Grupo Dina Has Reached Agreement With Union to Reduce Labor Force At Dina Camiones Plant

Apr 23, 2001, 01:00 ET from Consorcio G. Grupo Dina, S.A. de C.V.

    MEXICO CITY, April 23 /PRNewswire Interactive News Release/ -- Consorcio
 G. Grupo Dina, S.A. de C.V. ("Dina"), a Latin American truck producer,
 announced on April 17th that it has reached an agreement with the Union of
 Independent National Automobile Industry Workers that will conclude the labor
 conflict associated with the earlier threat of a strike at its truck division.
     After more than two months of negotiations a deal was struck, and the
 threat of a strike has been lifted. The basic terms of the settlement include
 an ongoing shutdown of the plant through October 31, 2001, a 40% reduction in
 the 506-person work force, and payment of 48% of regular pay with certain
 benefits to the remaining workers. These workers will also receive an 8% wage
 increase.
     Mr. Gamaliel Garcia, Dina's CEO, stated that, "This is a temporary measure
 while we continue to search for alternative ways to reactivate production. We
 regret having to lay off any workers, but it is unavoidable in order to
 stabilize our financial condition and to survive our present difficulties."
     The company has repeatedly stated that the unilateral termination of its
 contract with Western Star to supply them with 9,000 units over the next three
 years, together with the contraction of both the total market in North and
 South America and Dina's own share, has necessitated the cutbacks in
 production and staffing.
     Mr. Mauricio G. Mendoza, Dina's legal counsel, reported that the company's
 $110 million legal claim against Western Star that was filed on October 27th,
 2000 is pending and that arbitrators have already been selected.
     Finally, Mr. Gamaliel Garcia noted that the agreement with the Union is
 the result of the willingness of all parties to continue with a relationship
 that provides the workers with a fair contract.
 
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SOURCE Consorcio G. Grupo Dina, S.A. de C.V.
    MEXICO CITY, April 23 /PRNewswire Interactive News Release/ -- Consorcio
 G. Grupo Dina, S.A. de C.V. ("Dina"), a Latin American truck producer,
 announced on April 17th that it has reached an agreement with the Union of
 Independent National Automobile Industry Workers that will conclude the labor
 conflict associated with the earlier threat of a strike at its truck division.
     After more than two months of negotiations a deal was struck, and the
 threat of a strike has been lifted. The basic terms of the settlement include
 an ongoing shutdown of the plant through October 31, 2001, a 40% reduction in
 the 506-person work force, and payment of 48% of regular pay with certain
 benefits to the remaining workers. These workers will also receive an 8% wage
 increase.
     Mr. Gamaliel Garcia, Dina's CEO, stated that, "This is a temporary measure
 while we continue to search for alternative ways to reactivate production. We
 regret having to lay off any workers, but it is unavoidable in order to
 stabilize our financial condition and to survive our present difficulties."
     The company has repeatedly stated that the unilateral termination of its
 contract with Western Star to supply them with 9,000 units over the next three
 years, together with the contraction of both the total market in North and
 South America and Dina's own share, has necessitated the cutbacks in
 production and staffing.
     Mr. Mauricio G. Mendoza, Dina's legal counsel, reported that the company's
 $110 million legal claim against Western Star that was filed on October 27th,
 2000 is pending and that arbitrators have already been selected.
     Finally, Mr. Gamaliel Garcia noted that the agreement with the Union is
 the result of the willingness of all parties to continue with a relationship
 that provides the workers with a fair contract.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X26363646
 
 SOURCE  Consorcio G. Grupo Dina, S.A. de C.V.