INSIGHT-Wisconsin clash spotlights US labor-management rift
OSHKOSH, Wisconsin Oct 13 (Reuters) - Oshkosh Corp has been a rare lifeline for the beleaguered United Auto Workers, one of the few American manufacturers to have added significantly to its ranks of well-paid union workers in a brutal decade for factory hands.But now, as the UAW renews conciliatory contracts with major automakers that have dismissed tens of thousands of hourly workers, union employees are turning against Oshkosh.Tim Jacobson, 32, is among the workers who have rejected a new contract forged by union leaders with the maker of military vehicles and fire trucks. They are marching in the streets of this university city on Lake Winnebago to denounce an employer that has nearly doubled its UAW staff to 3,100 over the five-year span of its last union contract.Jacobson himself was hired by Oshkosh two years ago, less than a month after he was laid off from a nearby Harley Davidson plant."What's disgusting?" Jacobson shouts, carrying an American flag as he leads a line of 150 workers at a recent rally downtown. "Union busting," the crowd responds.This seemingly paradoxical labor standoff stems from grievances almost unique to Oshkosh, whose profits have been flush in recent years, and from a broader animus between labor and management, both nationally and in particular in Wisconsin, where a clash over the power of public-sector unions transfixed the country over the summer."Frankly, a lot of people here are pissed off," Jacobson said. Workers complain that the new contract erodes work rules, security and seniority rights - such as a demand that workers can be required to work up to ten Saturdays per year. Particularly galling to them is the company's call for more temporary, non-union positions. When Oshkosh sought union approval to hire as many as 300 temporary workers starting in 2013 as part of its original contract offer, the workforce rejected it.The most recent rejection, on Saturday, was the second in a week. The company had offered as much as an 8.5 percent raise and $2,000 signing bonus to offset to rising healthcare premiums. Oshkosh had attempted to craft a similar deal in 2010, a year before the contract's expiration, and met resistance then as well.An outright strike is unlikely. UAW and Oshkosh officials returned to the bargaining table on Wednesday. A third deal, without any demands for temporary worker provisions, will likely be handed to workers this weekend, according to people familiar with the talks. These people expressed confidence that the third attempt for ratification will work.If it goes through, the victory for the UAW could well be overshadowed by friction it is facing with a much bigger member, Ford Motor Co .Dissent isn't a new phenomenon for the UAW. In Detroit - home of the union's core constituency - workers have shown a willingness to vote down automaker contracts in even the worst of times. And now, as Ford seeks ratification for a new deal that includes lucrative bonuses, there is widespread concern that workers there will vote no. As of Thursday, two Ford factories had rejected a proposed four-year deal, throwing its ratification into doubt.And with protestors on the streets of Oshkosh, Wisconsin where even the deep erosion of the industrial heartland has been kept at bay, the thread of distrust sewn into labor-management relations is proving difficult to sever.Oshkosh's desire to bring in temps follows a pattern set by most of the nation's industrial heavyweights, such as Caterpillar Inc, who want to meet shorter-term production needs without having to bring on another crop of permanent employees. Workers here firmly believe this will lead to an inevitable loss of union jobs."Our members have been getting very angry out there," UAW Local 578 President Nick Nitscke recently said while standing in the lobby of the Oshkosh hotel, the site of the labor negotiations. He pointed to a street corner where hundreds of workers have protested several times in recent weeks. "They do not want anything to do with temp workers."PICKET FEVERThis schism between the workers and their union has many outside observers scratching their heads, coming as it does with the rest of the country plagued by economic malaise.Oshkosh has been on a roll thanks to winning big contracts to build military vehicles in recent years, though it now faces new headwinds as government-spending cuts and increased competition squeeze the defense industry. Management has been hitting this theme hard.In a letter accompanying its first offer to UAW workers last month, Chief Executive Charles Szews said, "the company's offer takes into consideration today's economic realities for our principal customer, the U.S. Department of Defense, which is facing hundreds of billions of dollars in budget reductions." Workers are largely dismissive of that outlook.Like many others in the area, Rep. Gordon Hintz, a Democrat representing Oshkosh, sees the current conflict as at least partially influenced by the protests over public-sector unions that polarized public opinion, just 87 miles to the south in Madison. The Occupy Wall Street movement is also energizing workers, he said. "Does Wisconsin have picket fever? Yes, I think there is a little of that."A broader anxiety is also underpinning the workers' resistance, says Mike Schroeder, a longtime Oshkosh worker recently elected as a chief bargaining steward. "People have not gotten the entire story of what is really going on here. This isn't really about money," he said. "This is about job security."A significant portion of Oshkosh's workers here were hired as the company was scrambling to fill orders from the Department of Defense, while other Wisconsin manufacturers -- including Kohler Co., Harley Davidson, and Mercury Marine - were laying people off and, in some cases, hiring more temps. As a result, Oshkosh was able to hire skilled manufacturing workers who harbored a deep resentment toward non-unionized employees doing short-term work.