The Teamsters Local 371 strike at Nichols Aluminum continues, more than a month after it started on Jan. 20 and a week after union members rejected a company-proposed contract.
Union president Howard Spoon said 98 percent of the 205 members who voted on the proposed contract last Wednesday rejected it. The union represents about 225 people, and 216 are union members, he said.
"The whole offer was going backwards compared to what we have today," Mr. Spoon said.
Nichols president Tom Brackmann said the company thought it was a "fair and reasonable offer" and was disappointed union members didn't accept it.
He said the Nichols plants at 1725 Rockingham Road and 2101 J.M. Morris Boulevard in Davenport, are continuing to run, and the company is hiring temporary production workers to meet customer needs.
Negotiations between the company and union started Oct 6, the contract expired Nov. 15, and Local 371 members went on strike in January after negotiations reached an impasse. Negotiations restarted in early February.
Mr. Spoon said a federal mediator suggested having union members vote on Nichols proposed contract.
He said two major sticking points in negotiations are changes to the health care plan and introduction of a two-tier wage plan, where new hires would make less than existing employees, which Mr. Spoon described as a "union-busting" tactic.
Mr. Spoon said when the union suggested a three-year salary step plan for new hires to reach full-scale pay, the company wasn't interested.
As for health care, he said union members have gone without wage increases in the past to keep the "good health care plan" they had in the last contract and that proposed changes would have meant much higher costs for employees, without a significant wage increase.
The Nichols contract union members rejected last week included a $1,500 bonus upon ratification, and two $1,250 bonuses -- one in November and the other in November 2013. Life insurance would have increased from $25,000 to $48,000.
Effective Nov. 16, 2014, there would have been an across-the-board wage increase of 1.5 percent.
Strikers are receiving weekly strike benefits of $362, which Mr. Spoon said is less than what they would make working. He also said a relief account was set up to help some of those striking with things such as medical expenses.
Mr. Spoon and Mr. Brackmann said no date has been set to go back to the negotiating table.
Mr. Spoon said "the union's willing to go back to the table anytime."