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Navistar International, UAW Reach 5-Year Labor Agreement

October 28, 2002|From Reuters

DETROIT — Truck maker Navistar International Corp. said Sunday it had reached a definitive five-year labor contract with union workers at its U.S. plants.

The agreement covers about 7,100 United Auto Workers members. A company spokesman said about 54% of the union's members voted to ratify the contract, after it was hammered out in last-minute bargaining last week.

The Navistar spokesman declined to offer comment on the terms. UAW officials said that it included some concessions, including an agreement to perform obligatory overtime work and some lower health-care benefits.

Shares of Navistar rose 84 cents Friday to close at $21 on the New York Stock Exchange.

Warrenville, Ill.-based Navistar, which makes heavy- and medium-duty trucks, school buses and diesel engines under the International brand name, widened its fourth-quarter loss forecast to a range of 72 cents to 77 cents per share.

Navistar, under pressure to cut fixed costs and return to profitability, will begin making heavy trucks for the U.S. market in Escobedo, Mexico, next year.

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