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How Strong Home Sales May Be Playing A Role In Kohler Strike

Union Several Days Into Walkout At Wisconsin Plumbing Fixture Maker

By
Charles & Hudson (CC-BY-SA)

The post-recessionary rebound in the housing market is partly what’s driving an ongoing strike at the Sheboygan-area Kohler Co.

Nationwide, existing home sales are up 8.8 percent compared to a year ago, according to the National Realtors Association, not counting new construction or commercial building.

University of Wisconsin-Oshkosh economics professor Ben Artz said both new and old buildings need the plumbing fixtures made at Kohler.

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“Kohler’s product demand has probably increased dramatically from the recession,” he said. “Union workers know that, and this is not a bad time to take advantage of that fact.”

Artz pointed out Wisconsin has a relatively low unemployment rate, meaning strikers could potentially find temporary work. He said strikes by large unions — like the United Auto Workers, which represents the Kohler employees — normally last a few weeks or months.

If both sides negotiate, Artz said, the stoppage could end by Christmas. However, Kohler laid in a surplus of fixtures in anticipation of the work stoppage, which could prolong the strike.