Chrysler and UAW reach deal

Source: Manufacturing Digital

Date :10/11/2007 3:50:11 AM

Chrysler LLC and the United Auto Workers union reached a labor agreement on Wednesday; six hours after the strike against the automaker began.

The UAW said in a statement it was calling off the strike by some 37,000 workers at 20 of 25 Chrysler plants in the United States, with immediate effect.

The contract settlement includes establishing a trust fund known as a Voluntary Employees Beneficiary Association, or VEBA that would take over responsibility for, pensions and health care for UAW-represented Chrysler workers and retirees.

Chrysler said in a statement that it expected the deal - sunject to review by the U.S.Securities and Exchange Commission- to improve its manufacturing competitiveness.

Ratification

The strike was by UAW in the past several weeks, following another against General Motors Corp.

That strike lasted two days before an agreement was reached.

UAW also announced Wednesday that members ratified the GM deal.

Details of the deal, which now faces ratification by Chrysler's almost 49,000 UAW-represented workers, were not immediately available.

The focus now shifts to Ford, which faces still-pending contract talks with the UAW.

October 11 2007

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