Nobody crossed the picket line, and many truckers--union and nonunion--respected the line. The Maytag plant in Newton, Iowa, began to lay off workers as they ran out of parts produced at the struck plant.
Machinists approved a new contract 667 to 254, that includes a $2.10 wage increase over five years. The previous contract offer granted $1.20 over three years. The accord also freezes increases in workers' payments toward their medical coverage.
Jerry Nicks, an assembly line worker for 28 years, said, "This is the best contract I know of in all my time at the plant and the best wage increase I've seen. It's a lot better than the last contract."
A vocal minority opposed the contract, especially those paid on an "incentive work" plan where workers are paid based on the department meeting a daily production quota. If workers do not meet the quota they can be docked up to 30 percent of their hourly pay. The company has a free hand to raise quotas when the production process is altered. Sterling Elders explained, "They cut my daily pay from $140 to $86 just by the company moving jobs around and putting different dies in the press."
Maytag, the country's third-largest manufacturer of large home appliances, doubled profits in the past three years on a 37 percent increase in sales. The plant, which produces washers and dryers, is the largest employer in this southern Illinois town.
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