Lear Corp. urges UAW to lower wages in exchange for jobs in Detroit


Detroit, MI, United States – Lear Corp., one of the world’s largest auto suppliers, is urging the United Auto Workers to agree to cut wages in exchange for relocating jobs back to Detroit from Mexico.

Lear Corp. chief executive Matt Simoncini said that he was also in negotiations with Detroit officials about tax cuts, including those of property taxes.

If an agreement is reached, around 1,000 jobs could return initially to the city’s parts facilities owned by several suppliers, not just Lear, according to Mr. Simoncini in an interview.

Mr. Simoncini said he has met with Detroit Mayor Mike Duggan , as well as UAW President Dennis Williams and other top union negotiators. He, however, said that formal wage negotiations haven’t started yet.

City officials and the UAW confirmed the meetings but did not offer specific details. Mr. Duggan’s administration has been looking into a number of ways to revive its economy, particularly after the city exited bankruptcy in 2015.

The Southfield, Mich . company saw its headcount rise in the U.S. and Canada to 10,200 hourly workers, compared to 6,900 in 2010. Meanwhile, the seats and electrical components manufacturer has total hourly workforce of 46,600 in Mexico, up by 70 percent since 2010.

Nathan Andrada