Fort Wayne Foundry Workers Approve New Contract

Wage cuts in exchange for guaranteed employment

Union workers at two Fort Wayne Foundry plants voted to approve their leadership’s agreement on temporary wage cuts exchange for job guarantees, according to local news reports. The Glass, Molders, Pottery, Plastics, and Allied Workers Intl. ratified the contract changes last week, according to the Fort Wayne (IN) News-Sentinel.

Workers at a machining plant and a third foundry in Columbia City, IN, never accepted the initial proposal. Those workers are represented by the United Auto Workers union.

Fort Wayne Foundry asked the workers to accept a 10% cut in pay and to contribute about $8 to 20/month to their health-insurance coverage program. Previously, the workers paid no insurance premiums. The company’s goal is to manage its cash-flow more effectively in order to meet manufacturing costs.

The company produces cast-aluminum engine manifolds for General Motors Corp.

The new contract runs for 39 months and replaces a contract that would have expired in July 2007. In exchange for the employees’ concessions, Fort Wayne Foundry guaranteed 40-hr/week employment to all current employees at the two foundries, which will remain open during the period. Also, over the period of the contract the wages will be restored to previous levels in three stages.

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