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Workers at employee-owned plant settle.

A possible closedown of employee-owned Hyatt Clark Industries, Clark, NJ, was averted when United Auto Workers Local 736 agreed to a contract. The settlement came at the deadline set by General Motors Corp., which had announced that it would shift to other suppliers of roller bearings if there was a work stoppage. (GM provides 85 percent of Hyatt's busness.) The plant had been owned by General Motors until October 1981, when the employees purchased it to avert a scheduled shutdown. To help finance the acquisition, the employees had agreed to a number of cuts in compensation and changes in work rules. (See Monthly Labor Review, January 1982, p. 22.)

The new 3-year agreement, negotiated in mid-December, provided for 50 cents an hour wage increases in the first and second years and 55 cents in the final year. About 1,250 workers were involved.

To some extent, the negotiations were slowed by disputes between Hyatt and the union members over the degree of participation in management that the workers should be given. The workers contended that their input was far short of the level anticipated when the plant was purchased, while management maintained that any increase in the current level would hamper production.
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Publication:Monthly Labor Review
Date:Mar 1, 1985
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