Workers of Mexico-based truck maker Consorcio G Grupo Dina SA have accepted a proposal to halt production for seven months and fire 40% of the workforce. The company offered its workers an 8% pay rise and pledged to cover 48% of workers' wages while its plant is idle.
Financial troubles for Dina, which defaulted on a $6.5-million interest payment on a $164-million bond in February, began in September 2000. That was when Western Star Trucks Holdings Ltd., after being acquired by Freightliner LLC, canceled a three-year contract to buy 9,000 trucks.
Under the agreement, the OEM will shut down its plant until October 31, and reduce its workforce from 506 to 304 employees.
“This is just a temporary measure while we continue the search for different alternatives to reactivate our production plant,” the company said. .