Union Workers Turn Down "Sweet" Deal With American Crystal Sugar Company
Factory workers were locked out Monday from entering seven American Crystal Sugar plants located in Minnesota, North Dakota, and Iowa, after rejecting a contract proposal offering a 17% wage increase over five years. The processing plants have brought in replacement workers, and the employees are flocking to file for unemployment benefits.
Rejecting a 17% wage increase over five years is outrageous and offensive in our present sluggish economy. Most factory workers are happy to just have a job and a paycheck. The Union responded to the press,“These negotiations are not and never have been about pay…” and instead offered increases in health insurance and concerns about job security as the reasons for rejecting the Company’s contract offer.
In response to the Union’s concerns, management explained, “Health care costs would go up an average of about $1,000.00 per employee, which is significantly less than their pay increase,” and indicated the Company had proposed language concerning job security. The Company proposal specified prior to any lay-offs, the Company would have to meet certain stipulations before being able to hire non-union workers.
The major disconnect here may very well be the fact the parties last contract negotiations were in 2004, when they agreed to a 7 year labor agreement that raised salaries by 2% and locked in health insurance rates for 7 years. The world has changed profoundly in the last 7 years, our economy has tanked, health care costs have sky-rocketed, and the unemployment rate is hovering close to double digits. The Union representing workers of American Crystal Sugar seems to have been trapped in a time warp. It is hard to have any sympathy for workers who reject a sweet 17% wage increase over 5 years, and opt for unemployment benefits instead. A reality check is in order.
