UAW Members at Mitsubishi Ratify New Four-Year Labor Agreement

    DETROIT, Aug. 27 Members of UAW Local 2488, Region 4,
voted to ratify a new four-year agreement with Mitsubishi Motor Manufacturing
of America (MMMA) by a four-to-one margin.  Eighty-three percent of the
members voted in favor of the new agreement during a meeting on Sunday,
August 26, at the Illinois State University in Normal.

    Approximately 2,800 UAW production and skilled trades members of UAW Local
2488 work at the MMMA facility in Normal, Illinois where they produce the
Mitsubishi Eclipse coupe, Mitsubishi Eclipse Spyder convertible, Mitsubishi
Galant sedan, Chrysler Sebring coupe and Dodge Stratus coupe.

    Following the expiration of the previous agreement without a settlement
having been reached, UAW members went on strike early Friday morning,
August 24.  The parties reached a tentative agreement approximately 30 hours
later at 6:40 a.m. Saturday, August 25, 2001.

    "This is an excellent contract.  I applaud the solidarity of our
membership at Mitsubishi and the skill of our bargaining team," said UAW
President Stephen P. Yokich.

    "We met our goals and maintained our constructive relationship with MMMA,"
said UAW Vice President Nate Gooden, who directs the union's Transnational
Department.  "The Mitsubishi workers demonstrated tremendous solidarity.  The
ratification result demonstrates their satisfaction with the process."

    "The strong support demonstrated by our members at Mitsubishi throughout
this entire set of negotiations resulted in a very short strike and produced a
very good contract," said Dennis Williams, director of UAW Region 4.  "A
contract, I might add, that is good for our members at MMMA, good for the
company, and good for the community."

    According to Scott Andrews, bargaining chairman, UAW Local 2488, "This was
the most difficult set of negotiations we have ever experienced here.  This
membership fought and gained significant improvements in wages, pensions,
benefits, ergonomics, and job safety.  The solidarity of this membership is
truly responsible for the bargaining team's ability to secure this agreement."
 
    UAW Local 2488 President Justin West said, "Without the workers standing
up for their rights and their working conditions, the achievements made in
this agreement could not have been accomplished."

    The new agreement includes a $1,350 lump sum payment for UAW MMMA workers,
an immediate fold-in of $1.52 COLA into the hourly base wage rate, plus base
wage rate increases of $0.67 for production and $0.78 for skilled trades in
September 2001.  In March 2003, the UAW MMMA production workers will receive
an hourly base rate increase of $0.69, and skilled trades will receive $0.81.
In subsequent years of the agreement, UAW MMMA workers will receive wage
increases or lump sum payments based on the improvements made at
DaimlerChrysler in the next round of bargaining in 2003.

    The terms of the new pact also provide a one-time only special early
retirement window with no reduction in regular monthly benefits for UAW MMMA
workers who are age 57, or more, with seven or more years of credited pension
service as of January 1, 2002.  In addition, these retirees will receive an
additional monthly supplement of $350 until age 62 plus one month, and will
receive enhanced health care coverage, including dental and vision coverage up
to age 65.  This special retirement window will be available for those
retiring between January 1, 2002 and March 31, 2002.

    The new agreement provides for substantially improved pension benefits in
three steps for future retirees during the life of the agreement.  Beginning
October 1, 2001, the per month per year of credited service benefit increases
by $3.25 over the current pension levels, raises another $2.00 on October 1,
2002, and increases by another $2.20 on October 1, 2003.
 
   Current retirees will receive a $550 lump sum payment, and surviving
spouses of deceased retirees receiving ongoing monthly benefits will receive a
$330 lump sum payment in each year of the new agreement.  Additionally, the
surviving spouse retirement security benefit will increase the survivor
pensions to 60 percent of the retiree's benefit, up from the current 50
percent.  All current and future retirees will also be able to participate in
the Legal Services Plan under the new agreement.
 
   The new agreement made improvements in many areas of health care benefits,
including prescription drugs, vision care, hearing aid benefits, and
preventive medicine.  Improvements were also made in life insurance, sickness
and accident benefits, and long-term disability benefits.  In addition, the
Education Assistance Program tuition reimbursement benefit for UAW MMMA
workers was raised from $2,100 to $2,500 per year, and raised from $500 to
$750 per year for their dependents.

    The new contract also includes significant health and safety protections
in a number of areas, including the creation of Ergonomic Improvement Teams
staffed by top management and a UAW ergonomic evaluator.  Three (3) UAW
ergonomic evaluators will each be allotted sixteen hours per week to conduct
ergonomic activities, and all jobs will be evaluated every two (2) years to
monitor the progress on reducing the total plant wide ergonomics risk.

    Election Day will be a paid holiday for UAW MMMA workers in 2002 and 2004
under the terms of the recently ratified agreement, similar to a provision in
the UAW contracts at Ford, GM, and DaimlerChrysler.

    The new four-year agreement became effective upon ratification by the
membership and expires at 11:59 p.m. on August 25, 2005.