Stephen Luft
Lifetime Supporting Member
From the Dow Jones Newswire:
To summarize, Rockwell's Power Systems Manufacturing Employees, have decided by a vote of 89 to 30 to approve a strike due to their rejection of a new contract that would have increased their pay at an annual rate of 3% over the next five years. The point of contention dealt with health care costs, whereby Rockwell asked the union to pay an additional 15% each year over the next five years.
Financial Information - Link
The Power Systems divison for the third quarter generated $262 million and an operating profit of $42 million. Annualized, they are probably near $1 billion in sales and $140 - 200 million in operating profits.
When asked about their success of the third quarter:
Hmmm...They sell more at a higher price and it costs less to manufacturer. Three positives working in their favor. Every company strives for this scenario, but not all attain it.
Without actual numbers regarding to pay and health care costs, it is difficult to analyze the impact to the workers.
Public companies tend to promote their numbers to Wall Street...thus attempting to increase their share price, while crying poverty to the workers saying they can't afford raises. I hear it every year from my wife who works at Citigroup. They earn on average $20 billion and the average pay raise is 1-2%.
Health insurance is what I would call a spinning air plane. Once it starts spinning, it is near impossible to regain control again. Hence rising insurance costs. This past year, our premiums only increased 9.4% and we are no where near the group size of Rockwell.
As a union, you would have to believe that their pay scale is higher than the average non union factory, so one would have to believe that they are more than fairly compenstated for their hire.
You would think that with Rockwell's current scenario of improved productivity, they would reward the people who generated it.
Union Workers Strike At Indiana Rockwell Automation Plant
COLUMBUS, Ind. (AP)--Union workers picketed Rockwell Automation (ROK) as negotiations continued on a new labor contract.
The old contract between the company and International Machinists Union Local 1270, which represents 141 workers at the plant, expired early Monday. Some union members on Monday sat in lawn chairs holding signs while others carrying signs walked and urged drivers passing by to honk in support.
Union members voted 90-33 on Sunday to reject Rockwell's contract offer and approved a strike by an 89-30 margin, said Chris Jordan, the union local's president.
Insurance costs were the main sticking point, Jordan said. Rockwell asked union members to pay 15% more in insurance each year for five years, and offered a 3% annual raise.
The company is "disappointed" that a new agreement wasn't reached, said Michele Cauley, business communications manager for Rockwell's Dodge and Reliance Electric divisions in Greenville, S.C.
She said management and salaried employees were at work Monday but that she could not comment on whether any production was taking place at the plant in the city about 40 miles south of Indianapolis.
Rockwell's Columbus plant employs 195 people and produces power transmission equipment for industrial applications, including bearings and gearing equipment for Dodge.
(END) Dow Jones Newswires 08-08-060144ET Copyright (c) 2006 Dow Jones & Company, Inc.
To summarize, Rockwell's Power Systems Manufacturing Employees, have decided by a vote of 89 to 30 to approve a strike due to their rejection of a new contract that would have increased their pay at an annual rate of 3% over the next five years. The point of contention dealt with health care costs, whereby Rockwell asked the union to pay an additional 15% each year over the next five years.
Financial Information - Link
The Power Systems divison for the third quarter generated $262 million and an operating profit of $42 million. Annualized, they are probably near $1 billion in sales and $140 - 200 million in operating profits.
When asked about their success of the third quarter:
The increase in segment operating earnings was attributable to higher volume, productivity improvements, and net price increases, partially offset by inflation.
Hmmm...They sell more at a higher price and it costs less to manufacturer. Three positives working in their favor. Every company strives for this scenario, but not all attain it.
Without actual numbers regarding to pay and health care costs, it is difficult to analyze the impact to the workers.
Public companies tend to promote their numbers to Wall Street...thus attempting to increase their share price, while crying poverty to the workers saying they can't afford raises. I hear it every year from my wife who works at Citigroup. They earn on average $20 billion and the average pay raise is 1-2%.
Health insurance is what I would call a spinning air plane. Once it starts spinning, it is near impossible to regain control again. Hence rising insurance costs. This past year, our premiums only increased 9.4% and we are no where near the group size of Rockwell.
As a union, you would have to believe that their pay scale is higher than the average non union factory, so one would have to believe that they are more than fairly compenstated for their hire.
You would think that with Rockwell's current scenario of improved productivity, they would reward the people who generated it.