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The Nation : Union Concedes to AMC

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Wage and benefit concessions were overwhelmingly approved by United Auto Workers members voting on a new three-year contract at an American Motors Corp. parts distribution center and a metal stamping plant in Milwaukee. The agreement reportedly involves reducing the average assembly worker’s pay by 61 cents an hour, to $12.95, reducing the time spent on lunch breaks and eliminating nine paid vacation days. AMC, 46% owned by the French auto maker Renault, had said it would close the Wisconsin plants if workers did not approve the concessions. Fewer sales as U.S. consumers switch to larger cars have been blamed for AMC’s $29-million loss in the first quarter.

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