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.