United Auto Workers at Dana Holding Corp. (DAN) ratified a new
three-year labor agreement, a pact that covers about 2,500 workers
and is the first contract between the parties since the auto-parts
maker exited bankruptcy in early 2008.
According to UAW executive Cindy Estrada, the new contract
provides members with a profit-sharing plan, a combination of
general wage increases and lump sums and maintained the current
level of health care benefits while keeping premium share increases
at minimal levels.
The contract, which will expire in June 2014, covers workers at
13 facilities in Michigan, Ohio, Illinois, Texas, Missouri,
Pennsylvania, Kentucky, Tennessee and Wisconsin. In addition to the
framework agreement, the UAW said the contract covers local issues
such as vacation, transfers, job postings and attendance.
The pact comes as the maker of axles, driveshafts and
thermal-management products has seen sales improve amid a rebound
in light vehicles, after the auto industry suffered in 2009. The
company last month reported a narrower fourth-quarter loss as the
company controlled costs and boosted sales in all but one of its
main business segments.
Dana's shares were down 1.4% to $16.92 in recent trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com