Latest Solidarity Issue

UAW members ratify new contract with Dana Holding Corp.

03/22/11

Labor agreement covers more than 2,500 workers in 9 states

DETROIT - UAW-represented employees at Dana Holding Corp. have ratified a new, three-year Global Framework Agreement. The contract was approved by a majority of UAW members at Dana in voting March 18 through today.

The labor agreement covers approximately 2,500 workers at 13 Dana facilities in Michigan, Ohio, Illinois, Texas, Missouri, Pennsylvania, Kentucky, Tennessee and Wisconsin. In addition to the framework agreement, each local is covered by a local agreement that addresses plant-specific issues such as vacation, transfers, job postings and attendance.

It is the first agreement between the UAW and Dana since the automotive parts supplier emerged from Chapter 11 bankruptcy in January 2008.

"The new contract provides members with the first-ever Dana profit-sharing plan, a combination of general wage increases and lump sums, and despite tremendous increases in the cost of health care, UAW members maintained their current level of benefits while keeping premium share increase at minimal levels," said UAW Vice President Cindy Estrada, who directs the union's Competitive Shop/Independents, Parts and Suppliers (IPS) Department.

"Our members sacrificed and stood solid with the company as it reorganized. This agreement allows our members the opportunity to share in the company's success," Estrada added.

"This contract is an example of the realistic, cooperative and collaborative relationship that helps keep companies vital and provides workers with fair compensation and benefits," said UAW President Bob King.

The contract cover workers represented by 11 UAW locals, including: Local 9, Milwaukee; Local 644, Pottstown, Pa.; Local 710, Columbia, Mo.; Local 771, Auburn Hills, Rochester Hills and St. Clair, Mich.; Local 1765, Lima, Ohio.; Local 1948, Sterling, Ill.; Local 3057, Longview, Texas; Local 3058, Louisville, Ky.; Local 3062, Danville, Ky.; Local 3064, Dry Ridge, Ky.; and Local 9025 in Paris, Tenn.

The contract will expire in June 2014.

 

Dana deal protects wages, health care

UAW, USW WORKERS IN 6 STATES OK CONTRACT


Members of the UAW and the United Steelworkers (USW) have overwhelmingly ratified an agreement with Dana Corp. for workers in Ohio, Pennsylvania, Michigan, Texas, Kentucky and Indiana.

Members approved the four-year agreement by 86 percent on July 24.

The deal, approved July 27 by a U.S. bankruptcy court, protects wages and health care for active workers and pensions and health care for retired workers. Also, it helps Dana emerge from bankruptcy with the potential for future success while preserving jobs and defending the standard of living for UAW and USW workers.

“We went from being closed to gaining 130 new jobs,” said Scott Williams, president of UAW Delphi Local 1765 in Lima, Ohio. “It wasn’t without sacrifice, but we gained protections that we would not have if there was no union.”

The agreement covers more than 2,300 UAW members and 6,200 UAW retirees. belonging to UAW locals in Lima; Pottstown, Pa.; Auburn Hills and Rochester Hills, Mich.; Longview, Texas; and Elizabethtown, Ky.; and for USW locals in Fort Wayne and Marion, Ind., and Henderson, Ky.

“This agreement will prove to be an important victory snatched from the jaws of a failed bankruptcy system. It is an example of the UAW using a combination of tried and tested bargaining strategies along with innovative new capital strategies,” said UAW Vice President Bob King, who directs the union’s Independents, Parts and Suppliers Department. “These strategies, along with great solidarity from our local union leadership and membership, made this victory for our UAW Dana members and all UAW members possible.”

Also, the contract provides requirements for the increased likelihood of future profitability for both Dana and union workers. The requirements include limitations on debt, minimum liquidity and a cap on new cash investment.

Centerbridge Capital Partners, an investment company recruited and recommended by the UAW and USW, will invest $500 million in Dana and sponsor the plan to help Dana exit bankruptcy.

“Our members at Dana did a tremendous job under difficult circumstances,” said UAW President Ron Gettelfinger, “and we were able negotiate an agreement that protects workers and their families.

“But this fight doesn’t stop at the bargaining table. We also need political change in Washington, D.C., to prevent companies from attempting to manipulate the bankruptcy laws in order to evade their responsibilities to workers and communities.”

Also in the contract, Dana will pay more than $750 million to Voluntary Employee Beneficiary Association (VEBA) trust funds for payment of health care to UAW and USW current and future retirees. This represents more than 70 percent of the projected cost of health care benefits for retirees. Other agreement highlights include:

• Voluntary buyouts of up to $45,000 for eligible employees.

