the contingencies the company would have in place, Neilson said the company had analyzed what the contingencies might look like and added, "But ... we're still confident we can have a productive and positive solution with UAW. So at this point, we're not expecting to implement any counter measures."
Feb. 17, 2022
Associate Professor at Loyola University Chicago Peter Norlander said in a recent interview with Ag Equipment Intelligence that many unions engage in what's called "pattern bargaining," where a successfully ratified contract will be taken to other contract negotiations to win other workers the same benefits. He believes the same may happen with the contract that UAW John Deere workers ratified in late 2021.
"What UAW is going to try to do is use the Deere contract as a pattern for other negotiations," he said. "That's historically what they do. It's called 'pattern bargaining,' and whatever they get from the first employer, who's up for negotiation — and they tend to be strategic about who they want to negotiate with first — they then try to repeat the same deal in the companies in the same industry.
"The reason they want to do that is they don't want these companies competing against each other based upon lower wages. So they want to take wages out of competition. And the companies then compete based upon product quality or service or relationships with customers.”
He adds that this same mentality can even affect non-union workplaces, where UAW can show non-union workers what they've won with Deere and offer to win those other non-union workers the same benefits. Those employers may also be inclined to improve their own workers' benefits to avoid a union coming into those factories.
"Even in a non-union environment, such as at Kubota, they're affected by the union contract too," he said. "So they're going to see, ‘Okay, workers got this deal with a union. We need to make sure we're offering something not too much worse, or we're going to have a union in our workplace.’
“And you can imagine the UAW can tell the workers, ‘Look at what we got from Deere.’ And so the effect of a contract can change non-union as well as union workplaces."
For a more detailed explanation of how union negotiations work, click here to listen to a Farm Equipment interview with Norlander exploring the topic.
Feb. 10, 2022
In this episode, we discuss the upcoming contract negotiations between CNH Industrial and the United Auto Workers for two of the OEM's plants.
Feb. 10, 2022
According to statements from union officials, United Auto Workers will begin negotiating a 6-year contract with CNH Industrial in early April of this year. UAW International Director of Public Relations Brian Rothenberg confirmed in an email that the union’s contract covering Case IH workers will expire on April 30, 2022.
Workers at two factories are covered under this contract: the Burlington, Iowa, plant which manufactures tractor loaders, backhoes, bulldozers and corn and auger heads and the Racine, Wis., plant which manufacturers the Magnum series tractor. Workers at the Burlington factory are represented by UAW Local 807 and those at the Racine factory are represented by UAW Local 180.
Farm Equipment spoke with UAW Local 807 President Nick Guernsey for additional details about the upcoming contract, which he says will cover about 1,200 employees. He stated the local unions will begin prepping for negotiations in mid-March, with formal negotiations beginning in early April.
Guernsey says the outcome of the UAW strike at John Deere factories last fall will impact what the unions looks for in the Case IH contract.
“Obviously, with John Deere, it kind of put us into a different position. They hit it out of the ballpark," he says. "They did something that probably we’ve never seen and may never be seen again. So, what we’re looking at, at this time, for our contract is we want to maintain industry standards. We want to be competitive within the industry, and the only way to do that is to up some of the things that were lacking in the contract, wages being one, and benefits.”
Ag Equipment Intelligence reached out to CNH Industrial about the negotiations and did not receive a response.
2021 Deere Strike
The upcoming negotiations between CNH Industrial and UAW follow a month-long strike that occurred last fall as 10,000 UAW-represented John Deere workers rejected two tentative labor agreements before ratifying the third by a vote of 61% to 39%. The first agreement was rejected by 90% of UAW John Deere workers. During the strike, Deere was granted an injunction against striking workers at certain factories to limit their picketing and at one point ended negotiations entirely.
A November 2021 survey from Farm Equipment found roughly 54% of dealers at the time did not support the strike, while 37% said they did and 8.5% weren’t sure.
In the earnings call for John Deere's fiscal year 2021 earnings report, John Deere execs shared details of the UAW strike’s financial impact on the company. Director of Investment Relations Josh Jepsen said, “Over the six-year contract, the incremental cost will be between $250 million and $300 million pretax per year, with 80% of that impacting operating margins.” He adds that Deere expects equipment operations for the coming first quarter to be unchanged year-over-year, as “missing a few weeks plus of production will neutralize some of the benefits … of ramping up to higher line rates in December and January.”
Click here for an in-depth timeline of how the 2021 John Deere strike unfolded.
2004 CNHI Strike
CNH Industrial last faced a strike with UAW workers back in 2004, which a 2004 report from FarmProgress stated was centered around “the company's desire to align union worker compensation and health care more closely with the company's many non-union employees.” The report stated that, at the time, around 650 of CNH Industrial’s 10,000 North American employees were represented by a union.
"Since CNH began discussions with the UAW almost a year ago, we have had one objective in mind: to achieve a contract that is fair and equitable for all parties, enabling us to be competitive in the global marketplace we serve," said CNH Chief Negotiator Tom Graham said in the 2004 FarmProgress report. "Our final proposal encompassed the changes needed to begin to bring labor costs at our UAW-represented facilities from double the average cost levels of our other North American manufacturing facilities to an acceptable level."
Oct. 21, 2021
While discussing the status of UAW John Deere workers' strike, Brian Rothenberg, UAW director of public relations, stated Caterpillar’s contract is also up for renegotiation in 2023 and both Case IH and New Holland’s labor contracts expire in 2022.