logo


Deere Retirees File Suit
Thursday, September 11, 2008 2:54 PM


(Source: Waterloo Courier)trackingBy Jim Offner, Waterloo-Cedar Falls Courier, Iowa

Sep. 11--MOLINE, Ill. -- Years ago, Bill Gabbard said, he and his fellow John Deere employees bled green.

Now, Gabbard says, he's just being bled.

And he blames changes Deere has made in its health-benefit program for its retirees.

On Wednesday, the Flex Retiree Organization, a group of retired Deere workers that Gabbard started last year, filed a class-action lawsuit against Moline-based Deere, trying to restore the old benefit system they had.

Attorneys representing the group estimated the class they represent at 5,000-6,000 retired Deere workers.

"One thing that FRO has maintained is that we are a family. We were very proud to be part of the Deere family, and we're loyal," said Gabbard, 67, a Cedar Falls native who worked for Deere in Waterloo, Dubuque, the Quad Cities and Milan, Ill., before retiring in 2002.

"We think it's a great company. We just question the leadership and decisions they're making when they're making record profits. Somebody needs to ask why they're making this change now when there are record profits being made and record compensation packages to the higher-ups."

Gabbard said he doesn't begrudge anyone any bonuses for a company reporting record earnings.

"But why draw a circle around 5,000 retirees and single them out?" he said.

FRO filed its suit in U.S. District Court for the Southern District of Iowa in Davenport.

The complaint stems from a move Deere made Jan. 1, when the farm machinery manufacturer cut health, dental and vision insurance benefits for the approximately 5,000 Flex retirees, Gabbard said.

He added that Deere had broken its word to salaried employees, who qualified for retirement benefits or who took early retirement options, that they would be entitled to receive the same health benefits throughout retirement that they had as active employees.

Gabbard and his group simply want Deere to keep its promise, he said.

The reduction in benefits that hit the workers Jan. 1 was dramatic, said Susan Martin, a Phoenix-based attorney representing FRO. The changes include higher out-of-pocket expenses and co-payments and no safety net for expenses not covered by Medicare.

"We have people who have met significant financial hardship," she said.

Deere had not yet reviewed the lawsuit Wednesday afternoon, according to company spokesman Ken Golden.

"However, Deere does plan to vigorously defend its actions in court," he said in a prepared statement.

"The innovative health care program was reviewed carefully before Deere introduced it, and we are confident that the changes are appropriate and beneficial.




(0)
No Comments
Post Comment
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
   
 
 
 
 
   
 

  
Related Press Releases
Advertisement
Popular Articles
Advertisement
Partner Center
Fundamental data is provided by Zacks Investment Research, market data is provided by AlphaTrade. , and Commentary and Press Releases provided by Quotemedia