Machinists at ammunition plant end strike
and ratify new contract

September 27, 2005  The two hundred Machinists Union members working at the Iowa Army Ammunition Plant near Burlington, IA ended their 9-day strike and ratified a new 4-year labor agreement recently.  The plant is operated by American Ordinance and our members make munitions for the military.

The contract deadline was extended until September 10, 2005 at which time our members of IAM Local 1010 overwhelmingly rejected the company’s last, best and final offer. The main issues causing the strike were wages, increases in the employee portion of health insurance premiums and pension benefits.

Further negotiations lead to an agreement our members could ratify and they returned to work on Wednesday, September 21, 2005.

IAM District 6 Business Representative Ed Miller proudly said, “Our members solidarity and professionalism on the picket line allowed the bargaining committee to negotiate a successful end to the strike.”

The new agreement includes $2.08 in wages increases over the term of the agreement.  The employee portion of insurance rates are frozen until December 31, 2006 and after that there are some modest increases.  Increases in the company pension apply to all service credit and will add 25 cents the first year.  Then on January 1, 2008 pension benefits will increase seventy-five cents and on January 1, 2009 pension benefits will increase by 1 dollar.

IAM Midwest Territory General Vice President James E. Brown praised BR Ed Miller and the Local 1010 bargaining committee saying, “We appreciate their hard work and dedication seeking the wages, benefits and working conditions our members at Local 1010 deserve.  We congratulate our members on their new contract and wish them continued success in the future.”