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tiKtt- FLAINPEALER - WEDNESDAY, JANUARY », H»1 UAW SEEKS SUN ELECTRIC STRIKE Th« strike between the United Auto Workers Local 1712 and the Sun Elec­ tric Corporation continues into its eleventh week. Achievement of industrial peace is impossible in the absence off justice. We ask all citizens, friends and neighbors in Crystal take, Woodstock, McHenry and other surrounding communities to read the ffollowing. We ask that you judge whether or not the Union has sincerely sought in­ dustrial peace or Is Sun Electric sowing the seeds out of which will grow greater conflict. BACKGROUND The UAW and Sun Electric Corporation had previously negotiated contracts in 1971, 1974 and 1977. All of these agreements were ratified by secret ballot vote by the union membership and signed by the officers off the Company. During these years Sun Electric has continued to be profitable and has. In fact, acquired other operations. UAW members who are employees of Sun Electric deeply share in the concern off continued profitability of Sun Electric. Profitability can provide stability of employment along with a better community In which to live and raise our families. Negotiations commen­ ced on September 30, 1980 and here, in chronological order, is the story to date. NEGOTIATIONS 1980 From the very outset of the negotiations the Company refused to agree with any proposals made by the Union. Many of the agreements reached on specific items during the 1977 negotiations were items that the Company demanded to change in 1980. it became quite apparent that the Union was facing a situation where agreement would be impossible due to the position of the Company. To further com­ plicate the possibility of agreement, the Company failed to fulfill the agreement reached in the 1977 round of negotiations. In 1977 the Company would make no changes in the employees' pension plan but they asked the Union to send them the Union's proposal on pensions a year prior to the expiration of the agreement. In August of 1979 the Union sent to Sun Electric a list of pension proposals it wished to discuss during the '00 negotiations. In November of 1980, after having the Union's proposal in its possession for fifteen (15) months, Sun Electric said they could not answer or agree to the Union's proposal on pensions because they were still reviewing it. Prior to the commencement of the strike the Company was told that the Union considered this lack of response to be totally unfair and further demonstrated the bad faith bargaining put forth by the Com­ pany during the negotiations. Charges have been filed with the National Labor Relations Board by the Union. These charges are currently being reviewed by the United States Government. The Union considers this to be an unfair labor practice strike. UNION ATTEMPTS TO AVERT STRIKE The Union Committee could see that Sun Electric was steering these negotiations directly toward con­ frontation. The Company had rejected all of the proposals made by the Union. They continued to demand that all of their proposals be met by the Union. In the opinion of the Union the Company bargained in bad faith, violated the law and, through its irresponsible positions and con­ duct in negotiations, forced the Union into taking strike action. On November 14, 1980, three days before the expiration of the Contract, the Union in o sincere attempt * to avoid a strike, proposed that the contract be extended for six months. The Union proposed that the cost of living clause continue while negotiations proceeded on issues such as wages, pensions and other conditions of employment. Sun Electric rejected this offer and said: "the Union is bargaining in good faith but the offer is still rejec­ ted by the Company". Later that same evening, with negotiations continuing, the Union still attempting to avoid a strike, made the following three point proposal: 1) Retain the existing contract and the Union would withdraw all demands and proposals; 2) Proposed the contract be in effect for 42 months, and; 3) Cost of living protection continue as provided in the 1977 contract with no other wage increases for forty-two months. The Union Committee was again making a good faith and sincere effort to avoid a strike. The Com­ pany was told that if this offer was accepted, it would have to be taken to the membership for a secret ballot vote to accept or reject. Sun Electric negotiators rejected this proposal to avert the strike while the contract expiration rapidly approached. UAW DEMOCRACY The strike was to commence based on the Company's take it or leave it position. The final offer made by the Company was submitted to the