Lear Reaches UAW Agreement
"The proposed contract terms are competitive and will allow Lear to continue supplying high-quality seating systems to GM from both locations for years to come,” Lou Salvatore, Lear Seating Operations said in a statement via Autonews.
“We are recommending a yes vote for ratification -- and as always, our members will have the final say on the agreement,” Jim Wells, director of UAW Region 5 added.
Lear, automotive seating systems, electrical distribution systems and electronic products supplier filed for bankruptcy on July 7. Together with its U.S. and Canadian subsidiaries, Lear filed "voluntary petitions in the United States Bankruptcy Court seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code."
The same day, the supplier said it will seek court approval to continue to provide pay to its employees.
Lear, who will stay under Chapter 11 protection for some 60 days, already received commitments from a group of secured lenders for $500 million in debtor-in-possesion financing.
Lear has become the biggest automotive supplier to file for bankruptcy this year. It registered annual net sales of $13.6 billion in 2008 and employs 80,000 people at 210 locations in 36 countries.