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Settlement Agreement Reached on New Freightliner Labor Contract at Mt. Holly Plant

17 December 2000

Settlement Agreement Reached on New Freightliner Labor Contract at Mt. Holly Plant

                    Employees Vote For Three-Year Contract

    PORTLAND, Dec. 17 Freightliner LLC and the United Auto
Workers (UAW) union announced ratification of a new three-year labor agreement
affecting approximately 2,350 employees at Freightliner's Mt. Holly Truck
Manufacturing Plant in Mt. Holly, North Carolina.
    The new contract provides for three annual wage increases.  The top wage
rate for the majority of employees in the truck assembler classification will
be increased to $21.00 per hour effective December 18, 2000, equivalent to the
top rate in all of the company's other U.S. truck manufacturing plants.
    At issue were bonuses paid and salary increases granted to all other
facilities during the past year.  Included in the agreement are a one-time
$2,000 retroactive bonus and a $500 partial wage differential payment to bring
the Mt. Holly plant to parity with the company's other non-UAW-represented
truck plants.  In addition, the company agreed to provide equity to Mt. Holly
in future recognition bonuses planned for or otherwise granted to its
employees.
    Also agreed to were some administrative changes to the current UAW
agreement.
    "We are pleased that a mutually acceptable agreement was achieved," said
James L. Hebe, CEO and President of Freightliner LLC.  "We want to continue
building trucks in Mt. Holly and keep good jobs in Gaston County."
    Employees are expected back at work on Monday, December 18.

    Freightliner LLC, headquartered in Portland, Oregon, is the leading heavy
truck manufacturer in North America.  Freightliner produces and markets Class
3-8 vehicles under the Freightliner, Sterling, Western Star, American
LaFrance, Orion and Thomas Built Buses nameplates.  Freightliner is a
DaimlerChrysler company, the world's leading commercial vehicle manufacturer.

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