R.J. Reynolds employees vote down unions in close vote

R.J. Reynolds Tobacco Co.'s production and maintenance employees rejected union representation for the third time in 6½ years Friday.

However, getting 45 percent of the vote, according to preliminary results, could inspire union supporters to believe the fourth time could be the charm as early as fall 2012.

With 94 percent of 1,320 eligible employees participating, Reynolds reported 686 voted against and 556 voted for representation by the International Association of Machinists and Aerospace Workers, and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. There were no challenged ballots.

By comparison, the May 2006 election had 1,228 votes against representation by the two unions, 862 for, and 23 ballots were challenged. In March 2005, the machinists and aerospace union held an election in which 1,185 votes were cast against, 618 for, and 50 ballots were challenged.

For the unions to win, they needed to receive a majority of the votes cast by the Tobaccoville and Whitaker Park employees. The National Labor Relations Board is expected to certify the vote in seven days.

"Reynolds had to spend much more money this time around on propaganda and consultants, yet the percentage of union supporters went up again," said John Price, an international representative for the bakery union.

"I would expect there would be considerable interest in trying again next year."

Tommy Hickman, Reynolds' senior vice president of operations, said the company was "very pleased our employees believe that we can continue to grow our business best by working together as a team."

"Our ability to act quickly to address opportunities and challenges continues to set us apart from our competitors, and today's vote helps ensure we will retain that advantage in the future."

The unions filed a joined petition with the labor board Sept. 12. Union representation of workers would allow for negotiation of a contract that could cover pay, benefits and working conditions and gives employees the ability to strike.

Since Reynolds acknowledged the petition filing Sept. 27, there was little, if any, rhetoric and name-calling from either side, or public protests. Reynolds employees supporting the effort did not contact the Winston-Salem Journal to state their case.

Price said union-backing employees were afraid to be identified in the newspaper because of fear of company retaliation. Price said a major worker concern was the firing of 23 employees this year, many with decades of service.

Reynolds spokeswoman Maura Payne said the employees were fired "for violating company policies" that she declined to discuss.

Price said many union supporters are older, putting more of their focus on the company's pension plan and retiree health and other benefits.

Price said Reynolds chooses to keep production salaries at or near the rate paid to union workers at Lorillard Inc. and Philip Morris USA to make unions less enticing to employees. Payne said the average salary and bonus is $70,195 for eligible employees.

Since December 2009, 445 manufacturing employees have accepted voluntary-departure offers from Reynolds. The company's primary reasons for the downsizing are the continuing decline in demand for cigarettes nationwide and higher efficiency gains from consolidating production at Whitaker Park into Tobaccoville.

"They say they want to do all they can to preserve their full-time jobs while they can, while Reynolds increases the use of contract workers at lower salaries," Price said.

When asked about the closer margin of victory, Payne said that "in today's economy, who wouldn't listen when groups come in and say they can get you better pay and benefits?"

"But at the end of the day, all of us want to work for a successful company. I think employees realized what they had at risk. R.J. Reynolds' salary and benefits package is among the best in the state, and all of that would have been open to negotiation."

Michael Walden, an economics professor at N.C. State University, said he isn't surprised by the close vote. "In times of economic stress, often workers look to unions as a way to improve their condition," he said.

"If the vote had been positive, I do think it could have been a tipping point in North Carolina, which by most measures, has the least unionization of any state."

The higher pro-union vote at Reynolds could suggest "a stirring for unionization in North Carolina," said Gene Nichol, director of the Center on Poverty, Work & Opportunity at UNC School of Law.

"It's my belief that, nationally, increasing numbers of working-class Americans are saying they are sick of having the deck so powerfully stacked against them," Nichol said.

"I think unions are going to grow significantly in the next decade because lots of folks are starting to fight back. Unions are a time-tested way to do it."