The UAW and bankrupt supplier Lear Corp. said today they have agreed on a tentative contract for about 700 hourly employees at seating plants in Arlington, Texas, and Wentzville, Mo.
Terms of the contract were not disclosed and will be presented to union members for ratification in upcoming days, the union said in a statement.
Lear, withered by production cuts at General Motors and other automakers this year, filed for Chapter 11 bankruptcy protection on July 7.
"The proposed contract terms are competitive and will allow Lear to continue supplying high-quality seating systems to GM from both locations for years to come, Lou Salvatore, president of Lears global seating operations, said in a statement.
The two plants supply seating components for GM's large SUVs and full-size vans, including the Chevrolet Tahoe, GMC Yukon, Cadillac Escalade, Chevrolet Suburban, GMC Savannah and Chevrolet Express.
Jim Wells, director of UAW Region 5, which covers 17 states, including Texas and Missouri, said: We are recommending a yes vote for ratification -- and as always, our members will have the final say on the agreement.
Lear, based in suburban Detroit, ranks No. 11 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $13.60 billion in 2008.
Reuters contributed to this report