After two contract extensions that lasted over three years and negotiations that have been ongoing for the past several weeks, Mitsubishi and the UAW have come to a tentative labor agreement. Although most foreign automakers are not saddled with union contracts, Mitsubishi’s Normal, Illinois plant is staffed by UAW Local 2488 – thanks to a partnership with Chrysler in the 1990s.
Although the details of the contract are being withheld until the contract is ratified, the new deal will end turmoil at the Normal plant that dates back to 2005. Mitsubishi has extended its contract twice with the UAW since 2005, with the union even accepting a $4 an hour wage cut in 2006. The Mitsubishi-UAW contract officially expired on September 5th, with talks ending on September 6th. The two sides began talks again on September 24th, with an agreement being reached earlier on Friday.
Although a three year contract extension and voluntary wage cuts are almost unheard of with the UAW, the concessions were necessary due to Mitsubishi ’s waning U.S. sales. The Normal plant was designed for a production capacity of 240,000 vehicles annually, but is only operating at about a fourth of total capacity. The plant expects to churn out 68,000 Galants, Eclipses and the Endeavor SUVs this year, although the plant’s one shift is capable to producing up to 135,000 vehicles per year, according to Automotive News.
No word on when Local UAW 2488 will vote on the new contract, be we expect it to be ratified relatively quickly.
