Labor Negotiations Cease with CAW Local 1941
TROY, MI - June 4, 2006: ArvinMeritor, Inc. announced today that a tentative agreement was not reached with the Canadian Auto Workers (CAW) Local 1941 union bargaining committee at the Tilbury, Ont., Canada Commercial Vehicle Systems (CVS) facility, prior to the expiration of the contract which occurred at midnight. As a result, ArvinMeritor Canada has suspended operation at the facility until a collective agreement is ratified.
"We have presented our fourth -- and final -- economic offer to the union bargaining committee, said Mark Parris, Tilbury's site manager. "The CAW Local 1941 bargaining committee has been unwilling to agree to any of these proposals. Because the committee refuses to present the company's final offer to its members, we plan to call on the Ministry of Labour in Ontario to conduct a secret ballot vote with our workforce in Tilbury so that employees will have an opportunity to determine the final outcome."
"The economic realities of our industry require that we, as a global corporation, take actions which improve our cost structure and ensure the future stability of the company -- and the Tilbury facility, said Pedro Ferro, vice president and general manager of Braking Systems for ArvinMeritor's CVS business group. Certain modifications to the previous collective agreement are necessary for this facility to remain competitive in today's challenging automotive environment."
Ferro added, "During this time, we are focused on meeting our customers' requirements and have contingency plans in place to deliver on that commitment."
ArvinMeritor will continue to supply commercial vehicle brakes and related components to customers from its facilities in Frankfort, Ky. and Manning, S.C.
About ArvinMeritor
ArvinMeritor, Inc. is a premier $8.8 billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. Headquartered in Troy, Mich., ArvinMeritor employs approximately 29,000 people at more than 120 manufacturing facilities in 25 countries. For more information, visit the company's Web site at: http://www.arvinmeritor.com/.