NORMAL - Mitsubishi Motors North America workers in Normal agreed Saturday to a four-year contract that trades pay and benefit cuts for a promise of job security through 2012. | Video

A little more than half of those voting, OK'd the agreement, said Ralph Timan, president of the United Auto Workers Local 2488. The approval reflects the financial crisis affecting both the nation as a whole, and the auto industry, he said.

"It really comes down to the economic conditions facing us as a nation. …and the economic conditions facing the auto industry in the past year," said Timan.

A $700 billion bailout bill passed in Congress last week to deal with that financial crisis, and the national discussion of the crisis, likely factored into the union membership's decision on the MMNA matter, he said.

Company officials say the union's ratification of the agreement dramatically improves the ability of the Normal, Illinois assembly plant to be a key player in the global success of Mitsubishi Motors.

The key bargaining element was a promise from MMNA that until 2012, the Normal plant would remain a viable, operating facility, and that no union workers would face involuntary lay-offs during that period, said Timan.

In a statement released by the company shortly after the vote, MMNA Manufacturing President & CEO, Shiro Futaki praised the agreement as a symbol of his employees' teamwork and determination to succeed.

"The leadership of both the UAW and MMNA recognize the tough issues facing the U.S. automotive industry and we have worked together toward solving them," he said. "This agreement continues a long tradition of partnership and cooperation between MMNA and the UAW."

MMNA officials announced the contract included a $4.75 per hour cut to production workers pay, to a new base rate of $24. Any future recall of laid-off workers would be at $16.80 (70% of base rate) and progress to $24. New production workers would be hired at a $14 per hour base rate, and progress to a $20 rate.

Maintenance workers pay will be cut $4.79 per hour, to a new base rate of $28.50. New maintenance workers would be hired in at $22 per hour base rate, and progress a $25 base rate.

The contract also allows an opportunity for up to 200 production workers and 30 maintenance workers to participate in a voluntary separation program or take early retirement.

Listed in the UAW's summary of the tentative agreement, an "equality of sacrifice" clause notes the subject of management and salaried employees taking cuts was part of the tentative agreement. However, Timan declined to comment on that.

Company spokesman Dan Irvin said "equality of sacrifice" was not part of the approved contract, and details about any possible pay or benefit cuts for non-union employees hadn't been determined.

"All of the focus of this contract has been on the collective bargaining staff," he said. "I'm not going to speculate on other areas."

A bargaining team with members representing the union and the company reached the tentative agreement Sept. 26, after 2½ months of negotiations - set against the backdrop of turmoil throughout the automotive industry and several years of recent struggles at Mitsubishi's only North American manufacturing facility. The workers' contract expired Sept. 6.

The new contract passed, with 54 percent of voters approving, said Timan. He declined to say how many people voted, but called the two-day voting period a "tremendous turnout."

MMNA officials say 1,264 union members currently work at the Normal plant. However, laid-off workers still could vote, if their union dues were up to date. In 2004 the carmaker cut about 1,200 workers' jobs.

Local 2488 opened voting from 5 to 7 p.m. Friday at Illinois State University's Braden Auditorium; and was greeted with the concourse area lined with members waiting a turn to cast a ballot. Voting began again at 8 p.m. at the union hall on Illinois 9, continuing throughout the night.

Voting closed at 3 p.m. Saturday, with the outcome announced at 5 p.m.

The agreement takes effect Monday, and continues through Aug. 30, 2012.

Karen Hansen contributed to this report.

On the web

www.mitsubishicars.com

www.uaw2488.org

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New Contract Details

Economic

- Reduces current Production Associate base rate by $1.67 to new base rate of $24.00 Eliminate $3.08 COLA. Total $4.75 reduction.

- Reduces Current Maintenance Associate present base rate by $1.71 to new base rate of $28.50 Eliminate $3.08 COLA. Total $4.79 reduction.

Medical Benefits

- Implements deductible and increases co-pay of covered medical expenses. Implements out-of-pocket maximum

Provision For Laid Off Workers

- Any future recall would be at $16.80 (70% of base rate) and progress to $24.00.

New Hire Compensation

- New production associates are hired in at $14.00 and progress to $20.00

- New maintenance associates are hired in at $22.00 and progress to $25.00.

SOURCE: Mitsubishi Motors