NOVI, Mich. (AFX) - Hourly workers at Tower Automotive Inc. plants in Michigan and Ohio have voted to ratify amended labor agreements, resulting in a decision by Tower to keep open an Ohio plant that had been slated to close, according to the two unions that represent the employees.
The Novi, Mich.-based auto parts supplier, which filed for Chapter 11 bankruptcy protection in February 2005, also agreed to withdraw motions seeking court approval to void its collective bargaining agreements with the United Auto Workers and the United Steelworkers, the unions jointly announced Friday.
The new agreements are subject to court approval.
'We've worked together with Tower to solve difficult issues with a goal of preserving U.S. manufacturing jobs,' UAW Vice President Bob King said. 'Our goal now is to help this company emerge from bankruptcy and return as a strong player in the U.S. auto industry.'
A telephone message seeking comment was left for a Tower spokesman.
In Bluffton, Ohio, UAW members voted to accept wage reductions of approximately 4 percent, or about 75 cents per hour, according to a news release issued by the unions.
More than 265 people work at the northwestern Ohio factory, which makes stampings and assemblies for Ford Motor Co. and DaimlerChrysler AG.
The company announced in May that more than 250 jobs at the plant would be eliminated during the next few months as Tower moved most of its production to other locations. The remaining workers were to remain for an undetermined amount of time, producing frame rails for Ford Econoline vans.
USW members in Elkton, Mich., voted to accept wage reductions of about $1 per hour, the unions said.
In addition, UAW members at Tower's plant in Clinton Township, Mich., ratified a two-year contract extension, with no major changes in wages or benefits.
Contracts at UAW-represented plants in Plymouth and Traverse City, Mich., and in Kendallville, Ind., will continue without changes for the terms of the respective agreements.
USW members at Tower's plant in Milan, Tenn., which is scheduled to close later this year, voted to accept a severance agreement. UAW members at a Granite City, Ill., plant that will also close voted down a proposed severance agreement, the unions said.
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