Navistar to terminate labor pact
The U.S.? largest truck manufacturer, Navistar International Corporation, announced Sunday that it would terminate a three-week-old contract extension covering 7,100 United Auto Workers members at four plants at 12:01AM today, raising the possibility of a strike by the union. The extension has kept the workers on the job under the terms of their old contract---which expired three weeks ago---as their union worked towards a new agreement with a company that recently shifted production from a closed Canadian and an idled U.S. plant to Mexico. Although the company has insisted that it will not lock out the workers and does not want a strike, low demand for trucks in the current weak economy means that the company is well positioned to take a strike in an attempt to win productivity raising concessions.