Workers replaced at International Truck plant

| 6/24/2002

International Truck and Engine Corp. plans to use temporary employees to resume production at a Canadian factory where union workers went on strike June 1.

According to Bloomberg News, International said output at the Chatham, Ontario, heavy-duty truck plant will resume as soon as possible despite threats of violence against 40 temporary workers yesterday.

The 646 workers at Chatham, represented by the Canadian Auto Workers, walked out after their contract expired and the two sides couldn't agree on $14 million in wage concessions and other cost cuts.

Reportedly, investors and analysts have said the strike probably won't hurt the company because it has increased output at a lower-cost Mexican plant.

"We need production out of Chatham," J. Steven Keate, president of the International Truck Group, said in an interview. "The actions are being taken solely to meet the needs of our customers."