The Kohler Co. and its union have reached a tentative agreement on a new contract that could bring an end to a monthlong strike at the privately held maker of plumbing products, cabinets, furniture and other items.
Under the proposed deal employees would get wage increases in each year of the contract, according to union leaders who represent about 2,000 workers at Kohler's kitchen and bath plant in the village of the same name and at a generator factory north of Sheboygan.
Members of United Auto Workers Local 833, who went on strike Nov. 15, are expected to vote on the four-year deal Wednesday.
Hundreds of Union members picket at the gates of the Kohler Co., Monday, Nov. 16, 2015, in Kohler, Wis. Workers have taken issue with what they call an inadequate pay increase, higher health care costs and the continuation of a two-tier wage scale. (AP Photo/Greg Moore)"We worked very hard to reach an agreement that addresses all of the key areas crucial to the future of our members," said UAW Local 833 President Tim Tayloe. "The agreement significantly brings one tier associate pay closer to the other, while also providing substantial wage increases in each year of the contract. All benefits have been enhanced and the modifications to the health care plans have reduced the potential for increased out-of-pocket costs to our membership."
The two-tiered pay scale was a sticking point in negotiations. The union said it unfairly limited new employees to roughly $13 an hour. CEO David Kohler warned that without the two-tiered system, local manufacturing jobs would likely disappear.
Kohler, who is also president of the company, said the tentative agreement recognizes the contributions of the workers in making the company more competitive in the future.
"The common ground that we share is more important than any differences we may have — and this agreement reflects that," he said in a statement.
Kohler has more than 30,000 employees worldwide in businesses that range from kitchen and bath products to resorts and real estate.