Navistar International Corp. employees represented by the United Auto Workers union approved a new four-year contract, the company said.
The agreement replaces a labor contract that expired Oct. 1, Navistar said in a statement released late Saturday. The UAW represents about 2,000 Navistar workers at plants in Illinois, Ohio, Georgia, Pennsylvania, Texas and Indiana.
The deal “will improve the operating structure and flexibility at our UAW-represented facilities to better compete in today’s market,” Navistar CEO Daniel Ustian said in the statement.
The UAW did not have any information on the agreement on its site as of early Monday morning.
The two sides had reached tentative agreement in mid-October. (Click here for previous story.)
Trucks accounted for 58% of Navistar’s sales last year, Bloomberg reported. Engines were 23% and parts were 17%. About 80% of its sales were in the U.S., Bloomberg said.
Navistar said that the contract’s provisions include:
• Increased truck and engine model flexibility to better utilize manufacturing capacity at all facilities;
• Investment in new technology center on existing campus in Melrose Park, Ill., to perform important test and validation work for current and developmental products;
•Significantly improved “new hire” package featuring more competitive and predictable cost structure;
• Healthcare cost sharing by employees; and
• Flexibility in managing non-core activities.
Navistar said it will offer one-time financial packages to certain groups of employees who choose to separate or retire from the company, thus facilitating quicker utilization of the more competitive wage and benefit structure.
