Sugar beet workers to vote on contract

With a lockout looming on Monday, union workers at American Crystal Sugar are expected to vote this weekend on a new contract offer they received Thursday from the sugar beet company.

The Moorhead, Minn.-based farmers co-op, the largest U.S. beet sugar producer, has threatened to lock out 1,300 workers at its five sugar mills -- a major labor disruption -- if a new contract isn't in place when the current one expires at midnight Sunday night.

The bargaining committee of Local 167A of the Bakery, Confectionery, Tobacco and Grain Millers union isn't providing a recommendation to its members on the company's new offer -- neither a thumbs-up nor a thumbs-down.

"The committee feels the proposal has a lot of holes," said Mark Froemke, head of the AFL-CIO's Red River Valley council. But union members will vote on it as early as Saturday. "They will determine if it is satisfactory or not."

Brian Ingulsrud, American Crystal Sugar's vice president for administration, said that if the contract is voted down, the company will go ahead with its lockout plans and bring in temporary workers to run its mills.

"This is our final offer, and it is a very competitive offer when you look at the wage package," Ingulsrud said.

Gov. Mark Dayton is slated to be in northwestern Minnesota on Friday, aiming to help stave off any lockout. Dayton plans to meet privately in Crookston with American Crystal Sugar executives and in Moorhead with union leaders.

The company's latest offer -- a five-year contract -- would raise wages by 4 percent in the first year, 3 percent the second year, and 2 percent in each of the following three years. Workers would also get a $2,000 signing bonus. The company's earlier five-year offer featured a 1.25 percent raise annually.

American Crystal Sugar's union workers make about $40,000 on average, according to the union. It's $50,000 on average with overtime, according to the company.

American Crystal Sugar's offer would put union workers under its corporate health plan, not a separate union plan. That would mean union workers, who currently pay no premiums, would pay premiums for family coverage of over $850 a year.

The union estimates that including increases in deductibles under the company plan, union members' average out-of-pocket health care expenses would more than double if they accepted the offer.

Work rules have been a big sticking point in contract talks. The union has said that the company wants to be allowed to contract out union jobs to other firms, and dismantle seniority.