Valeo Electrical Systems Inc (VESI) has announced that it has reached a ‘tentative agreement’ with IUE-CWA Local 509 on amendments to the union’s current labour contract. The agreement is subject to approval by bargaining unit employees, who are scheduled to vote on ratification on May 5.
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Commenting on the agreement, 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 has 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.
VESI has indicated that, pending the ratification vote by the bargaining unit employees, VESI and Local 509 have agreed not to provide public comment on the details of this tentative agreement.
