Tower Automotive reaches deal with unions

Just a few months ago, based on its threat to cancel union labor contracts, Tower Automotive appeared on the brink of a work stoppage - an event that would have halted a significant amount of North American vehicle production. Now we can all breath a bit easier, as the bankrupt supplier has reached a tentative deal with the United Auto Workers and United Steelworkers.

Details of the agreements have not yet been released, but presumably it's somewhat sweeter than the original proposal floated to the workers, which would have cut wages by $2-3, frozen the pension plan, and significantly raised health care costs. Tower's previous contracts were not nearly as "fat" as those from other manufacturers currently in the news, with wages reportedly in the $13-17 range.

[Source: Reuters]

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