Bus manufacturer New Flyer has agreed to a new contract with unionized employees at its St. Cloud plant. The four-year agreement provides annual wage increases of 2.5% in the first two years, 2% in the third and 2.25% in the fourth year. The pact also freezes entry-level wages and increases the amount of time it takes new employees to max out on pay.
Employees will also assume a larger portion of health care costs.
New Flyer and the Communication Workers of America had previously agreed to work an additional two months under the terms of an existing contract while negotiations on the new deal were finalized.
Provisions of the new contract seek to reduce the amount ofand move to a more incentive-laden system.
The contract goes into effect as New Flyer gears up to build a new midsize bus in a joint venture with a British firm at the St. Cloud facility. The company has announced a $4.9 million expansion to the facility and will add 136 new employees at the plant over the next two years.