Workers Shocked as Medical Coverage Cut Amidst Contract Fallout
A labor union filed an unfair labor practice charge against an insulated cable products manufacturer, alleging the company cut off the health care coverage for over 160 employees after the workers rejected a contract offer.
Teamsters Local 986 stated that Okonite, headquartered in New Jersey, terminated the health benefits for workers at the company's plant in Santa Maria, California, on May 19, one day before a strike began.
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Teamsters spokesperson Christian Castro told IEN that the union believes Okonite's decision to end health benefits was retaliatory. He added that the company has not responded to the Teamsters' public statement or contacted the union regarding the issue.
The alleged development took place after the workers voted down a contract offer that outlined wage increases across a five-year period. Castro said the proposal included a 7.25% raise in year one, followed by increases of 6%, 4.25% and two consecutive years of 4%.
However, Castro argued that the offer failed to reflect California's cost of living.
'At first glance,' he said, 'the offer might appear reasonable, but it fails to close the gap our members face. Workers at the Santa Maria facility have already fallen 4.7% behind wage growth at other employers in the region since 2019.'
Castro added that the new proposal would give the Santa Maria employees the same wage level as workers at Okonite's Richmond, Kentucky plant, where he claims the cost of living is 24% lower than in California.
'Our members are not asking for special treatment,' Castro said. 'They are asking to earn a wage that matches the cost of living where they live and work.'
Founded in 1878, Okonite operates six plants in the U.S. Its Santa Maria facility features over 556,000 square feet of space and employs 186 workers. The company has not responded to IEN's request for comment.
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