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415 Members Enter Fourth Week on Strike at Dresser-Rand

Company wants to quadruple health care costs

A proposal to quadruple health care costs was the final straw for 415 members at Dresser-Rand who hit the streets August 4 after 93 percent voted to strike two days earlier.

Though changes to overtime pay and unlimited subcontracting were problems for the workers, it was the company's unfair labor practices, including a regressive move on health care, that led to the strike.

"Our members simply could not afford the enormous costs that the original plan imposed," said Local 313 President Steve Coates.

And then the company decided to make the plan even more expensive, proposing yearly increases in out-of-pocket costs just hours before the contract expired.

The out-of-pocket expenses would exceed all proposed wage increases by the second year of any new contract.

"This company seriously underestimated the resolve of our members. They acted to provoke this strike in an effort to break this union," said Coates. "They knew how upset our members were with the proposed health care plan. Yet at the eleventh hour, they proposed an even worse health plan."

For member Roger Watkins, his costs would jump from $1,500 to $8,000 under the proposed plan, which includes a $2,500 deductible and high premium costs. "If you have a high deductible and poor coverage, you just do not go for treatment unless you are at death's door," said Watkins.

The company also wants to eliminate company-paid medical for retirees age 62-65. This change would harm some 200 retirees who are growing into the medical coverage.

Yet at the same time Dresser-Rand has been enjoying record profits, with earnings in the second quarter at $26.2 million, or more than double profits from the same quarter last year. The company has a $1.6 billion backlog of orders.

Last year Dresser-Rand CEO Vince Volpe received a $12 million bonus.

"Corporate greed is going to ruin the United States," said member John Abbey. "So we might as well stand tall now and not have to worry so much in the future."

Though the company hired scabs, production at the industrial compressor plant has plummeted.

Community backing has been outstanding. Some businesses are giving strikers discounts when they wear their strike buttons.

An August 11 rally in front of the plant turned out several hundred union and community supporters.

In addition to the traditional car horn honking, strikers are getting more tangible support.

 "Neighbors brought us pizza and drinks and iced tea," said member Jim Jelliff. Other supporters grilled sausages and onions for those on the picket line.

National Labor Relations Board charges have been filed. Despite attempts at mediation there have been no further talks.

"Our members will not accept this unfair contract, and are determined to strike until the company stops its unfair labor practices," promised member Brian Preston.