BY PAUL KOURI AND TOM MAILER
EAST MOLINE, Illinois - Members of United Auto Workers Local 1304 at Case Corporation's East Moline plant voted by a 60 percent margin on May 14 to ratify a new six-year contract. The same central agreement, which covers 3,300 workers in five cities throughout the Midwest, had been rejected in a company-wide vote April 30 by a 58 percent margin.

Members in East Moline had strongly rejected the contract in the first vote, with 81 percent against. Many cited the lower wages and benefits for new hires as their reason for rejecting the contract then. Local 1304 was the only one to reject the pact on April 30, and was the only one made to vote on it a second time.

Dan Baker, a Local 1304 member, told the Burlington Hawkeye that he still doesn't like the contract. Prior to the second vote he said he'd vote "No" again.

"We told them no for a reason. The terms under this agreement are unacceptable," he said. "That's why we said no."

Both the company and UAW International officials were pleased with the results. Jean-Pierre Rosso, chairman and chief executive officer of Case, said, "The new long-term contract is consistent with our operating strategy of simultaneous revenue growth and cost reduction." Revenues for the first quarter of 1998 were $1.4 billion, up 12 percent over 1997, and net income was up 8 percent to $69 million. Case manufactures farm and construction equipment sold in 150 countries.

Stephen Yokich, UAW president, stated, "This new agreement represents significant progress in job and income security for UAW-Case workers."

There is no general wage increase for the six years covered by the contract, except for skilled trades workers. The cost-of-living allowance (COLA) formula will continue and the accumulated COLA of $3.16 will continue to be paid. Workers will also get annual lump sum bonuses each year, based on 3 percent of the prior year's eligible earnings. A new incentive-based production bonus system will replace the previous system based on set standards. The new Case Continuous Improvement Compensation System (CCICS) is patterned after a similar plan at John Deere. It is based on a team rather than individual concept and continuous "improvement" of production standards - in other words speedup. There were also provisions for personal job security for those who qualify and a moratorium on plant closings of UAW-represented facilities during the term of the agreement.  
 
 
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