By MARK NEWMAN Courier staff writer
May 13, 2008 12:49 am
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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.
Dave MacKenzie, head of the Ottumwa chapter of FRO, read aloud from a copy of that agreement. It said the signer would not sue Deere for its actions up to the date signed.
“It’s not to hold you hostage for the future,” said Gabbard.
The Flex Retirees Organization, made up of members who were salaried employees, is not necessarily going to be suing John Deere. That’s where a “retainer agreement” comes in, the officers said.
“This lawsuit we think may have to happen ... we as individuals have a lawsuit,” said Grooms. “FRO has not had a relationship with John Deere. That’s what this ‘individual retainer agreement’ does. [It creates] that all important attorney-client privilege. The lawyer-client relationship.”
The agreements have been mailed to members.
“I took a special early retirement, and I signed a letter not to sue,” said Mickey Hucks Sr. of Ottumwa after the meeting.
“Well, that was just for the period up until you sign. Unless people who receive the [retainer agreement] understand, they may have that in the back of their mind, wondering if they can sue.”
They can, said Grooms. He added that all officers and board members had already signed.
“[Also], the signing of the [attorney retainer] agreement does not obligate the individual to pay attorney fees,” said Grooms. “FRO is doing that.”
“In a flat minute I’ll sign it,” said retiree Jannet Harville of Ottumwa. “We have to take a stand.”
The officials asked that all FRO members fully commit to the fight by recruiting fellow retirees, sending in old health benefit letters or materials from the company, lobbying elected officials to help and contributing the recommended amount for each income level
The fund may be needed for more than just this case, the FRO leaders said.
“We don’t know what the company is going to do next, in 2010, 2011,” said Moore. “Let’s don’t assume this is the end of it.”
Mark Newman can be reached at 683-5358 or by e-mail at mgnewman@mchsi.com.
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