DETROIT -- Tower Automotive Inc. has agreed to withdraw its bankruptcy-court petition to void labor contracts after concessions announced Friday by the UAW and the United Steelworkers of America.
UAW members at Tower's Bluffton, Ohio, plant accepted a wage reduction of 75 cents an hour, the UAW said in a news release. Tower, of Novi, Mich., had scheduled to close the Bluffton plant without the package that included new work rules, reduced vacation and more employee participation in health care costs.
Hourly workers represented by the Steelworkers union at Tower's Elkton, Mich., plant accepted wage concessions of $1 an hour. "Our goal now is to help this company emerge from bankruptcy protection and return as a strong player," UAW Vice President Bob King said in a statement. About 1,000 workers are covered in the agreement.
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