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Deere retirees file suit
By JIM OFFNER, Courier Business Editor
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. We continue in our belief that involvement by retirees in their own health care decisions will result in choices that are better matched to each person's individual circumstance. This program represents a significant benefit that many retirees of other companies do not enjoy."
Martin said Deere officials have 20 days to respond to the suit.
Beyond that, she said she had no idea how long this fight might last.
"I can say that we are anxious to try and get a resolution of this matter as quickly as possibly can because the retirees continue to suffer from these cutbacks," Martin said.
"We'll do everything in our power to move this case forward expeditiously toward that end."
Marv Dillavou, president of the Waterloo-Cedar Falls chapter of FRO, said the retirees had no choice but to go to court.
"I'm disappointed we had to resort to this," said Dillavou, 62, who retired from Deere in April 2007. "It's difficult to stand by and watch the retirees see significantly higher out-of-pocket medical costs when Deere is doing extremely well, and it's the oldest of the retirees who are seeing the highest increase. In many cases, they're spending a lot more money to take care of their health than under the old plan."
He said he doesn't know how the retirees will fare in court.
"Right is still right," he said. "That's the approach we're taking. It's something that's distasteful to most of us to have to sue the company we worked for for 30 years. But when they won't talk about it with us, it's our only alternative."
Contact Jim Offner
at (319) 291-1598 or
jim.offner@wcfcourier.com.
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. We continue in our belief that involvement by retirees in their own health care decisions will result in choices that are better matched to each person's individual circumstance. This program represents a significant benefit that many retirees of other companies do not enjoy."
Martin said Deere officials have 20 days to respond to the suit.
Beyond that, she said she had no idea how long this fight might last.
"I can say that we are anxious to try and get a resolution of this matter as quickly as possibly can because the retirees continue to suffer from these cutbacks," Martin said.
"We'll do everything in our power to move this case forward expeditiously toward that end."
Marv Dillavou, president of the Waterloo-Cedar Falls chapter of FRO, said the retirees had no choice but to go to court.
"I'm disappointed we had to resort to this," said Dillavou, 62, who retired from Deere in April 2007. "It's difficult to stand by and watch the retirees see significantly higher out-of-pocket medical costs when Deere is doing extremely well, and it's the oldest of the retirees who are seeing the highest increase. In many cases, they're spending a lot more money to take care of their health than under the old plan."
He said he doesn't know how the retirees will fare in court.
"Right is still right," he said. "That's the approach we're taking. It's something that's distasteful to most of us to have to sue the company we worked for for 30 years. But when they won't talk about it with us, it's our only alternative."
Contact Jim Offner
at (319) 291-1598 or
jim.offner@wcfcourier.com.
More Stories from Business » Local
aqua wrote on Sep 11, 2008 4:35 PM:
" I was told that if you don,t know what you are talking about, shut up. Others should do that also.
I paid almost $700 for one of my meds and $400.00 for another must have med. No one from FRO pays $4 or $2 for all of their meds. I was taking 6 different med, but cut myself back to 6 that I must have. Our deductable have gone from $500 to $2,500 or $3,000.
We didn't ask anyone for sympathy, we sued!
I wonder if the rest of the world took the time and money to go to colledge to get this type of job? These people took a cut in pay to get their health care as Deere agreed to give them. Now Deere got cheaper labour and cut their health care benefits. "
I paid almost $700 for one of my meds and $400.00 for another must have med. No one from FRO pays $4 or $2 for all of their meds. I was taking 6 different med, but cut myself back to 6 that I must have. Our deductable have gone from $500 to $2,500 or $3,000.
We didn't ask anyone for sympathy, we sued!
I wonder if the rest of the world took the time and money to go to colledge to get this type of job? These people took a cut in pay to get their health care as Deere agreed to give them. Now Deere got cheaper labour and cut their health care benefits. "
taxpayer wrote on Sep 11, 2008 6:48 PM:
" Hey cf, These retirees were promised something by Deere and now they want to screw them. These workers weren't given anything they have earned it. This company continues to break profit records and you want to come down on these people. I hope the company loses so big "
KRIS wrote on Sep 11, 2008 9:54 PM:
" Aqua, I couldnt of said it better. People have no clue. My hubby is a "new" Deere employee that will never make what the old timers get. Is he complaining? No, he is glad he has a job. Where you work, are you made to work mandatory saturdays? He has. Have you ever done the same job as the person standing next to you that makes double what you do and never will? Deere's makes a promise to these people and they better well keep it. We have an insurance company that is refusing to pay for my celebrex, but will pay 240 dlrs a box for Lidoderm patches. Find the sense in that. Like Aqua said, " I was told that if you don,t know what you are talking about, shut up." These employees gave this company many years of their life to make them the billions. It is not the company that is paying their medical costs. The people buying the products are what is paying the costs. There are some things that are nobodys business, and if you were promised something by your job (if you have a job)I bet you would fight for the promise as well. "
2004JDretiree wrote on Sep 12, 2008 8:12 AM:
" It would have take a few minutes for cfreader to fill out an application if they wanted to work for Deere and then they would not feel so left out.
You have NO idea what changes I have been forced to undergo since 4 years ago when I retired.
I only wish I could get prescriptions for $4.
Yes, Deere did make all the promises that you are hearing in the media every year when you got your reviews they had it printed out and were so proud to tell you that healthcare, holidays, vacations were part of your compensation package and they would list the value of those benefits and also your wages and then tell you they are taking vacation away, or there is no money for any raises.
There is absolutely no way that Deere would be hurt to honor their contract with all the FLEX retirees with the constant record profits they are having.
