Negotiations continue at IAAP, no agreement reached

Aug. 25--MIDDLETOWN -- Workers still are on strike at the Iowa Army Ammunition Plant after more than a week of negotiations.

Nine of the 10 unions at the plant had their three-year contracts expire last week. Three (Machinist and Aerospace Workers Local 1010, Teamsters Local 238 and Operating Engineers Local 150) turned down new contract offers from American Ordnance, the company that operates the plant, last Monday.

They objected to a proposed pension freeze, increased health insurance costs and a pay raise the unions don't see as sufficient to offset the higher insurance costs.

The pension freeze would maintain the benefits employees accrued, but they wouldn't get any more, American Ordnance human resources manager Mike Albee said.

"The pension benefit for the current employees remains the same," Albee said. "There's no more, no less."

New employees haven't qualified for pension plans since 2006, though all employees are eligible to contribute to 401(k) retirement plans with an employer match. Unlike pensions, which are funded solely by an employer, 401(k) plans require an employee to pay into a plan, usually by withholding the money from their paychecks.

Negotiations over employee contributions to health insurance also are ongoing, Albee said. Companies across the country have passed more health insurance costs onto their workers in recent years through increasing deductibles (the amount an employee pays out-of-pocket before insurance kicks in) or the amount workers contribute to their premiums (the cost for coverage).

"As of right now, we're looking at an increase," Albee said.

A federal mediator has come in to help with negotiations, and talks will continue today.

Scott Webster, business agent for Machinist and Aerospace Workers Local 1010, said talks are continuing but he couldn't say much more.

"It's hard to talk progress until we're at a tentative agreement," he said.

The unions hope for some movement today, he said.

"We want an agreement, and we want a fair and equitable deal," he said.

American Ordnance has continued to operate with a reduced staff as the strike continues. The company has been in touch with its customers to keep them updated on negotiations and their impact on the plant, Albee said.

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