Navistar, Chatham workers renegotiate labour deal; seek $15.4 million a year in aid

CHATHAM, Ont. (May 14, 2003) — Workers at the International Truck plant in Chatham, Ont., voted overwhelmingly yesterday in favour of a new agreement to save the plant which hinges on more than $50 million in government aid through January 2007.

Almost 90 per cent of production and office workers ratified a 3-1/2-year deal that would temporarily freeze a cost of living allowance and cut vacations and bonuses, among other concessions that amount to $47.7 million of cost reductions per year.

However, Navistar says it can save $63.1 million per year by shifting production of its 9000i Series tractors from its Chatham plant to a factory in Escobedo, Mexico.

“Government assistance is necessary to bridge the remaining cost reduction gap — $15.4 million per year” for the life of the union agreement, which would expire on Jan. 31, 2007, International vice-president Thomas Hough wrote in letters to Ontario Premier Ernie Eves and federal Minister of Industry Allan Rock. The letters were released by the CAW yesterday.

Last June, the union rejected demands for major concessions to reduce operating losses and workers at the plant went on strike for six weeks. In October, the company said it would close the Chatham plant this summer.