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| NewsFriday, September 5, 2008 11:35 PM CDT |
No word yet on status of MMNA contract
UPDATED 11:30 p.m. NORMAL — The fate of the Mitsubishi Motors North America auto workers contract remained undecided late Friday night as talks continued. The current agreement between the United Auto Workers Local 2488 and Mitsubishi was set to expire at 11:59 p.m. Friday. Contacted at press time, shortly after 11 p.m., spokesman Dan Irvin said talks were continuing, but he could not characterize how they were going. Neither the union nor the company made any comment Friday night on the status of talks that started in mid-July, or on possible issues involved, including wage and benefit cuts or a two-tier wage system. The union, which has 1,261 members, voted by a 97 percent margin in early August to authorize a strike, according to the union’s Web site. The vote is a procedural step during the negotiation period, but an in-favor vote would authorize the union to strike if negotiations fail to result in a new contract. The current contract had been extended for two weeks just prior to its original Aug. 28 expiration as negotiations continued. To date, the only strike in Mitsubishi’s history was a one-day walkout in 2001. Like the rest of the automotive industry, Mitsubishi has had a challenging year. Its U.S. sales through August have dropped 22.4 percent, from 93,724 vehicles in 2007 to 72,727 in 2008. As a result of the diminishing sales, 105 union workers left the plant last month as part of a voluntary separation package. They received a lump-sum payment of $85,000 and three months of medical benefits. The plant now has 1,565 employees. Mitsubishi also has had other difficult times in recent years, most notably when it laid off 1,200 workers and eliminated its second shift in 2004. Later, as part of a wage and benefit cut agreement in 2006, Mitsubishi promised not to close the plant or seek involuntary layoffs through the end of the current contract. Workers received a promised $4 wage restoration in April, but management initially asked the union to consider a lump-sum payment instead. |
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