United Auto Workers Overwhelmingly Vote Down Truck Maker Oshkosh's Contract Offer

DETROIT (John D. Stoll) - United Auto Workers members overwhelmingly voted down a new five-year contract offer from Oshkosh Corp on Friday despite the company's offer of a signing bonus and raise to offset higher health care costs, according to the company.

The current contract, covering more than 3,000 employees in northeast Wisconsin, was set to expire at midnight.

A new contract proposal from Oshkosh was put on the table as the heavy vehicle maker faces uncertainty due to budget constraints at the Department of Defense, which is Oshkosh's biggest customer.

Oshkosh and the UAW -- its biggest union -- are expected to now head back to the negotiating table on a revised deal that will likely omit a sizable signing bonus.

The offer the UAW rejected on Friday included an 8 percent raise over the life of the contract, and a $2,000 signing bonus. In addition, Oshkosh called for a four-fold increase in monthly health care premiums for families.

Oshkosh spokesman John Daggett said late on Friday the $2,000 bonus is no longer valid when the contact expires at midnight.

Contract talks had been tense as workers and local union officials complained the deal was not generous enough, and that language in the contract was unfavorable to hourly workers.

"We are obviously disappointed because we felt we had offered a very comprehensive proposal considering today's market conditions and the proposed budget cuts in the Department of Defense," Daggett said in an email to Reuters.

He said the company has accepted an invitation from the union for a meeting, details of which are still being worked out. UAW officials were not immediately available for comment.

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[blood1]

07:49 AM on 10/04/2011

Basic Math: 8% raise over 5 years. 1.6%/year (if divided equally). Then there is an increase in the cost of healthcare cost to the employee. According to many reports healthcare premium increases of 10% for 2012 (although CT has told Aetna NO and only allowed premium cost increase of 3.2%). So anyway, anyone does the math - this contract essentially means that the generic employee will lose money under this contract.

Willful ignorance by some to whine about Unions?

Would you be willing to accept a contract with your employer that guarantees employment for the next 5 years if you are would lose money because your annual raise will not cover your increased cost for healthcare coverage?

Rather than a bunch of knee-jerk reactions, why not engage your brain and think before you rant.

[randytut]

06:26 PM on 10/03/2011

The host is not dry yet so the union leech feeds on.

[jJohnson1]

05:56 PM on 10/03/2011

I'm going to repost an answer i gave to a statement about u.s.a unions and job growth vs. european maybe it will shed some light on some of the other statements on here.

I actually worked for GM as a Contract communications dir. from 2005-2007 I believe i have a little more insight and information as to what happens in the global operations of GM and the auto makers of detroit. My position was to strengthen GM sales in eastern europe so i had an intergral role in the overseas operations. splitting half of each month in Warsaw, PL.
I happen to know that 63% of the retiree costs are white collar and that GM spends over 20 million a year to have statistical groups come and anylize costs to use against the unions at negotiation time. I also know that GM has two stock holdings GM and GM international that are traded on different markets allowing GM to show different profit margins it really makes a difference since Buick is the number one selling car in the worlds fastest emerging market China. As for unions in europe it depends on the country and the political movement a great example is Poland which the controlling government party is the Solidarity party a strong labor positive group and the lists of companies building factories there is amazing actually ill show you.
http://amcham.pl/index.php?mod=members&m=companies&PHPSESSID=aa2f65341870df2d2cd80cad7fbb1ccc

[Morgantheaxe]

11:37 PM on 10/03/2011

Can lead a rightwinger to facts but cant make him stop giving you a blank stare of confusion.

[satyrday]

02:51 PM on 10/03/2011

Oshkosh somehow beat BAE and General Dynamics for the last major ground vehicle contract. Now we see why. Time to pony up and pass out the benefits to those who have created your success, Oshkosh.

[JPMac]

02:15 PM on 10/03/2011

And they wonder why union membership is down, these companies pay them the wages and all the benefits they want and they go out of business or move out of the country!!! At that point UAW stand for You Ain't Working!!!

[barkingcat]

04:20 PM on 10/03/2011

No; that would be "YAW," not "UAW"...

[Morgantheaxe]

11:39 PM on 10/03/2011

You do realize that the retirement overhead that plagues us automakers isnt due to the blue collar line workers?? Its the sweet management retirement packages that make up more than half that expense. Id love to see how much is actually just drag put on the company by execs alone.

[Mister Grumpy]

01:38 PM on 10/03/2011

Actually it appears that the union leadership thought the package was good. Otherwise they would not have brought it to the rank and file to vote upon.........

As I am not a member of this union...... one has to wonder what is the mindset of its membership...... Unemployment over 10% in many locations and those that have found jobs are many times making less than they were in their previous positions......

