Hourly workers at two Tower Automotive plants have voted to accept pay cuts that will ensure their plants remain open as the supplier struggles to emerge from bankruptcy. Tower had asked a judge for the power to cancel union contracts and cut workers as it saw fit, but the acceptance of wage reductions at these two plants have prompted the company to withdraw its request.

About 2,100 hourly workers will be affected by these pay cuts at plants in Bluffton, Ohio and Elkton, Michigan. Bluffton UAW members will be receiving a pay cut of about 75 cents an hour, while Elkton workers will see their hourly wages drop by about $1. Another plant run by Tower Automotive in Clinton Township, Michigan also voted on and approved a two-year contract extension with no changes. Tower Automotive had reached these tentative deals with the UAW and USW in late July and have been waiting since that time for union members to ratify the arrangement.

Clearly members of the United Auto Workers and the United Steelworkers of America that represent these facilities realized they would either have to accept a pay cut or risk the closing of the plants all together.

[Source: Detroit Free Press]

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