Appendix B

August 13, 1954

UAW-CIO, Local #833
527-A North Eighth Street,
Sheboygan, Wisconsin

Attention: Mr. Allan J. Graskamp, President

Gentlemen:

This is in reply to your letter of August 10, 1954, containing what you term a modification of your demands.

These are virtually the same demands which you made orally before negotiations were discontinued on June 29th and vary in terminology rather than in substance from your demands prior to the strike.

They offer no basis for an assumption that agreement can be reached.

The company’s position on these demands is as follows:

1. The company has offered a 3¢ per hour wage increase. This makes a total of 18¢ per hour granted in the last two years.

In addition, the company has granted fringe benefits estimated by the union at 6¢ per hour.

In view of the fact that earnings of Kohler Co. employees have always exceeded the average for the industry, the state and the locality, the company’s wage offer is not only fair but generous. The company’s wage offer remains at 3¢ per hour, effective April 5, 1954.

2. The wages of employees in maintenance work and tool and die work are generally in line with wages paid in other departments and we are not in accord with any additional blanket increase for these employees.

3. In the contract last year the company agreed to a procedure intended to reduce the number of existing wage classifications and eliminate any inequities. This procedure did not function due to the union’s insistence on another general wage increase thinly disguised as an inequity adjustment and on the union’s insistence that the company compile data not available and not necessary for bargaining.

Early in the negotiations, prior to the strike, the company expressed its willingness to establish procedures for bargaining to reduce the number of wage classifications and eliminate any intra-plant inequities that may exist. Company representatives have advised you that this is still the company’s position.

4. Your objection to the present pension plan seems to stem mainly from the fact that it was in existence before your union became the bargaining agent and that the union therefore can not claim credit for forcing it upon the company.

The company has offered to supplement the present pension plan to yield retirement benefits at age 65 equivalent to the maximum benefit under the union’s plan for the total years of credited service in any case where the present plan would yield less. It does not agree that the plan be made non-contributory.

5. The company has offered to increase the daily benefits under the hospitalization insurance plan from $6.00 to $8.00 per day; to increase the maximum days from 31 to 120 days; to change the definition of dependent to include children from birth instead of 14 days after birth; and to increase maternity benefits from the present flat payment of $100 to a maximum benefit of $140.

The company has also offered to continue to pay the full cost of hospitalization and surgical insurance for employees, including the increased benefits mentioned above.

The company will continue to contribute 14¢ per month toward the cost of hospitalization insurance for the employee’s dependents.

6. The company has agreed to arbitration of the interpretation and application of the contract which is all the power a judge would have if the contract were before a court of law.

The company does not agree that vital management decisions shall be subject to the review of an arbitrator.

Many employees of the company presently working have been threatened with retaliation when the strikers return to work.

If any such attempts are made, the company will take prompt and adequate disciplinary action. It does not agree that its freedom in this respect shall be restricted by arbitration of discharges.

7. The company does not agree that seniority shall be made the sole factor to be considered in the event of a lay-off or for any other purpose.

In order to be fair to all employees and to maintain an efficient operation, merit and efficiency of performance must continue to be given consideration as well as seniority.

8. As you have been advised repeatedly, the company does not agree to any form of compulsory union membership.

It will not require employees to join a union as a condition of employment nor will it require them to continue membership in a union which they do not believe is properly representing them.

The company does not agree to maintenance of membership.

It has offered the same check-off provision to which it agreed in the last contract, the only change being to prevent deliberate misinterpretation by the union.

9. Sufficient time is now available for lunching in the Enamel Shop, as shown by the fact that the men do eat their lunch. The demand for a 4% lunch time allowance is a thinly disguised demand for a 4% increase in Enamel Shop rates in addition to the increase other employees receive.

An additional wage increase in the Enamel Shop is not warranted.

As you were advised prior to the strike, we intend to eliminate the third shift in the Pottery Dry Finishing Department.

The demands made in your letter offer little prospect for a settlement of the strike by agreement.

Company representatives will attend the meeting now scheduled by the Federal Conciliators for Friday, August 13, 1954.

If the situation appears to be still deadlocked and an impasse reached, further negotiations will be useless until such time as you are willing to take a more realistic view of the situation.

Very truly yours,
KOHLER CO.,
HERBERTV. KOHLER—President