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UAW-Chrysler proposed contract: New jobs, a new day: rebuilding America

DETROIT -- The UAW Chrysler Council voted today to recommend the tentative agreement for ratification by UAW members at Chrysler Group LLC.  The tentative agreement is the third agreement with the domestic automakers in the 2011 auto talks. 

"It's a new day at Chrysler," said UAW President Bob King.  "In less than 3 years, Chrysler, through the dedication and hard work of its UAW-represented workers, has emerged from bankruptcy, repaid its federal loans six years early and is now helping drive the U.S. economy.  Through this collective bargaining agreement, we are adding jobs and helping to rebuild America.  This proposed contract builds on the momentum created from the UAW General Motors and Ford Motor Co. agreements and will bring 2,100 new jobs to America," King added.

In total, the three agreements will add more than 20,000 new direct jobs to the economy, with 6,400 jobs at GM, 12,000 at Ford, including bringing off-shored manufacturing back to the U.S. from Europe, Mexico and China. 

The tentative agreement includes $4.5 billion to produce new and upgraded vehicles and components by 2015.  

Jobs, investment and product guarantees in the tentative agreement include: 

 

  • Belvidere, Ill., New compact vehicle.
  • Sterling Heights, Mich., New compact vehicle.
  • Kokomo, Ind, New Front Wheel Drive 9 Speed - 946 TE transmission and new Rear Wheel Drive 8 Speed - 845RE transmission.
  • Toledo, Ohio, Next generation steering columns, FRW and RWD Torque Converters.
  • Trenton, Mich., Reutilize portion of the Trenton North Engine Plant to produce an incremental volume (150,000 units) of 3.8L V-6.

A complete list of plant investment can be found on the UAW's website, uaw.org. 

"UAW members sacrificed when the company was struggling, and this agreement ensures that our members will now share in Chrysler's prosperity," said UAW Vice President General Holiefield.  "Together with the loans from the U.S. government - and make no mistake, the loans, supported by President Obama, provided the foundation for the company's turnaround - make it possible now to give workers what they deserve and to further repay American taxpayers by investment in plants and job creation in communities," added Holiefield. 

The tentative agreement returns to workers the Tuition Assistance Program they gave up during the economic downturn.  Economic improvements in the tentative agreement include a $3,500 ratification bonus and $1,000 in annual bonuses for performance and quality, in addition to a new, more transparent profit sharing program and "Upside Bonus" that will begin paying at the point Chrysler achieves financial stability.

"This additional money in the paychecks of UAW members is well-earned, but it doesn't just benefit them; they will spend that money in their communities, providing a well-needed boost to local economies across the country," said Holiefield.

Also critical to the union in these talks, particularly at Chrysler with the highest rate of New Hire workers, was raising the standard of living for those workers.  Through this proposed agreement, New Hire wages will increase significantly to $19.28 over the term of the agreement. New Hire workers will be eligible for tuition assistance programs, unlimited $25 co-pay for doctor's office visits, life insurance and other benefits.  

"For all those people who attack unions and want to eliminate collective bargaining, these contracts prove that collective bargaining works.  It works for the companies, it works for the employees and it works for America.  The UAW agreements with Ford, GM and now Chrysler provide decent wages, benefits and rights on the job for workers while ensuring quality products and healthy profits for the company," said King.  

"With the loss of jobs and the declining middle class, it's important to remember that for decades the UAW played a central role in building America's middle class, which was possible because historically all American auto workers were members of the UAW.  But as long as unionized workers are being forced to compete with non-union workers who in most cases get lower pay and benefits, many working in temporary jobs, there will continue to be downward pressure on all autoworkers. 

"The pathway to rebuilding America's middle class and creating long term job security for all American autoworkers must include the right to organize for workers at the foreign-owned automakers operating without unions in the U.S.  The UAW is deeply committed to that goal. It is imperative that workers have the rights to organize and to collectively bargain, since this is key to rebuilding the middle class," King added. 

The UAW reached a tentative agreement with GM on Sept. 16 and with Ford on Oct. 4. The GM agreement was ratified by UAW members with a 2:1 ratio on Sept. 28.  The Ford agreement is pending ratification by UAW members. Voting at Ford will be completed by Oct. 18.

The UAW represents 26,000 employees at Chrysler, including 3,000 salaried employees at 48 Chrysler facilities in the United States, making vehicles and components with the Chrysler, Jeep, Dodge, Mopar and Ram Truck brands.

Details of the proposed agreement can be seen on the the UAW's website.