Valeo has announced that members of Local 509 IUE-CWA voted to approve revisions to the labour union’s collective bargaining agreement with Valeo Electrical Systems, Inc. (VESI) at the Rochester (New York) facility.
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The contract changes include:
* Instituting multiple attrition programs that provide incentives to cushion employees as they move into retirement or new jobs and that establish a process for reducing the workforce to adequate levels
* Converting the health care program to a community-based model with substantial reductions in premium costs
* Restructuring wage packages to contain costs during the contract period.
Valeo says that the expected cost of these changes is in line with the level of provisions in the Group’s 2001 consolidated accounts.
Valeo Electrical Systems announced last month that it had reached a ‘tentative agreement’ with IUE-CWA Local 509 on amendments to the union’s current labour contract. The agreement was subject to approval by bargaining unit employees.
Commenting on the agreement last month, VESI executive vice president and general manager, Rochester site, Walter Kneuer said: “This agreement, which has been approved by a unanimous vote of Local 509’s executive board, represents an opportunity to secure a viable future for VESI in Rochester. An approval by the bargaining unit employees will keep us on track to emerge from Chapter 11 by 2003.”
VESI filed for Chapter 11 on December 14, 2001 ‘to protect its operations in the face of its difficult competitive situation’.
IUE-CWA had claimed that Valeo filed for bankruptcy in December 2001 in an attempt to void an eight-year collective bargaining agreement it signed in August 2000.
