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UAW NAVISTAR AGREEMENT RATIFIED

 DETROIT, Jan. 25 /PRNewswire/ -- UAW members at the Navistar International Corporation have voted by a substantial majority to ratify a new contract. The agreement was approved by a 77-percent majority of UAW production, maintenance, clerical and technical members voting at 11 local unions in Georgia, Illinois, Indiana, Maryland, Ohio and Texas.
 UAW Secretary-Treasurer Bill Casstevens, who directs the UAW- Navistar Department, welcomed the ratification saying, "Despite a number of burdensome economic issues facing both our members and the company, the UAW made meaningful gains in these negotiations."
 "We expanded our input and decision making on issues such as sourcing and plant closings, while permitting flexibilty in a few specified areas to ensure the long-term viability of the company," Casstevens continued.
 "We maintained the integrity of our contract and preserved the vast majority of the gains that we have won over the past decades," Casstevens stated.
 The new agreement provides two 3-percent lump-sum increases for active UAW-Navistar workers, one in 1993 and again in 1994. The quarterly cost-of-living (COLA) increase has been maintained without any additional diversions and the agreement provides 32 paid holidays. Retirees will receive a total of $1,000 in three lump-sum payments and surviving spouses will receive a total of $550 over the life of the agreement.
 The company agreed that no plant closings, phase outs or sales of any facilities will take place during this agreement without the approval of the union. In addition, the company agreed to remain "neutral" in any union organizing drives and to accept a "card count" to determine representation in an organizing campaign if the union contends that it has gained authorization from a majority of the affected workers. Further, the company agreed to extend the terms and conditions of this agreement to any facility whose workers have chosen UAW representation.
 A breakthrough was made in the areas of insourcing and outsourcing decisions. New joint committees, at both the national and local union level, will review all pertinent business information and, based on commonly agreed objectives, will jointly make sourcing decisions. The company also agreed on a 90-day moratorium on all sourcing decisions while the new structure and procedures are implemented.
 The parties agreed on "Equality of Sacrifice" provisions in which both UAW-represented and non-represented Navistar employees will share in the sacrifices and gains of the agreement. For example, the company will not grant incentive pay or bonuses to managerial employees unless there is also a payout to UAW-represented workers under the current profit-sharing agreement.
 Further, in recognition of the union's temporary suspension of the attrition replacement provision, the company agreed to replace non- represented employees only when there is a valid need. The company agreed to work with local union plant chairpersons to implement the "equality of sacrifice" provisions of the contract.
 In order to fairly and efficiently distribute health-care costs on a company-wide basis, the company agreed to move toward a single, company- wide health-care plan covering all active UAW and non-represented employees.
 A new Coordinated Care health-care plan for active workers has been negotiated in order to provide high-quality, easily accessible and cost- effective health care. The plan will be based on a select network of health-care providers who will provide a full range of services. UAW members will have the option of joining the network, joining an HMO (Health Maintenance Organization) or choosing non-network providers. The basic benefits of the Coordinated Care plan will be offered to retirees and surviving spouses who live in a network service area but who are not yet eligible for Medicare. Their benefit structure will differ slightly from those of active workers.
 In discussions held in December 1992, the parties also reached an agreement which provides a new framework for payment of retiree health and insurance benefits. That agreement establishes an "upside benefit" fund for the purpose of reducing retiree costs and/or improving benefits. Provisions of that agreement have been incorporated into the new 1993-95 agreement. The company will make profit-sharing contributions to the fund under a new profit-sharing plan providing for payments up to a maximum of 16 percent of eligible profits.
 The upside benefit fund will be governed by a five-member committee composed of two UAW appointees, two other appointees, and a chair approved by the U.S. District Court. In addition, until the base plan fund is fully funded, the UAW will have a right to select one member of the Navistar board of directors. Implementation of the modifications in the retiree benefits are subject to review by the U.S. District Court in Dayton, Ohio.
 The expiration date of this new agreement will be Oct. 1, 1995.
 -0- 1/25/93
 /CONTACT: Reg McGee of UAW Public Relations,313-926-5291/


CO: United Auto Workers ST: Michigan IN: AUT SU:

KE -- DE016 -- 8483 01/25/93 12:12 EST
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Publication:PR Newswire
Date:Jan 25, 1993
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