UPDATE 1-UAW workers reject Oshkosh pact for second time

* Differences over temp workers, wage increase
* Two sides to continue talking, UAW vows to get deal
By John D. Stoll
OSHKOSH, Wis., Oct 9 (Reuters) - Workers at defense
contractor Oshkosh Corp turned down a new five-year
contract offer from the company for a second time in little
more than a week on Saturday even after union leaders narrowed
differences between the two sides in recent days.
About 63 percent of hourly employees working in northeast
Wisconsin plants represented by the United Auto Workers union
voted to reject the contract, UAW Local 578 President Nick
Nitschke said in an email to Reuters.
The company's desire to work with the UAW on future hiring
of temporary workers remains a key sticking point, he said.
The UAW and Oshkosh plan to resume bargaining in the near
future. Oshkosh spokesman John Daggett said in a statement that
production employees will report to work on Monday at their
normal work schedules and there will be no interruption in
production.
UAW-represented workers at Oshkosh, totaling 3,000 more
than employees, rejected Oshkosh's first contract offer on
Sept. 30 even though that meant losing a $2,000 signing bonus.
Company and union officials spent the past week negotiating
a new deal that included reworded language on seniority and
temporary workers, and a revised financial package.
Oshkosh is a leading manufacturer of a broad range of
military, fire and emergency and commercial vehicles.
The labor talks are being closely watched by investors and
analysts who have been concerned about the company's exposure
to a defense sector that is under pressure.
Tension over temporary workers is not the only problem
still left to resolve. The company's move to increase its
pay-raise offer from 8 percent in the original contract offer
to 8.5 percent through 2016 "didn't fly with higher insurance
costs," Nitschke said. Oshkosh is proposing to raise health
care premiums and insurance co-payments.
"It's time to get it done," Nitschke said. "We are not
going to let it go on much longer ... we will have to do what
it takes."