Navistar ends three-month impasse over labour deal

WARRENVILLE, Ill. (Oct. 28, 2002) — Navistar International has announced a tentative five-year labour agreement involving the 7,100 workers of its main subsidiary International Truck and Engine.

The tentative deal, agreed to with leaders of the United Auto Workers, breaks a three-month stalemate in negotiations. The old contract was due to expire Oct. 1, but was extended on a day-to-day basis. Hampering negotiations until now was a two-year industry slump which forced the company to sharply reduce operations in Springfield, Ohio, its main truck plant. The company also announced earlier this month it would be closing its heavy truck assembly plant in Chatham, Ont. next summer. The move will result in the loss of 2,200 jobs.

Navistar also froze 900 jobs when it halted production of medium-duty trucks at its Springfield plant last week. Production of heavy-duty truck cabs and hoods for school buses at a body plant will also cease this week. The company did not know when it would resume production.