Tower Automotive provides restructuring update

Tower Automotive today announced two developments in its ongoing restructuring efforts: a tentative agreement with its Milwaukee unions and plans to move forward with decision bargaining regarding the closure of its Greenville, Mich., manufacturing facility.

The company has reached an agreement in principle with the seven unions that represent workers at its Milwaukee manufacturing facility, one of its largest collective bargaining units and its largest group of retirees. The tentative agreement modifies benefits and resolves a wide range of outstanding issues related to the planned cessation of operations at the facility in March.

Among other issues, the agreement modifies retiree health care benefits for current and retired Milwaukee employees. To mitigate the effects of terminating retiree health coverage, the company will continue to pay health care coverage for employees through the end of June 2006 and will assist with the establishment of a Voluntary Employee Beneficiary Association trust that will administer the health care benefits of retirees and their dependents. Under this agreement, additional company contributions are possible if the company meets certain financial targets.

The company also announced that its board of directors has authorized it to engage in any necessary bargaining with all of the relevant unions regarding the closure of the manufacturing facility in Greenville, Michigan.

The facility, which produces metal stampings and assemblies for the North American automotive industry, employs approximately 200 hourly employees and 30 salaried employees.