ARC Automotive Inc. and Workers United, SEIU, Sign Three-Year Contract

Mar 04, 2011, 15:09 ET from ARC Automotive Inc. and Workers United, SEIU

KNOXVILLE, Tenn., March 4, 2011 /PRNewswire/ -- ARC Automotive Inc. and the Workers United and SEIU reached an agreement on March 3, 2011, on a three-year collective bargaining agreement at the Knoxville automotive parts plant, which produces igniters used in airbags and employs over 100 workers.

The settlement was ratified by the Union membership and ensures the agreement through 2013. 

The contract includes reasonable increases in employee contributions for medical coverage and protection of plan benefits over the life of the agreement as well as a replacement for the current retirement plan while protecting the benefits already earned by employees under the former plan.

The contract allows the company flexibility in the use of temporary employees to meet production demand while protecting the seniority rights of the existing workforce.

Wages were protected with possible bonuses from gain sharing and a potential increase if the plant meets agreed upon goals by 2013.

"We are pleased that we could fashion a settlement that helps meet the competitive challenges that face the auto parts industry and assure the industry will continue to have a reliable and world class supplier for their needs," said the Union's Regional Director, Harris Raynor.

Ali El-Haj, President, ARC Automotive Inc., said, "ARC is pleased to have entered into a three-year agreement with terms that are tenable for the company's continuing operations and for our employees."

About ARC Automotive Inc., a leader in inflators and propellants for the automotive industry, is a global supplier to the manufacturers of vehicle airbag safety systems. Founded more than 50 years ago as Atlantic Research Corporation, ARC Automotive has evolved over the years to utilize the same proven technologies found in propellant military systems. ARC Automotive has manufacturing operations in the United States, Mexico and China, operating with TS 16949, A2LA-ISO / IEC 1725 and ISO 14001 qualifications. ARC Automotive is a division of Sequa Corporation. More information is at


Cathy Gedvilas


Harris L. Raynor

Southern Regional Director, Workers United/SEIU


SOURCE ARC Automotive Inc. and Workers United, SEIU