Navistar and UAW in Tentative Contract Agreement

Oct. 22, 2010
Truck builder seeks more flexible work rules; union wants more commitment to job growth

Truck and diesel engine manufacturer Navistar International Corp. reports it has a tentative agreement on a new four-year labor agreement with the United Auto Workers union. A series of three-year labor contracts that covered about 2,000 workers at six Navistar plants expired on October 1.

Navistar has about 16,000 workers worldwide, but the plants covered by the UAW include operations in Atlanta, Dallas, Fort Wayne, Ind., Melrose Park, Ill., Springfield, Ill., and York, Pa. Navistar also has some nonunion operations in Alabama, Texas, and Mexico.

There has been no indication of a labor strike since the previous contract expired, and representatives of the UAW and Navistar have been negotiating steadily since October 1. However, Navistar idled production of some medium-duty trucks at its Springfield, Ill., plant last week, and laid off about 60 percent of the plant’s workers.

Navistar has been seeking more flexible work rules regarding job assignments, and UAW leaders had been seeking company commitments to expand operations at its union plants.

Details of the new contract agreement have been withheld until union members have voted on it. Voting is expected to be completed within the next week, according to information released by Navistar.

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