Navistar Springfield, UAW reach tentative agreement


By the numbers:

131 — Members of Navistar’s TSC bargaining unit

1,500 — Estimated workers at Navistar overall

99 percent — Percent of members who voted to approve an authorization to strike

$256 million — Volkswagen’s investment in Navistar

COMMITTED COVERAGE

The Springfield News-Sun has covered Navistar’s turnaround as the facility has continued to add jobs and new work in recent years. The paper has provided extensive coverage of the company’s failed efforts to develop a new engine technology, joint agreements with General Motors to build new products at the Springfield facility and Volkswagen’s recent decision to buy a 17-percent stake in the company.

UPDATE @ 12:15 a.m. (Oct. 1)

Just before the strike of midnight, Navistar and one of its bargaining groups averted a strike by reaching a four-year tentative pact.

The 131 mechanics represented by the United Auto Workers Local 402 will vote Oct. 11 to ratify the agreement, said Jason Barlow, Local 402 president. Members earlier this week voted to authorize a strike should the contract expire. The old agreement ended at 12:01 a.m. today, but work will continue as ususal through the Oct. 11 vote.

Barlow said he is optimistic the membership will ratify the contract, and said it provides significant wage increases for members, health care, increases in employer contributions to retirement plans and job security. He added that the UAW Local members also are eager to continue to work together with Navistar to make it a strong and profitable company in Springfield.

EARLIER

Members of Navistar’s Truck Specialty Center Bargaining Unit continued to negotiate with company officials as the unit’s contract was set to expire just after midnight Friday.

The current contract was scheduled to expire at 12:01 a.m. Saturday, according to information from the United Auto Workers Local 402, which is representing the unit in the negotiations. It was not clear whether the sides were close to reaching a deal late Friday, and company officials did not respond to calls for comment Thursday and Friday.

Members of the bargaining unit voted nearly unanimously to approve an authorization to strike earlier this week, although negotiations continued Friday in the hours leading up to the contract’s expiration.

The unit represents 131 UAW mechanics who perform truck modifications and pre-delivery inspection service on two shifts, said Jason Barlow, president of the UAW Local 402.

This is the fifth week of negotiations between the unit and the company, according to a brief statement from the UAW.

“We are committed to obtaining a fair and equitable contract for our membership and will update you with more details as they become available,” the statement said.

Overall, Navistar employs more than 1,500 workers at its Springfield plant, and thousands of retirees also live in the area. The company recently struck a new deal with Volkswagen in which the German firm pledged to buy a roughly 17-percent stake in Navistar and invest as much as $256 million.

Employment has been steadily growing locally after the truckmaker previously announced two separate deals to build GM vehicles in Springfield.

Local officials said Friday the union’s relationship with management has improved dramatically over the years, which has been key to turning the local facility around. Just a few years ago, there were as few as 300 workers in the Springfield facility and there were fears the site might be closed. But workers weathered turmoil that included top management changes, legal struggles, a recession and a failed engine technology.

But the company has since made major investments in the Springfield site, and last year the company reached a four-year deal with the UAW that covered a majority of the facility’s workforce.

“I’m glad we’ve got the big negotiations behind us but the small units are also important,” said John Detrick, Clark County commissioner. “I hope that this is quickly resolved so that we’re sending a message that Springfield wants jobs and is grateful for the opportunities we’ve gotten.”

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