Although most foreign automakers aren’t saddled with union commitments, Mitsubishi has ties with the UAW that dates back to the company’s tie-up with Chrysler in the 1980s. That connection means contract negotiations are inevitable and the Japanese automaker has begun the latest round of talks with the UAW.
Although Mitsubishi i s just now sitting down at the negotiating table with the UAW, contract talks have actually been suspended for the last three years. UAW Local 2488 – which staffs Mitsubishi’s Normal, Illinois production plant — agreed to postpone contract talks in 2005 due to Mitsubishi’s sagging U.S. sales.
In 2006, the UAW agreed to extend the contract and accept a temporary $4 an hour wage cut, but the contract is now slated to expire one minute before midnight on August 28th, according to Automotive News.
The Norma plant – which opened its doors in 1988 through a 50-50 joint venture with Chrysler – produces the Galant, the Eclipse and the Endeavor SUV. The plant has the capacity to produce 240,000 vehicles annually, but is currently only churning out about 68,000 units per year.
Chrysler ended its partnership with Mitsubishi i n 1991.
