CNH DECLINES UAW OFFER TO RETURN TO WORK
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Lake Forest, Illinois (November 22, 2004) CNH America LLC, a wholly owned subsidiary of CNH Global N.V. (NYSE:CNH), today declined the UAW's return to work offer saying the company does not believe that it would be in the best interests of the company, its customers and dealers. The announcement by the union followed by several hours the company's declaration that negotiations have reached an impasse.
"We do not think it is appropriate at this time to allow striking employees to return to work while the parties remain so far apart in the negotiation process," CNH chief negotiator Tom Graham said. "When the UAW decided to strike, CNH was forced to initiate our contingency plans, which includes the use of salaried employees and temporary replacement workers to resume operations in our Racine and Burlington manufacturing plants. Until the parties have concluded their negotiations on a new contract that is acceptable to the company, we believe it is in the long-term best interests of the company, as well as our customers and dealers, to continue operations using a combination of temporary replacement workers and salaried employees.
"We remain committed to achieving a contract that is fair and equitable for all parties, enabling us to be competitive in the global marketplace we serve. We are prepared to meet with the UAW to clarify the company's position and answer any questions the UAW may have regarding our final offer."
Earlier today, CNH declared that contract talks between the company and the United Auto Workers (UAW) had reached an impasse, more than six months after the UAW rejected the company's final proposal, and following the union's subsequent strike on November 3, 2004.
In total, approximately 650 of the company's 10,000 North American employees are represented by the UAW, with nearly all working at the two manufacturing locations in Racine Wisconsin and Burlington Iowa. CNH operates 41 manufacturing centers worldwide of which 14 are located in North America.
CNH is the power behind leading agricultural and construction equipment brands of the Case and New Holland brand families. Supported by 12,000 dealers in approximately 160 countries, CNH brings together the knowledge and heritage of its brands with the strength and resources of its worldwide commercial, industrial, product support and finance organizations. More information about CNH and its products can be found on line at www.cnh.com