News From USW: Tower Workers Ratify New Pacts; Ohio Plant Saved as Company Ends Effort to Rescind Labor Contracts

PITTSBURGH--Aug. 25, 2006--News From USW: The United Steelworkers (USW) and the United Auto Workers announced today that union members at Tower Automotive plants in Bluffton, Ohio and Elkton, Mich. have voted to ratify amended labor agreements that will result in substantial costs savings for the company, which is in the process of restructuring under Chapter 11 of the U.S. bankruptcy code.

As a result, Tower agreed to maintain operations at the Bluffton, Ohio plant, which had been scheduled to close. The company also agreed to withdraw motions seeking court approval to void Tower's collective bargaining agreements with the UAW and the USW. The new agreements are subject to court approval.

"Members of both our unions had to face up to a tough situation," said Jon Geenen, Director of USW District 2. "It's a positive sign that we were able to resolve issues at the bargaining table, instead of through court action -- and we continue to believe that issues of this nature should be resolved through negotiation, not through use of a one-sided bankruptcy law which favors the interests of employers."

"We've worked together with Tower to solve difficult issues with a goal of preserving U.S. manufacturing jobs," added UAW Vice President Bob King. "Our goal now is to help this company emerge from bankruptcy and return as a strong player in the U.S. auto industry."

In addition, UAW members at Tower's Clinton, Mich. plant have ratified a two-year contract extension, with no major changes in wages or benefits. Contracts at UAW-represented plants in Plymouth, Michigan, Traverse City, Michigan and Kendallville, Indiana will continue for the term of the respective agreements without changes.

USW members at Tower's Milan, Tenn. plant, which is scheduled to close later this year, voted to accept a severance agreement. UAW members at Tower's Granite City, Ill. plant, which is also slated for closing, have voted down a proposed severance agreement.

In Bluffton, Ohio, UAW members voted to accept wage reductions of approximately 4 percent, or about 75 cents per hour. In Elkton, USW members voted to accept wage reductions of approximately $1 an hour. When the new contracts are in effect, production workers at these two plants will still earn the highest hourly wages of any unionized Tower workers.

USW and UAW members at both plants also agreed to combine certain work classifications, reduce paid vacation time, and increase employee payments for health insurance coverage.