CNH Industrial plans to lay off more than 200 out of the 660 workers at its Racine, Wis., facility with the intent of reducing costs by $150 million as part of a company reorganization, according to a statement from Senator Tammy Baldwin addressed to CNH Industrial CEO Scott Wine. 

"The fact that this decision comes so shortly after you signed a new collective bargaining agreement with these workers raises concerns that this layoff was made as retribution for the workers daring to go on strike last year to secure the gains in that contract," Baldwin says. "I suspect that the majority of the burden of the $150 million in cost reduction you have planned will fall almost entirely on the shoulders of your unionized workforce in the United States, particularly in Wisconsin." 

In January 2023, more than 1,000 United Auto Workers (UAW) in Racine, Wis., and Burlington, Iowa ratified a new contract for Locals 180 and 807 after a 260-day strike, according to a BizTimes article. The new contract included wage increases, shift premium increases and classification upgrades among other improvements.

As per Wisconsin law, companies that reduce their workforce by more than 25% are required to give their workers, the Department of Workforce Development (DWD), their collective bargaining representatives and local officials 60 days notice, says BizTimes, which Baldwin says CNH failed to do.

Baldwin also criticized the legitimacy of CNH's cost-saving measures by citing the "company's recent strong financial performance" from its annual report. According to BizTimes, CNH reported revenues of $24.7 billion in 2023, and net income was reported at $2.3 million. Rich Glowacki, chairman of the bargaining committee with UAW Local 180, has filed a complaint with the equal rights division of the Wisconsin DWD for himself and on behalf of other union members, according to a Milwaukee Journal Sentinel article. Glowacki says CNH plans to reduce the number of employees to 150-170 by 2026Baldwin's letter was also shared with DWD secretary Amy Pechacek "should her department decide to investigate the matter," the letter said. A public WARN notice has not been filed with the Wisconsin DWD as of April 17, 2024.

Ag Equipment Intelligence has reached out to CNH Industrial for commentary and will update this story with any response it receives.

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