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Workers exchange concessions for guaranteed jobs.

In the truck building industry, members of Auto Workers Local 9 8, employed by Navistar International Corp.'s Indianapolis, IN, engine plant, accepted a compensation cut of about $3 an hour in exchange for job guarantees. Navistar had sought a cut, contending that it could not proceed with a $150 million revamping of the plant needed to begin producing a 7.3 liter engine in 1990 for Ford Motor Co. During the negotiations, Navistar raised the possibility of subcontracting the engine production to a company in Kentucky, According to Navistar, this would have led to declining production in Indianapolis and a closedown by 1992.

The changes accepted by the 1,300 employees for the remaining 2 years of their existing 3-year contract include a freeze on quarterlycost-of-living pay adjustments, and an 8 -day reduction in paid annual vacations (maximum vacation is now 5 weeks). In return, the employees are guaranteed jobs through August 1, 1994.

In 1987, Navistar won similar concessions from 700 employees in the adjacent foundry, which provides castings for the engine plant.
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Title Annotation:Developments in Industrial Relations
Author:Ruben, George
Publication:Monthly Labor Review
Date:Nov 1, 1988
Words:175
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