Navistar, union agree to 5-day contract extension

NEW YORK, Oct 1 Reuters reported that truckmaker Navistar International Inc. said on Tuesday it has reached an agreement with its union workers to extend their labour contract up to five days, averting a strike by 7,200 employees.

The temporary extension comes as members of the United Auto Workers were set to walk out over issues of health care benefits and work rules.

Union members work at four truck and engine-making plants and in August voted to strike unless a new agreement or an extension of their three-year-old contract was reached.

The current contract was due to expire at midnight September 30. Talks between the company and the union began in July.

The new extension is subject to termination with 24 hours advance notice by either the company or union, Navistar said, but truck and diesel engine production will continue at current levels during the contract extension.

The company has also said it has plans for maintaining production if a strike should occur.

The UAW represents about 7,200 active and inactive employees in manufacturing plants in Indianapolis and Fort Wayne, Ind., and Melrose Park, Ill., and Springfield, Ohio.

Navistar, which has reported a string of earnings losses this year and said it will lose money again in its fiscal fourth quarter, has said it is seeking more flexible production scheduling and manageable health care costs in its negotiations with the UAW.