A memorandum of understanding signed last week by the union led to court confirmation of the company’s plans to exit bankruptcy protection, and paves the way for the firm to resume “business as usual.”
United Auto Workers (UAW)—the union 462 of the 610 workers belong to in the Colt plant—conceded to a reduction in medical coverage after retirement, agreed to measures to increase productivity and will consider a four-day, 10-hour work week. The court looked favorably on the measures, and certainly didn’t overlook the statement that management was going to explore the possibility of securing a $10 million loan from Delaware.
The Hartford Courant has complete details, and to paraphrase a quote often attributed to Mark Twain, the news of the company’s death is greatly exaggerated. It’s far from out of the financial woods, although the firm has a long history of comebacks.
UAW and Colt issued a joint statement on Dec. 17 about the development and Union Shop Chair Mike Holmes said, “Together, we have succeeded in maintaining our contract and securing good jobs with a continued presence in West Hartford.” Colt CEO Dennis Veilleux said, “We are proud of our workforce and the dedication that they have given Colt during this difficult restructuring process.”