Tower Automotive calls plan development top priority, asks union to share sacrifices

By Caroline Salls

Pittsburgh, Jan. 30 - Tower Automotive, Inc. replied to recent union comments on sacrifices they have been asked to make in the company's Chapter 11 case, saying its top priority is to develop a plan of reorganization that permits its U.S. operations to exit from bankruptcy as a profitable, competitive automotive supplier, according to a company news release.

According to the release, this strategy will allow the company to continue supporting its customers and offering colleagues valued employment.

"The only real job security is to be competitive," Tower said in the release. "This can only come with sacrifice from all key parties."

Salaried and non-union colleagues have already made concessions totaling $32 million annually, according to the release, and the company said it needs union colleagues to participate in a fair and equitable manner or many jobs will be jeopardized.

Tower Automotive said it remained committed to negotiating with its unions outside of the court process.

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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