The United Auto Workers and Chrysler Corporation announced October 10 that the sides have reached a tentative agreement on a new labor contract covering 45,000 represented employees. The agreement is subject to UAW member ratification.
The tentative agreement includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts and satisfactory review of accounting treatment with the Securities Exchange Commission.
The strike against Chrysler began at 11 a.m. on October 10, following the expiration of an extension to the current labor agreement. After the agreement was announced, the strike was recessed immediately.
“The national agreement is consistent with the economic pattern, and balances the needs of our employees and company by providing a framework to improve our long-term manufacturing competitiveness,” said Chrysler vice chairman and president Tom LaSorda. “At this time, we cannot discuss specifics of the agreement pending a ratification vote – an internal UAW process.”
“This agreement was made possible because UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company,” said UAW president Ron Gettelfinger.
“Once again, teamwork in the leadership and solidarity in the ranks has produced an agreement that protects jobs for our communities and also protects wages, pensions, and health care for our active and retired members,” said UAW vice president General Holiefield, who directs the UAW’s Chrysler Department.
