CAW Members OK Labor Pact with Navistar

NEW YORK June 27, 2004; Reuters reported that International Truck and Engine Corp., the operating company of Navistar International Corp. said on Sunday that members of two Canadian Auto Workers (CAW) locals have ratified new labor contracts for Navistar's Chatham plant.

Members of CAW Local 127, which represents production and maintenance employees, and Local 35, which represents office employees, have ratified contracts that will run through June 30, 2009, modifying contracts scheduled to expire on Jan. 31, 2007, International Truck and Engine said in a press release.

In February, Navistar's board of directors approved the company's overall heavy truck strategy, which called for a total program investment of $300 million for the introduction of a new line-haul Class 8 truck, the news release said.

The new contracts maintain and improve manufacturing flexibility and provide for a purchased modular assembly strategy for the new line-haul truck scheduled to be introduced at Chatham and go into production in January 2007, International Truck and Engine said.