Navistar, UAW reach labor accord

According to Navistar International Corp. UAW employees at six Navistar facilities have ratified a new four-year labor agreement. The approximately 2,000 employees approved the contract, which replaces one that expired on Oct. 1, 2010

According to Navistar International Corp. UAW employees at six Navistar facilities have ratified a new four-year labor agreement. The approximately 2,000 employees approved the contract, which replaces one that expired on Oct. 1, 2010.

“The new contract is mutually beneficial,” said Navistar chairman, president & CEO Dan Ustian. “It will improve the operating structure and flexibility at our UAW-represented facilities to better compete in today’s market.

“At the same time,” he added, “it maintains a good quality of life for our employees and retirees.”

Navistar said the new contract will result in:

  • Increased truck and engine “model flexibility” for the company
  • Investment in a new technology center at its Melrose Park, IL, facility
  • Improved “new hire” package featuring a more competitive and predictable cost structure
  • Healthcare cost-sharing by employees
  • Flexibility in managing non-core activities.

Navistar will also offer a one-time financial package to certain groups of employees who choose to separate or retire from the company, the firm noted.

“Going forward, we expect these operations to more easily adjust and cost-effectively perform throughout the industry cycle,” Ustian added. “More competitive facilities increase job security and provide confidence of viability in the future.”

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