Chrysler reaches landmark deal with striking US workers
Friday, 12 October 2007
DETROIT, Michigan, Oct 11 (AFP): A strike at Chrysler LLC's US plants was called off after less than seven hours when the automaker reached a deal with its main union on a landmark contract aimed at helping the automaker better compete with its Asian rivals.
While details of the contract were being withheld pending union ratification, Chrysler said the tentative deal would help it narrow the labor-cost gap with the non-unionised US plants of Toyota, Honda and other foreign competitors.
"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," Tom LaSorda, vice chairman and chief negotiator at Chrysler LLC, said in a statement.
Chrysler said the deal includes a memorandum of understanding to establish an independent retiree health care trust.
No details were released on the degree to which Chrysler would fund the trust, which is expected to be administered by the United Auto Workers union.
The union said workers will be told to report to work on their next available shift.
"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," UAW President Ron Gettelfinger said in a statement.
Meanwhile, unionised workers at General Motors approved a new contract aimed at helping the struggling US auto giant better compete with its Asian rivals, the United Auto Workers said yesterday.
The UAW said 66 per cent of its production workers and 64 per cent of its skilled trade workers voted to ratify the new contract with General Motors based on a September 26 collective bargaining agreement.
"We entered these negotiations with a clear mandate from our membership," UAW president Ron Gettelfinger said in a statement.
While details of the contract were being withheld pending union ratification, Chrysler said the tentative deal would help it narrow the labor-cost gap with the non-unionised US plants of Toyota, Honda and other foreign competitors.
"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," Tom LaSorda, vice chairman and chief negotiator at Chrysler LLC, said in a statement.
Chrysler said the deal includes a memorandum of understanding to establish an independent retiree health care trust.
No details were released on the degree to which Chrysler would fund the trust, which is expected to be administered by the United Auto Workers union.
The union said workers will be told to report to work on their next available shift.
"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," UAW President Ron Gettelfinger said in a statement.
Meanwhile, unionised workers at General Motors approved a new contract aimed at helping the struggling US auto giant better compete with its Asian rivals, the United Auto Workers said yesterday.
The UAW said 66 per cent of its production workers and 64 per cent of its skilled trade workers voted to ratify the new contract with General Motors based on a September 26 collective bargaining agreement.
"We entered these negotiations with a clear mandate from our membership," UAW president Ron Gettelfinger said in a statement.