When negotiations began for a new contract at the Peterbilt Motors Co. truck manufacturing plant in Madison, Tenn., union members were stunned when the company’s parent, PACCAR Inc., demanded the cancellation of normal pay raises for workers on leave to serve in the military reserves or the National Guard.

“We couldn’t believe our ears when we heard that PACCAR wanted to impose a financial penalty on men and women who want to serve our fellow citizens,” says UAW Local 1832 President Mike Pardue. “We let the company know exactly how we felt, and they eventually backed off. But the fact that they would put this type of demand on the table—at a time when our entire country needs to pull together—gives you some idea what these negotiations have been like.”

After workers rejected PACCAR’s initial contract offer, which also contained major concessions, the company locked the workers out. While proposing a 22-cent-an-hour wage for the 750 workers that would not keep up with inflation, PACCAR and Peterbilt executives pocketed $2.4 million in raises last year—Peterbilt’s 63rd consecutive profitable year.

The workers—who have been locked out for seven months—and their supporters took their call for a fair contract to PACCAR shareholders during a rally outside the company’s annual meeting in Bellevue, Wash., April 22.

Pardue and several other locked-out workers who hold proxies—written authorizations to vote corporate stock—attended the company’s annual meeting, where they informed shareholders about the lockout.

Union members also rallied outside the Bank of America’s regional offices in Nashville, Tenn., April 22. Bank of America Corp. is the largest institutional shareholder of PACCAR stock. The workers, joined by union activists and religious leaders, will call on the bank to play a positive role in ensuring workers get fair treatment.

Peterbilt’s initial contract offer also included a 300 percent increase in health care costs, a 600 percent increase in prescription drug prices. After workers rejected the contract proposal, the company locked them out on Sept. 3, 2002, and refused to reinstate them after the workers made an unconditional offer to return to work.

Since the lockout, workers have mounted a campaign to gain community and customer support, visiting truck stops and handing out leaflets at local events.

Last month, some 2,500 community and union supporters, including members of the UAW executive board, rallied in solidarity with the Peterbilt workers outside the plant gates.

“What’s happening here is totally wrong, totally unacceptable,” UAW President Ron Gettelfinger told the crowd. He urged Peterbilt executives to return to the bargaining table and negotiate in good faith.

More

Get more details on the lockout.

Visit the Washington State Labor Council website for information on Peterbilt and more.

Read about union bargaining for health care in America@work.