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Navistar-UAW job action ends.

Ending a 2-day work stoppage, negotiators for Navistar International Transportation Corp. and the United Automobile Workers (UAW) signed a new 3-year collective bargaining agreement, covering some 8,000 production, maintenance, and clerical workers nationwide. The major issue in the dispute was job security. (Navistar, formerly the International Harvester Co., is a major manufacturer of medium and heavy duty trucks and diesel engines.)

The contract, which parallels the recent UAW settlement in the automobile industry, calls for an immediate 3-percent wage increase, an additional 35-cent-an-hour increase for skilled trade workers, and lump-sum bonuses in the second and third years equal to 3 percent of an employee's annual earnings in the preceding 12 months (the average hourly wage at the expiration of the prior contract was $16.30).

The accord also provides for an enhanced job and income security program. Under this program, employees affected by market-related sales declines are guaranteed full pay when they are laid off for more than a total of 7 weeks in a year. Employees who are not eligible for these benefits are eligible, during the term of the contract, for increased "guaranteed" supplemental unemployment benefits for 26 to 52 weeks, at a rate of $200 a week (previously, $100) for employees who are collecting State unemployment benefits and $250 a week (previously, $150) for those who are not. In addition, the contract provides a greater incentive to recall laid-off workers by allowing the company to use laid-workers to temporarily fill jobs of employees on short-term leave.

Other terms call for increased pension benefits, including a $3.90 increase over the term of the contract (to $28.90) in the maximum monthly pension rate for future retirees, and six semiannual lump-sum payments of $150 each for current retirees; and a $230 increase over the term of the contract (to $1,600) in the monthly benefit level for early retirement ("30-and-out"). The contract also calls for continuation of the cost-of-living adjustment clause, which provides for quarterly allowances equal to 1 cent an hour for each 0.26-point increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers; the roll-in to wages of $1.67 in cost-of-living adjustment allowances earned under the prior contract; increased long-term disability benefits, from $1,255-$1,380 a month to $1,435-$1,580 a month; the establishment of a 401(k) savings plan; improved health care benefits for current and retired employees, including enhanced dental and vision benefits; and enhanced profit-sharing plan; improvements in the health and safety program, including a new ergonomics coordination committee; and an increase in holidays, from 45 to 47 over the term of the contract.
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Title Annotation:Navistar International Transportation Corp., United Automobile Workers; Developments in Industrial Relations
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Feb 1, 1991
Previous Article:General Dynamics settlement.
Next Article:Four-year dispute at Pan Am ends.

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