News From USW: USW’s Agreement with Dana Protects Wages, Pensions and Benefits

GARY, Ind.--News From USW: The United Steelworkers (USW) announced today that a tentative agreement with Dana Corp., was reached yesterday that will facilitate the company’s emergence from bankruptcy while protecting the hard earned wages, benefits and pensions of active employees and retirees.

A key to the agreement was a $500 million investment by Centerbridge Partners, a New York-based investment firm, which is expected to help secure the future of Dana as it exits bankruptcy.

“The Centerbridge Partners investment was critical to getting the contract settled,” said USW District 7 Director Jim Robinson, who led contract talks for Steelworker union members. Workers at some Dana plants are represented by the United Autoworkers (UAW) union and they were also able to reach agreement covering their members.

The tentative agreement requires the company to limit its debt, have minimum liquidity and obtain new cash investment in order to secure its future.

“Our members are highly skilled and produce quality products,” Robinson said. “They will be relieved to put the stresses of bankruptcy behind them and focus on contributing with pride to a great American auto industry.”

The USW represents about 1,000 Dana Corp. employees at Marion and Ft. Wayne, Ind., and Henderson, Ky. The tentative agreement is scheduled to be ratified on July 20, following the printing and distribution of contract summaries.