Aftermarket

UAW Members Ratify Contract With International

December 17, 2007

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The seven-week strike ended Monday at International Truck and Engine Corp. as members of the United Auto Workers (UAW) approved new three-year labor agreements that will yield operational flexibility and cost improvements at nine company locations.

The contract was ratified by a majority of UAW members in a vote conducted this weekend. The new contracts take effect immediately and run until Oct. 1, 2010.
"We expect the new agreements to result in operational and cost improvements at these facilities while maintaining a good quality of life for our employees and retirees," said Dan Ustian, chairman, president and chief executive officer of Navistar. "This deal represents a positive step forward for these facilities."
The agreements were ratified after more than two years of periodic negotiations between company and UAW leaders. The UAW chose to strike on October 23, 2007, and the company utilized its diversified operations and resources effectively so that customers were unaffected by the UAW strike.
"With extraordinary efforts and planning, we met all delivery schedules and as a result, we are well positioned as a business going forward," Ustian said.
The following summarizes some key competitive changes and provisions in the new contracts:
• Significant improvements in operational flexibility and cost structure, while maintaining operational improvements from prior contracts
• Elimination of restrictive and costly minimum employment level requirements
• Increased health care cost sharing
• Ability to shed non-core work
• Improved new hire package
• Ability to close/sell specific locations if business needs dictate
In addition, the UAW has dropped all unfair labor practice charges previously filed with the National Labor Relations Board, which the UAW communicated were the basis of its strike.

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