NORMAL - Mitsubishi Motors North America and United Auto Workers Local 2488 will resume negotiations Wednesday, plant spokesman Dan Irvin said.

The workers' contract initially expired Aug. 28 but was extended until Sept. 5. The following day, the UAW local's bargaining committee rejected a company proposal, but told its 1,261 members to continue to report to work.

All employees continue to arrive for work and production business is continuing as usual, Irvin said.

An attempt to reach UAW Local President Ralph Timan for comment was unsuccessful.

Neither Mitsubishi nor the UAW will comment on the specific issues as negotiations continue, but talks between the two sides reportedly have focused on pay and benefit cuts, as well as the creation of a two-tiered wage system.

The base salary for a union production worker is currently $28.57 an hour, or $59,425 annually. Base pay for a union maintenance worker is $33.11 an hour, or $68,868 annually.

Union workers approved an intent-to-strike vote by a 97 percent margin in August. The vote is a procedural step during negotiations, but now permits them to walk out if no contract agreement is reached.

To date, the company's only strike was a one-day walkout in 2001. Back then, Mitsubishi's cars were selling well despite a growing auto industry slump.

This time around, the bargaining comes at a turbulent time for both Mitsubishi and the auto industry. The company's U.S. sales through August have dropped 22.4 percent, from 93,724 vehicles in 2007 to 72,727 in 2008. The Normal plant is scheduled to build only 56,000 vehicles this year, according to the union's Web site.