The proposed agreement will impact other affiliated UAW locals associated with Navistar and those entities were referred in the extension agreement as the “union.”
The extension will push the duration of the contract to October 2026. It was set to expire in 2024, according to a copy of extension agreement.
Under the extension agreement, each employee who is on active or laid off status on the date that the agreement is ratified will receive a lump sum payment of $5,000.
The agreement stated that there is to be a minimum active headcount in Springfield of 1,130 workers. Line production rate at the Springfield plant, which makes trucks as well as cutaway vans for General Motors, is to stay at minimum of 90 units per day.
However, that will not apply on down days or down weeks. The stipulation will also be altered if General Motors halves or terminates its orders.
The results of the ratification vote and a copy of the contract extension was posted by UAW Local 402 to its members.
Other stipulations highlighted in the tentative agreement focused on areas such as job security, signing bonuses, wages, lump sums and wage progression tables.
As part of the agreement, employees will get a 4% pay raise on Oct. 7, 2024.
In addition to wages increasing by 4%, new hire wage rates for hourly-paid employees will be increased by $2 per hour and that would go into effect on the same day in October 2024.
The agreement also stated that all employees who have reached the maximum wage or salary rate as of Oct. 1, 2025 and are on active or laid off status as of that date will receive a lump sum payment equal to 4% of “qualified earnings” as defined in the current Main Labor Contracts with the company.
The tentative agreement also include health and welfare benefits, including that all weekly employee premium contributions and other related benefits would remain unchanged for the duration of the extension agreement.
However, due to Navistar no longer being a publicly traded company, there will be lump sum payments in lieu of profit sharing.
Further information regarding the contract extension agreement and the reasons behind it were not provided to this news organization as UAW Local 402 president Chris Blizard did not respond to comment as of Thursday afternoon.
Representatives of Navistar said that the contract extension was ratified and approved by a majority of voting UAW members, including at the Dallas Parts Distribution Center, Atlanta Parts Distribution Center and the York Parts Distribution Center office location.
“We are glad we were able to work with our UAW partners to come to a mutually beneficial agreement,” said Tim Powelke, Labor Relations director at Navistar. “We value our partnership with the UAW and will continue to work closely with them to competitively build our vehicles, deliver the best quality and service, and grow market share.”
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