Normal Workers Ratify Labor Pact

Workers at Mitsubishi Motor Corp.’s Normal, IL, plant have ratified a new labor pact that cuts their wages and keeps the plant open through August 2008, the auto maker says.

Members of United Auto Workers union Local 2488 voted by a 51:49 margin Sept. 1 to accept changes to the existing agreement.

The final pact calls for a $1.50 cut in hourly pay for all workers until April 2008; a $2.53 reduction in a cost of living allowance; deferral of 401 (k) matches until April 2008; and postponement of an incentive/performance improvement plan.

“I appreciate that our employees have made a commitment to make a difficult personal sacrifice to improve the future of (Mitsubishi Motors North America),” says MMNA’s manufacturing chief Shiro Futaki in a statement.

In return for the worker concessions, Mitsubishi has vowed not to lay off any workers at the plant until August 2008.

“There will be no layoffs and no plant closing in Normal for the next two years,” Ralph Timan, president-UAW Local 2488, says in a statement. “If the company had not given us that guarantee, we would not have agreed to change our contract.”

Local 2488 represents 1,500 active and 1,200 laid-off Normal workers. Mitsubishi eliminated Normal’s second shift two years ago this month as sales of the Eclipse, Galant and Endeavor models built there slumped.

The plant remains on one shift, as Mitsubishi’s U.S. sales are down 8.3% this year, according to Ward’s data.