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Workers reject proposed Case contractBURLINGTON, Iowa (AP)--Union members at the Case Corp. plant in Burlington have rejected a contract offer from CNH Global. The 200 union employees at the backhoe equipment manufacturing plant have been working without a contract after a six-year agreement between United Auto Workers Local 807 and CNH Global expired on May 2. The Burlington plant has a total of 400 workers. The contract with UAW Local 807 also includes 360 union workers at CNH plants in Racine, Wis., Burr Ridge, Ill., and St. Paul, Minn., where Case and New Holland brand agricultural and construction equipment is manufactured. About 350 union members in Racine are covered under the contract, along with 900 to 1,000 members in Burlington. Union members will continue to work without a contract, UAW officials said in a statement released May 8, even though the union's bargaining committee is authorized to call a strike. The Detroit-based United Auto Workers said the six-year offer from CNH was "substandard" and had recommended rejection of the offer. The company and the union have declined to discuss specifics of the proposal. CNH said only that it was a "final" proposal. Union officials had said the proposed pact "does not meet the needs of our workers or their families." Elliott Anderson, a Case retiree who sits on the board of the UAW local in Burlington, confirmed the contract was rejected. Anderson, who had attended a meeting in which the contract details were explained, said it would have required workers to pay part of their health insurance costs, would have increased copays and added higher deductibles. He said contract language also would have given the company the right to hire temporary help when needed and included other measures aimed at weakening union representation. "It's a sad, sad situation," he said. "It's a shame in America today that we've got this stuff going on." Talks surrounding a new contract began in Racine in March. "Our members have said CNH Global needs to do better than this substandard proposal," UAW Vice President Cal Rapson said in the statement. "The bargaining committee will meet soon to discuss the union's next course of action." Messages left with CNH spokesman Jeff Walsh were not returned May 8, and telephones at union offices were not answered. Date: 5/11/04
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