The lump sum payments, which include a $2,000 signing bonus, a $1,000 profit-sharing payout, and a 4-percent lump sum payment for workers this year and 3-percent lump sum payments in 2020 and 2022, were a major point of contention last week as UAW’s Jan. 17 deadline approached.
But since Navistar did not view the contract as ratified until the local contracts were passed, Navistar spokeswoman Lyndi McMillan said the payouts couldn’t be granted by that day. The contract would have had to be ratified on voting day in December for that day to remain the deadline.
UAW’s national office in Detroit sent a letter Jan. 17 to local UAW’s announcing that the union and Navistar had mutually reached an agreement to extend the deadline to Jan. 31 and Feb. 7 for different lump sum payouts in the agreement, Blizard said.
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In additional to the payouts, major focuses of the national agreements included eliminating the two-tier wage system. Other highlights include pension plan improvements and language to keep the contract intact in case the company is sold or merged.
In the local agreement, UAW was focused on preventing major changes to work rules, including job movement based on seniority. McMillan previously told the Springfield News Sun that UAW and Navistar met daily to negotiate in the days leading up to the tentative agreement.
“This contract will benefit both our employees and the company,” said Mark Hernandez, senior vice president of global manufacturing at Navistar. “It provides significant economic benefits for our employees, and also allows the company to implement team concepts at our Springfield plant that will set the plant up for long-term success and continue to improve quality, safety and cost.”
There is also a specific agreement for skilled trade workers that those employees vote on, which did not pass as only 47 percent voted yes. But it will have no bearing on the ratification of the local agreement, Blizard said.
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