Information regarding the vote and a copy of the contract extension was provided by UAW Local 402, which represents assembly production workers as well as those in skilled trades at Navistar’s Springfield plant.
The ratification vote in Springfield was to focus on those union members, as the tentative agreement will extend the union contract with the company to 2026.
Additional details regarding the ratification vote as well as the contract extension agreement was not provided to this news organization, as UAW Local 402 president Chris Blizard had not responded to a request for comment Wednesday.
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, all employees who are on active or laid off status on the date that the agreement is ratified will receive a lump sum payment of $5,000 per employee.
The agreement went over several 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, if approved, will 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.
The agreement also talked about several other things such as holidays, vacation periods, benefit continuation for laid off employees as well as those who are not eligible for disability benefits.
This news organization did reach out to representatives of Navistar. However, they declined to comment until after the ratification vote concluded.
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