• A new defined-benefit pension plan for all UAW and USW Dana workers, administered by the Steelworkers Pension Trust.

• Post-bankruptcy emergence bonus of common stock valued at approximately $6,000 for each active member with at least one year of seniority.

• A moratorium on moving work out of UAW and USW plants to nonunionized facilities.

• A commitment to source new product lines to UAW- and USW-represented worksites.

Dana workers approve four-year agreement

07/25/07

UAW members at Dana plants in Indiana, Kentucky, Michigan, Missouri, Ohio, Pennsylvania and Texas approved a new four-year agreement that protects wages and health care for active workers, and pensions and health care for retired workers.

The agreement, which also covers members of the United Steelworkers (USW) at three facilities in Indiana and Kentucky, also brings a commitment from investment firm Centerbridge Partners to invest $500 million and to sponsor a reorganization plan that allows Dana to emerge from bankruptcy.

“Our UAW and USW bargaining teams worked very hard to craft this deal,” said UAW President Ron Gettelfinger. “We are extremely pleased that an overwhelming majority of members voted to ratify the agreement.”

“This agreement creates a path to success for Dana, Dana workers and the communities where we live and work” said UAW Vice President Bob King, who directs the union’s Independents, Parts and Suppliers Department. “It protects our members and retirees, and for the first time we negotiated a commitment from the company to source work to UAW- and USW-represented plants.”

Ratified Tuesday by workers in all eight locations, the contract covers more than 2,300 UAW members and 6,200 UAW retirees. UAW members approved the pact by 86 percent.

“We were facing a world of hurt,” said Local 644 Plant Chairman Tom Alderfer, who also served on the bargaining committee. “When we went into this, the company wanted to cut our pay by $5 an hour and we were told we would lose our health care and most of our pension.

“Considering where we were and where we ended up, it’s nothing short of a miracle,” said Alderfer. “This agreement maintains our pay and benefits. Now our members have piece of mind knowing that they can continue to provide for their families.”

Additionally, the company will contribute over $750 million to Voluntary Employee Beneficiary Association (VEBA) trust funds, which will provide payment for health care to UAW and USW current and future retirees. This represents more than 70 percent of the projected cost of health care benefits for retirees.

Other highlights of the agreement include:

 

  • Voluntary buyouts of up to $45,000 for eligible employees.

     

  • A new defined benefit pension plan for all UAW and USW Dana workers, administered by the Steelworkers Pension Trust.

     

  • Post-bankruptcy emergence bonus of common stock valued at approximately $6,000 for each active member with at least one year seniority.

     

  • A moratorium on moving work out of UAW and USW plants to non-unionized facilities.

     

  • A commitment to source new product lines to UAW- and USW-represented worksites.

New contracts at all UAW-Dana and USW-Dana locations will have a common expiration date of June 1, 2011.

 

 

UAW reaches national framework agreement with Dana

07/06/07

DETROIT - The United Auto Workers announced today that it has reached a national framework agreement with Dana Corporation to settle outstanding labor issues and assist the firm in emerging from bankruptcy proceedings.

As part of the agreement, Centerbridge Partners, a New York-based investment firm, has agreed to invest $500 million in Dana and will sponsor the company’s reorganization plan.

“This settlement would not have been possible without the involvement of Centerbridge Partners,” said UAW President Ron Gettelfinger. “They’re going to play a key role in the future of Dana, and we look forward to working with them to help this company succeed in the marketplace.”

“These were long and difficult negotiations when many times our efforts were hindered by very anti-worker bankruptcy laws and procedures,” said UAW Vice President Bob King, who directs the union’s Competitive Shops/Independents, Parts and Supplier Department.

“Because of great solidarity and teamwork of our locals, our members, and our international unions we feel we did the best job possible for our active and retired members and achieved a number of important objectives for the future benefit of our members.”

“We insisted that the company limit its debt, have minimum liquidity and obtain new cash investment in order to have a chance at a positive future, and Dana agreed to our conditions,” said King. “We’re not interested in a repeat of past mistakes, when the company went from one financial crisis to another. Our members are committed to working as hard as possible to build quality products for Dana customers – and we expect and deserve an equal commitment from management.”

The United Steelworkers (USW) also participated in negotiating the framework agreement with Dana, which includes the modification and extension of collective bargaining agreements at certain locations, and new collective bargaining agreements at other locations. The agreement is subject to ratification by UAW and USW members and approval of the U.S. Bankruptcy Court.