Published May 13, 2008 12:50 am -
Retirees considering lawsuit against John Deere
Upset about change in plan
By MARK NEWMAN Courier staff writer
OTTUMWA — A lawsuit may be the next step for a group of John Deere retirees who say they are fighting for benefits they were promised.
Four leaders from the Flex Retirees Organization (FRO) came to Ottumwa from the Quad Cities Monday to explain what the next step would be in regards to getting better health benefits.
The group’s claim is that Deere promised 5,000 salaried employees they would receive equivalent health benefits when they retired.
Last year, retirees received notice that their plan was changing.
They say the change is for the worse. FRO formed toward the end of 2007 in an effort to convince Deere to stay with the old plan, or to at least hold off until next year before making the change. That didn’t happen, and most retirees signed up for the new plan.
Deere has issued a statement saying the new plan is similar to the old plan. FRO leaders said they disagree.
At this point a lawsuit against Deere is likely, said Tom Grooms, a retired John Deere attorney from the Quad Cities and a member of the FRO.
“We want what we were promised: Comparable health care to what we had when we were working [at Deere],” said FRO President Bill Gabbard.
“I doubt they’re going to go back to the old way. But there’s got to be some middle ground that’s better than what we have now.”
“It’s been estimated our law firm is going to cost us $275,000 to $300,000,” said Dick Moore, an FRO board member traveling with several others to clear up any questions among the membership, “plus an [insurance] actuary who may cost $10,000.”
As of Monday, they said, there were 2,200 members in FRO.
“Also as of now, we’ve raised $270,000,” said Moore.
Legal action may take the form of a class-action suit, though Gabbard said not all decisions have been made.
Besides, he said, he also worries Deere has someone going on the FRO Web site to see what they’re up to, so some strategies must remain confidential.
One audience member asked about a letter they all signed promising not to sue John Deere.