If you take the compensation packages of just ONE executive officer, namely Bob Lane, CEO of Deere & Company, his 2007 package was 52.4 MILLION. Over a million dollars a week!! That money alone would take care of over 60% of ALL the FLEX retirees healthcare issues.
cfreader, with an application and a degree, you may just be the next Bob Lane???? "
You have NO idea what changes I have been forced to undergo since 4 years ago when I retired.
I only wish I could get prescriptions for $4.
Yes, Deere did make all the promises that you are hearing in the media every year when you got your reviews they had it printed out and were so proud to tell you that healthcare, holidays, vacations were part of your compensation package and they would list the value of those benefits and also your wages and then tell you they are taking vacation away, or there is no money for any raises.
There is absolutely no way that Deere would be hurt to honor their contract with all the FLEX retirees with the constant record profits they are having.
If you take the compensation packages of just ONE executive officer, namely Bob Lane, CEO of Deere & Company, his 2007 package was 52.4 MILLION. Over a million dollars a week!! That money alone would take care of over 60% of ALL the FLEX retirees healthcare issues.
cfreader, with an application and a degree, you may just be the next Bob Lane???? "
glw wrote on Sep 12, 2008 8:27 AM:
" I find this whole story comical, and after reading these blogs it only confirms my belief that the salaried people retired from Deere never had a clue.
Welcome to the real world all of you....to the world where the rest of us see increases in our health insurance premiums, constant changing and reduction of benefits, etc.
This "promise" you keep referring to. Was it a "written contractual agreement" or just a unwritten "rule" that you'd always get free coverage.
You can't honestly believe that ANY company can make such a "promise" to an employee and expect to uphold that forever?
Welcome to the real world FRO retirees. Get over it, adjust your Deere lifestyle, make changes in your life to accomodate your changes in health coverage and get over used to life like the rest of us have been living for years.
The days of being insulated in the Deere world of the past are over. "
Welcome to the real world all of you....to the world where the rest of us see increases in our health insurance premiums, constant changing and reduction of benefits, etc.
This "promise" you keep referring to. Was it a "written contractual agreement" or just a unwritten "rule" that you'd always get free coverage.
You can't honestly believe that ANY company can make such a "promise" to an employee and expect to uphold that forever?
Welcome to the real world FRO retirees. Get over it, adjust your Deere lifestyle, make changes in your life to accomodate your changes in health coverage and get over used to life like the rest of us have been living for years.
The days of being insulated in the Deere world of the past are over. "
Death of common sense wrote on Sep 12, 2008 9:03 AM:
" Welcome to America. Kris, if your husband does not like his job he can quit. My husband works Saturdays and Sundays. He and I have both worked at places where people who got paid more did the same job or even did less work. Employers all over are screwing their employees. It is nothing new. "
KRIS wrote on Sep 12, 2008 10:05 AM:
" Death of common sense where did I say that he didnt like his job, reread before you jump the gun...he loves where he works. He CHOOSES to work overtime. Sometimes I swear, sometimes I think you post just to hear yourself talk. "
Flexretireewife wrote on Sep 12, 2008 11:36 AM:
" The Flex retirees are NOT union workers, they pay a premium each month for their health insurance. They do Not get $2 or $4 perscriptions. Since 2004 their deductibles have risen from $500 a year to $4300 for a married couple.
Their pensions have not nor ever will rise, until they reach Social Securty age and they become eligible of Medicare.
They for the most part never received high salaries, just average pay for a hard days work.
Everyone should support these retirees, if John Deere gets away with this other companies will follow suit.
I now your thinking, not my company, these flex retirees thought the same thing about Joh Deere. "
Their pensions have not nor ever will rise, until they reach Social Securty age and they become eligible of Medicare.
They for the most part never received high salaries, just average pay for a hard days work.
Everyone should support these retirees, if John Deere gets away with this other companies will follow suit.
I now your thinking, not my company, these flex retirees thought the same thing about Joh Deere. "
50674 wrote on Sep 12, 2008 1:01 PM:
" Well KRIS you DID say mandatory Satursdays. Deere is not that much different than our present government when it comes to keeping promises. They promised their employees certain things when they retired, like our government did to the military, and aren't keeping their word. Unfortunately, the salaried workers aren't protected by the UAW so a lawsuit is their rightful option. Unfortunately, Iowa is a "right to work" state and being so means employers are free to do what they want unless there is a contract. "
KRIS wrote on Sep 12, 2008 3:07 PM:
" Yes, they are on mandatory saturdays because the people that said they would show up for Ot never do, so the supervisor made it mandatory. He works them anyway.....what does this have to do with the benefits being changed by what was promised them.. Glad hubby is in the union......can hardly wait for contract time next year. Funny how a simple statement on these can cause such an uproar. Chill people, it will keep you alive longer Geesh. "
think wrote on Sep 12, 2008 4:26 PM:
" Well as far as the UAW goes the “old timers” of which I am was one sold out the newbie’s. I’ve been waiting for payback time. They will have no problem selling the old timers down the river. As for the white collars 6 days a week is more/less expected or 12 hour days. You know up front what Deere expects. Hard work and long hours. "
kris wrote on Sep 12, 2008 10:55 PM:
" I agree think, and that is exactly why those that are promised the medical benefits should get just what they were promised. It isn't like Deere's cant afford it. My husband loves his job. He works extra hours because he WANTS to. They will always look out for number 1. Everyone is dispensible. Like my mom and dad always said, "there is always someone standing in line for your job". They agree to give you something, you agree to give them hard work. It is sad that you cant trust anyone now a days. "
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cfreader wrote on Sep 11, 2008 1:51 PM: