When union members walk back into the Mitsubishi Plant in Normal on Monday, they'll be working under a new four-year contract. Members of the United Auto Workers Local 2488 approved the pact this weekend by a 54 to 46 percent margin.

The more than 1200 workers traded pay and benefit cuts for job security. Mitsubishi like many auto makers in the U-S has faced tough times recently. In 2004, an entire shift was cut at the plant leaving 12-hundred workers out of a job.

In a statement, which you can read in full at the bottom of this story, Shiro Futaki, the president and CEO of Mitsubishi Motors North America says the company is extremely pleased with this agreement as Mitsubishi will be able to stay competitive and successful in the U.S. market.

UAW President Ron Gettelfinger out of Detroit issued this statement, "The bargaining team delivered an agreement that will protect jobs and provide four years of stability for our members and their communities."

Here's what will happen to workers when they clock in on Monday morning...
They'll be earning at least $4.75 an hour less. They'll also see increases in health care costs and a two-tier wage system.

The key gain for workers is no new layoffs for the length of the contract or through August 30th, 2012.

UAW FULL STATEMENT

For Release: Saturday, October 04, 2008

Mitsubishi workers ratify new four-year agreement

DETROIT -- A majority of the members of UAW Local 2488 in Normal, Ill., have voted in favor of ratifying a new four-year contract with Mitsubishi Motors North America.

"The bargaining team delivered an agreement that will protect jobs and provide four years of stability for our members and their communities," said UAW President Ron Gettelfinger.

"Job security and the viability of the Mitsubishi plant in Normal remained a priority during these talks," said UAW Vice President Jimmy Settles, director of the union's Transnational Department. "This contract addresses those needs and creates opportunities for our members and Mitsubishi to move forward in these uncertain economic times for the auto industry and the nation."

The new agreement expires Aug. 30, 2012 and covers 1,264 UAW members at Mitsubishi.

MITSUBISHI MOTORS NORTH AMERICA FULL STATEMENT

Mitsubishi Motors North America Announces
Ratification of UAW Collective Bargaining Agreement

Mitsubishi Motors North America (MMNA) today (Saturday) announced that UAW Local 2488 members have ratified an agreement that dramatically improves the ability of the company’s Normal, Illinois assembly plant to be a key player in the global success of Mitsubishi Motors.

“We are extremely pleased with this agreement,” said MMNA Manufacturing President & CEO, Shiro Futaki. “For our customers and dealers, the agreement underscores in no uncertain terms that Mitsubishi Motors is committed to being competitive and successful in the U.S. market.”

The agreement includes provisions guaranteeing that production will continue at the assembly plant in Normal, Illinois through August 2012. The pact also provides job security for more than 1,200 current UAW workers through the end of the agreement period.

Futaki praised the agreement as a symbol of his employees’ teamwork and determination to succeed. “The leadership of both the UAW and MMNA recognize the tough issues facing the U.S. automotive industry and we have worked together toward solving them,” he said. “This agreement continues a long tradition of partnership and cooperation between MMNA and the UAW.”

NEW CONTRACT DETAILS:

ECONOMIC

• Reduces current Production Associate base rate by $1.67 to new base rate of $24.00 Eliminate $3.08 COLA. Total $4.75 reduction.
• Reduces Current Maintenance Associate present base rate by $1.71 to new base rate of $28.50 Eliminate $3.08 COLA. Total $4.79 reduction.

MEDICAL BENEFITS

• Implements deductible and increases co-pay of covered medical expenses. Implements out-of-pocket maximum

PROVISION FOR LAID OFF WORKERS

• Any future recall would be at $16.80 (70% of base rate) and progress to $24.00.

NEW HIRE COMPENSATION

• New production associates are hired in at $14.00 and progress to $20.00
• New maintenance associates are hired in at $22.00 and progress to $25.00.

TERM OF THE NEW AGREEMENT

• The new agreement is effective October 6, 2008 and expires August 30, 2012.