Cooper Tire & Rubber (CTB), Employees Reach Contract to End Lockout
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Cooper Tire & Rubber Co. (NYSE: CTB) and its workers have finally reached a new contract.
The new five-year deal ends a three-month plant lockout which cost the company millions of dollars as over 1,000 workers were out in the cold picketing. The new contract only received a 66 percent majority vote from the workers.
The terms entail “employees hired before 2009 will receive an $800 lump-sum payout through 2014. Workers hired after 2009 will receive a $1,200 lump-sum payout this year and next. Their hourly pay will be bumped by 10 cents starting in 2014. Employee health-care contributions remain unchanged,” the WSJ said.
The new terms of the contract also allow management to buyout some of its older and high-earning employees. Management will be allowed to buyout 25 “veteran workers” annually by offering them $1,000 payout for every year they were with the company.
The company believes costs related to the lockout may have totaled roughly $41 million over the past two quarters. Management expects expenses, due to hiring of temporary workers and training, may total $30 million alone for this quarter.
The new five-year deal ends a three-month plant lockout which cost the company millions of dollars as over 1,000 workers were out in the cold picketing. The new contract only received a 66 percent majority vote from the workers.
The terms entail “employees hired before 2009 will receive an $800 lump-sum payout through 2014. Workers hired after 2009 will receive a $1,200 lump-sum payout this year and next. Their hourly pay will be bumped by 10 cents starting in 2014. Employee health-care contributions remain unchanged,” the WSJ said.
The new terms of the contract also allow management to buyout some of its older and high-earning employees. Management will be allowed to buyout 25 “veteran workers” annually by offering them $1,000 payout for every year they were with the company.
The company believes costs related to the lockout may have totaled roughly $41 million over the past two quarters. Management expects expenses, due to hiring of temporary workers and training, may total $30 million alone for this quarter.
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