Centerbridge Partners to play key role in restructured firm
The United Auto Workers announced on July 6 that it has reached a national framework agreement with Dana Corporation to settle outstanding labor issues and assist the firm in emerging from bankruptcy proceedings.
As part of the agreement, Centerbridge Partners, a New York-based investment firm, has agreed to invest $500 million in Dana and will sponsor the company's reorganization plan.
"This settlement would not have been possible without the involvement of Centerbridge Partners," said UAW President Ron Gettelfinger. "They're going to play a key role in the future of Dana, and we look forward to working with them to help this company succeed in the marketplace."
"These were long and difficult negotiations when many times our efforts were hindered by very anti-worker bankruptcy laws and procedures," said UAW Vice President Bob King, who directs the union's Competitive Shops/Independents, Parts and Supplier Department. "Because of great solidarity and teamwork of our locals, our members, and our international unions we feel we did the best job possible for our active and retired members and achieved a number of important objectives for the future benefit of our members."
"We insisted that the company limit its debt, have minimum liquidity and obtain new cash investment in order to have a chance at a positive future, and Dana agreed to our conditions," said King. "We're not interested in a repeat of past mistakes, when the company went from one financial crisis to another. Our members are committed to working as hard as possible to build quality products for Dana customers - and we expect and deserve an equal commitment from management."
The United Steelworkers (USW) also participated in negotiating the framework agreement with Dana, which includes the modification and extension of collective bargaining agreements at certain locations, and new collective bargaining agreements at other locations. The agreement is subject to ratification by UAW and USW members and approval of the U.S. Bankruptcy Court.
-United Auto Workers
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