On Sunday, Sept. 8, a collective bargaining agreement between BorgWarner and about 700 assembly line workers represented by the Teamsters Union expired.
BorgWarner has raised the prospect for years of transferring its production currently made in a factory next to the Ithaca Airport in Lansing to other plants located in Mexico. BorgWarner’s Lansing campus is the fifth largest employer in Tompkins County behind Cornell, Cayuga Health, Ithaca College and the City of Ithaca School District.
Last week BorgWarner made its “last, best and final offer” to the Teamsters, and on Friday, after considering the offer, 88% of the workers voted to strike. Workers at BorgWarner haven’t gone on strike in over 30 years.
The negotiations had been subject to a non-disclosure agreement, which expired on Sunday. Union officials claim that BorgWarner proposed a 22.5% wage increase over the four year term of the new contract. However, fringe benefits would be reduced.
BorgWarner ‘s local presence dates back to 1880 when the company was founded in Trumansburg as the Morse Equalizing Springs Company. It later moved to the Morse Chain facility that is still awaiting redevelopment on South Hill. Morse Chain later merged with BorgWarner.
In general, the economy of New York’s Southern Tier has been in a recession or depression since the 1970s. Prior to that time, Xerox and Kodak had extensive manufacturing in Rochester, and IBM made electric typewriters and computers in Endicott, NY. The National Cash Register (NCR) company also had a factory on Ithaca’s South Hill.
Although Cornell just settled a two-week long strike with its UAW-represented workers, that settlement belies the weakness for labor demand in the area. The BorgWarner – Teamsters strike is not expected to affect Cornell and its operations.
