Tower Automotive requests court approval of settlement with union regarding Greenville facility

By Jennifer Lanning Drey

Eugene, Ore., July 14 - Tower Automotive Inc. requested court approval of a settlement it has reached with its union workers in connection with closing its Greenville, Mich. facility, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the settlement, Tower's collective bargaining agreement with its union workers will be extended through July 31, 2007, according to the motion.

However, Tower's obligations to provide pension contributions will end on June 1, 2006.

Also under the settlement, Tower may cease operations at the Greenville facility and permanently lay off employees, according to the motion.

Tower will provide eligible bargaining unit employees who are permanently laid off with pay and benefits including 20 hours of pay for every full year of service. In addition, Tower will pay the employee's group health insurance premiums for group health insurance coverage for the month of the permanent lay off and the following two months.

A hearing on the settlement has been scheduled for July 26.

The Novi, Mich.-based auto parts maker filed for bankruptcy on Feb. 1, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-10578.

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