WARRENVILLE, Ill. — Navistar has come to terms with its UAW-represented workers over a new four-year labour agreement.
The contract replaces one that expired Oct. 1.
“The new contract is mutually beneficial. It will improve the operating structure and flexibility at our UAW-represented facilities to better compete in today’s market,” said Dan Ustian, chairman, president and chief executive officer at Navistar. “At the same time, it maintains a good quality of life for our employees and retirees.”
Navistar says the contract includes: increased truck and engine model flexibility, to better utilize manufacturing capacity at all facilities; development of a new technology center; improved ‘new hire’ packages with more competitive and predictable cost structures; health care cost-sharing by employees; and flexibility in managing non-core activities.
“Going forward, we expect these operations to more easily adjust and cost-effectively perform throughout the industry cycle,” Ustian said. “More competitive facilities increase job security and provide confidence of viability in the future.”
The new contract covers about 2,000 UAW workers at six plants.
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