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Latest News - October 2011

October 12, 2011
New UAW, Chrysler labor contract would spur investment, new jobs
Source: The Commercial Appeal

DETROIT -- The United Auto Workers union said Wednesday that it has reached a tentative agreement with Chrysler Group LLC, giving the union a deal with the third and final automaker in this year's national contract negotiations.

The UAW said the four-year agreement would add 2,100 new jobs and $4.5 billion in new investments at Chrysler's U.S. plants.

"Less than three years ago, Chrysler was teetering on the edge of bankruptcy as our nation was thrown into the worst economic crisis since the Great Depression," UAW President Bob King said in a statement.

"This tentative agreement builds on the momentum of job creation and our efforts to rebuild America," King said.

Chrysler, in a statement, confirmed that it has reached a tentative deal.

Details of the agreement include:

$3,500 signing bonuses, with half to be paid up front and half to be paid when Chrysler reaches certain financial targets.

Inflation-protection bonuses of $500 each year of the four-year contract for a total of $2,000. This is less than the $3,000 GM workers received for a similar bonus in their contract and the $6,000 Ford workers could gain from their contract, which has not yet been ratified.

$500 annual quality bonuses.

Entry-level, second-tier workers, now making about $14.65 an hour, will receive raises to $19.28 an hour by the end of the four-year contract. First-tier workers, as at GM and Ford, receive no raise.

A revised profit-sharing formula similar to an agreement ratified by GM workers.

All new jobs will be entry-level jobs.

No cap on entry-level hires until 2015.

Both King and UAW Vice President General Holiefield emphasized the need for new jobs from these investments.

"We did not enter any set of negotiations to break any one of these companies," Holiefield said. "We recognize that the corporation is in its infant stages of a comeback."

Chrysler has hired about 2,800 lower-cost, entry-level workers, or about 12 percent of its current 26,000-employee workforce.

Chrysler and Fiat CEO Sergio Marchionne achieved his objective of eliminating a 25 percent cap on the percentage of Chrysler's workers who could be paid the lower second-tier wage



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