workers voted last week to accept pay and benefits cuts to avoid more job
cuts and plant closures. The news comes as the company prepares to announce
restructuring plans later this month to cut an estimated $1.2 billion expected
loss this year.
The company's 1,200 union
employees at its Portland, OR, headquarters agreed to wage and benefit concessions
to keep the truck- and parts-manufacturing plants open, according to The Oregonian.
Union officials said they were told if they agreed to the concessions, they
would miss this round of layoffs.
to suffer from a yearlong depression in truck orders and is trying to re-negotiate
with fleets its guaranteed buyback of used trucks, according to the newspaper.
The company, which is a subsidiary of DaimlerChrysler AG, has already eliminated
1,200 jobs this year because of declining sales of heavy- and medium-duty
The company announced
earlier this month it is also cutting costs with a 5-percent reduction in
salaries and wages, increasing prescription drug co-pays and the elimination
of 2001 year-end bonuses' for 13,100 nonunion employees.