While an 8% increase over five years may not be great........ its still better than what many are receiving today........

And I would not blame the company if they chose to move their production to another state.....

[humilityisrare]

01:35 PM on 10/03/2011

It would appear that the realities affecting this company are of no concern to the UAW.

[goolfballl]

01:21 PM on 10/03/2011

The union said the offer generous, but not generous enough. Greed at it's finest.

[Moxo]

01:52 AM on 10/04/2011

Nope - it was management that got greedy. They under bid their nearest competitor by 30% and now can't make money on the contract.

They were hoping the Arny, which gets its funds from the tax-payer, would bail them out of the financial mess they created.

Instead they elected to copy Communist Chinese business practices and make the workers pay.

[Slow Turning]

12:54 PM on 10/03/2011

OshKosh has cut a fat hog for a decade creating bomb resistant vehicles for the pentagon. The Pentagon budget doubled in those ten years, and american taxpayers have basically been writing blank checks to this company.

How much profit do they need?

Their workforce are the people who make these taxpayer funded blank check payments into deliverables. OshKosh is in no position to cry poor mouth. They should pay their workers well, since they are instrumental in the company's success, and like any business, simply lay off the staff it doesn't need if demand falls.

I can assure you that OshKosh's bean counters will keep the company's P&L statement looking like it needs to for shareholders.

If slow times in the war business are coming for defense contractors, good.

[dukeitout]

12:21 PM on 10/03/2011

Why didn't the company and the union support a single payer government run health care system a couple years ago? A single payer system would remove health care costs from the concerns of the negotiations? Oh yes, why didn't the President do more to promote a single payer system?

[satyrday]

02:42 PM on 10/03/2011

Filibusters.

[Benny Belloes]

03:04 PM on 10/03/2011

Unions have always supported single payer healthcare. Unions know that it would make US products more competitive with the likes of Japan where healthcare is provided by the government. The government who cares for its citizens.

[oilfield]

04:16 PM on 10/03/2011

who do you think will end up paying for single payer? do you think the magic money fairy is going to pay? or do you really think the costs will actually go down?

[fugmo]

08:20 AM on 10/03/2011

Go Unions! The last bastion protecting the working class from a return to Dickensian capitalism.

[Vamp56]

05:00 AM on 10/03/2011

Good for the union for standing their ground. Corporations are making records profits and Oshkosh is using "an uncertain future" as an excuse to cut the workers benefits. More than likely that 8% raise is not covering the extra cost of the healthcare or else the union members would have approved the contract. And those of you writing negative comments have the unions to thank for your 8 hour work day and 5 days a week work schedule, child labor laws, and safety measures in your workplaces, among many other things. The current corporate climate is one of wanting more and more until they bleed us to death. Is that what you really want for the future of this country. I say "HELL NO" and celebrate all who stand up for themselves in the workplace!

[Papa Swamp]

07:32 AM on 10/03/2011

Uncertain future? Oshkosh makes combat vehicles….guess what is supposed to get cut…defense spending. If the 'super congress doesn't reach an agreement by November..the defense budget gets slashed (they will though).

If we withdraw (which I hope we do) from Iraq an Aghanistan…and the orders for vehicles will plummet. That is the part no one seems to get about the was going on….there will be mass layoffs from the defense companies and all the soldiers coming home won't be needed in the military…now what?

I think there is a fairly certain future that cuts are coming. Oshkosh will do what other companies have done..they will move out of country.

As a side note…why do they have to be paid more to offset rising healthcare costs?…thought things were supposed to be getting cheaper….

[demilieu]

02:43 PM on 10/03/2011

Once the combat ends...the recession will deepen. A loooot of American jobs are tied to all the military contracts for Afghanistan and Iraq.

[Dangerous Dan]

01:08 AM on 10/03/2011

South Carolina and Georgia are waiting.

Both "Will to work" states!

[demilieu]

02:42 PM on 10/03/2011

'Work at will' not 'will to work.'

[satyrday]

02:43 PM on 10/03/2011

America loses when the states race each other to the bottom.

[hammhome]

11:51 PM on 10/02/2011

What fantasy-land are these guys living in? My husband got a 14% pay cut three years ago and hasn't had a raise since. He has to contribute more to medical and more to retirement. We're all grateful he's still working........ Signing bonus and 8% over the contract......pppppppppppppppp

[alunsulen]

09:57 PM on 10/02/2011

I hope the union and their families starve. They have destroyed this country. Karma will strike back.

[fugmo]

08:10 AM on 10/03/2011

Karma applies to those who wish ill upon others as well.

[blacksmithn]

04:27 PM on 10/03/2011

How Christian of you.