Tower Automotive reaches transition agreement for closure of Granite City facility

By Caroline Salls

Pittsburgh, Jan. 19 - Tower Automotive, Inc. requested court approval of a transition agreement in connection with the closing of its Granite City, Ill., facility, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the agreement:

• Bargaining unit employees will maintain their seniority under the collective bargaining agreement and will be entitled to severance pay if laid off because of the plant closing;

• Employees will be entitled to severance equal to 20 hours of pay for each year of service, capped at 26 years of service;

• Employees with less than one year of service will be entitled to one week's pay;

• The company will encourage employees to take all earned vacation prior to termination but will pay for any remaining vacation in the payroll period immediately following termination;

• Health and dental contributions will be provided for the same period as outlined in the collective bargaining agreement, and the company will continue to pay all sickness and accident and short-term disability benefits;

• The company will offer bargaining unit employees a resume workshop; and

• If Tower reopens the Granite facility within three years of the transition agreement, it will offer employment exclusively by seniority to bargaining unit employees who apply within 45 days of a public notice of reopening.

A hearing is scheduled for Jan. 30.

Tower, a Novi, Mich.-based auto parts maker, filed for bankruptcy on Feb. 1, 2005. Its Chapter 11 case number is 05-10578.

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