membership. The members, convinced that everything possible had been done to avert the strike, voted by secret ballot to reject the Company proposal by a vote of; 262 rejected; 17 accepted. The Company proposal took away and changed long standing provisions, many of which have been in existence for nine years. The 1977 insurance provisions provided no dollar cost to the Sun Electric em­ ployees when hospitalized. The unreasonably cruel offer by the Company had provisions which could result in costs of $500.00 to $1,000.00 for each year when a worker or a member of the worker's family is hospitalized. j •%/ ^ Meetings were held on 11/24,12/10 and 12/12. ... •*V« insignificant changes were made, but the Company's final proposal received on 12/12 was submitted to a vote by secret ballot and the membership rejected this offer 254 to 10. The strike continued. NEGOTIATIONS BOG DOWN??? Local newspapers claimed negotiations were stalled. The facts are that on 12/12 the Union was infor­ med by the Company that they would not be available until after January 1, 1981. The Company also in­ formed the Federal Mediator that it would not be available until after January 1, 1981. Several weeks of this strike have been caused by the Company's refusal to bargain. Ads were placed in newspapers by Sun Electric Company and the Company began the hiring of what Sun Electric regarded as permanent replacements, even while the Union was contacting the Federal Government to resume negotiations. 4*. •i r j The UAW charges and condemns Sun Electric's attempt to break this strike and the Union. We also con­ demn the Company's attempt to inflict cruel and unwarranted action against members of the Union and their families by the Company's attempt to take away the jobs of the employees on strike. PROFITS AND WAGES The 1977 contract provided general wage increases totaling fifty-two cents (52<) per hour spread over the three years of that contract, in addition to the cost of living protection. That fifty-two cents was - proposed by the Company in 1977 negotiations. The Union proposed no general wage increase be provided for in the new contract. This would have resulted in hundreds of thousonds of dollars in wage savings to the Company during the forty-two mon­ th contract proposed by the Union. Sun Electric rejected this proposal by the Union to avert the strike. Sun Electric is not a Company approaching bankruptcy or encountering financial difficulties. The facts are that the Company rejected the continuance of a labor contract which, while in existence, provided the following benefits to the shareholders. a) Capital Investment in 1980 totaled a record $14 million dollars compared to $7.8 million in 1979; money used to acquire additional manufacturing plants. b) Dividends hove been paid quarterly since 1962, and have been increased in each of the past eight years. In 1980 Sun Electric paid cash dividends of sixty-nine cents a share (15% hfgher than the prior year). c) Financial Position - As of October 31, 1980, the Company had working capital of $87,927,000 compared to $62,631,000 a year earlier. d) Union Contract - All of the above was achieved while a Union contract had been in effect. As a matter of fact, labor contracts with Sun Electric have been in force since 1971. We believe, as a Union, that the failure of Sun Electric to accept the Union's offer to avert the strike demonstrates not only corporate greed but a mentality that in no way will sustain the rapid growth Sun Electric has achieved in recent years. Sun Electric stands convicted of rejecting a proposal that provided social and economic justice to em­ ployees who helped achieve these record earnings. SUN ELECTRIC WAGE EQUITY??? WORKERS 52 UAW members receive $6.04 per hour. 29 UAW members receive $6.24 per hour. 81 UAW members receive $6.49 per hour. (This covers better than 50% of the employees represented by the UAW.) DIRECTORS Renumeration for fiscal year ending 10/31/80 Louis Langpop $227,077 Frank Perna $197,474 LeeEnz $134,390 Edward Hale $140,715 George Wendt $125,190 Total renumeration for all Officers and Directors exceeded $1,354,000 for the fiscal year ending 10/31/80. Allegations have been made that the Company has spent hundreds of thousands of dollars for the installation of a fence on the perimeter of the plant and the hiring of additional security guards. They have turned a production facility that provided your friends and neighbors with their livelihoods into an armed camp. We seek your support in this strike, not as a struggle between copital and lobor, but as a struggle for truth and justice for the many citizens of our community. Join us on our picket line. PAID ADVMTIMNO