TOLEDO Jeep, supplier negotiate labor deal

The supplier-run factory concept is new to the auto industry in North America.
TOLEDO (AP) -- Companies that supply Jeep's assembly plant will operate a new factory and take over some work that the automaker currently handles if a tentative eight-year labor agreement is approved, a union official said.
The supplier-run factory would be built next to Jeep's 3-year-old assembly plant, and union jobs would be transferred to the new plant that would have vehicle body and paint shops, said Nick Vuich, Jeep unit chairman for United Auto Workers Local 12.
Overall, the agreement guarantees that DaimlerChrysler AG would invest up to $2.1 billion into the Toledo plant. The investments would be for a redesigned Jeep Wrangler, Liberty and two other vehicles not yet identified, along with some factory improvements, Vuich said.
No additional jobs are expected initially under the deal reached Tuesday. With 4,700 workers, the plant is the Toledo area's largest industrial employer. Workers will vote on the contract Monday.
"We're really fortunate to be looking at expansion when other plants are downsizing or under the threat of closure," Vuich said. "This ... secures Jeep and DaimlerChrysler in Toledo for many, many years to come."
Chrysler spokesman Dan Bodene said he would not discuss an agreement until workers ratify it.
Workers' positions
The concept of the supplier-run factory is new to the auto industry in North America. Some workers will question whether suppliers should be doing their work, Vuich said.
It's not known how many workers will be needed at the supplier-operated plant and whether they will be paid less than current union workers.
Jeep workers will have first opportunity for the supplier jobs, Vuich said.
The supplier-operated shop also would lead to the closure of Jeep's older assembly plant in Toledo, which is the nation's longest-running auto plant.