About 100 accept Navistar buyout

SPRINGFIELD — About 100 Navistar employees have agreed to take a buyout offered in the October 30 contract between the company and United Auto Workers Local 402 and 658.

The offer to laid-off employees, not eligible for retirement, expired on Nov. 30 with 98 employees signing up to sever their relationship with the company, said Jason Barlow, president of UAW Local 402.

Each resigning employee will receive a lump sum payment of $17,500 in addition to the $1,000 signing bonus for the Oct. 30 contract ratification.

A second possible round of resignations will occur when retirement-eligible employees decide if they will take a $17,500 retirement incentive package offered through Dec. 31.

There were approximately 780 employees on the company’s roll before the plant was idled during contract negotiations. About 300 of those were laid off prior to the October layoffs.

On Monday, about 200 laid-off production workers returned to the plant, joining about 165 workers who worked in the painting and stamping department throughout negotiations.

New models arrive in January.

The facility is ramping up for the arrival of the Class 7 and 8 models early next year, said Navistar spokesman Kyle Rose.

“We’ll expect to run the first pilot truck of the new models in January,” he said.

Springfield has the capacity to produce the variety of trucks the company is looking to bring in, Barlow said. “We’ll accept any work they want to bring us.”

Springfield has been guaranteed a minimum of 30 trucks a day through July; and 50 trucks minimum a day from August through the end of the contract.

Demand industry-wide is expected to be up about 25 percent next year. Navistar officials are expected to provide some projections later this month.

“I think by summer we are going to be building quite a few trucks,” Barlow said.

Contact this reporter at (937) 328-0347 or kmori@coxohio.com.

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