Navistar announces plans to terminate contract extension with UAW

| Tuesday, October 22, 2002

International Truck and Engine Corp., the operating company of Navistar International Corp., announced Oct. 20 it notified the United Auto Workers union that the extension of the labor contracts between the company and the UAW will be terminated at 12:01 a.m. Tuesday, Oct. 22.

The labor agreements were scheduled to expire on Oct. 1, but by mutual agreement had been extended indefinitely subject to termination with at least 24 hours notice by either the company or the union.

"We regret that despite three months of intensive negotiations, including a three-week extension and involvement at the highest levels of both organizations, we still have not been able to reach an agreement to help build short- and long-term strength for the business," said Dan Ustian, Navistar president and chief operating officer.

Negotiators for the company and the UAW have been meeting in Louisville, KY, since late July to work towards new agreements covering about 7,100 production, maintenance, clerical and technical workers at International Truck and Engine manufacturing plants in Indianapolis, Melrose Park, IL, and Springfield, OH; parts distribution centers in Atlanta, Baltimore and Dallas; and the truck technical center in Fort Wayne, IN.

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