UAW Reaches Pact With Chrysler; GM, Ford Talks Continue

Detroit September 15, 2003; United Auto Workers President Ron Gettelfinger said early Monday the union had reached an agreement on a new contract with DaimlerChrysler AG's Chrysler Group but said the union was still at the bargaining table with Ford Motor Co. and General Motors Corp. , Monday's Wall Street Journal reported.

Late Sunday, individuals close to the talks had said that the UAW and General Motors Corp. and Ford had also reached tentative agreements, but at a press conference begun shortly after 12:01 a.m. EDT Monday Mr. Gettelfinger said only the Chrysler deal was done, and that the other companies were still in talks.

The UAW and the companies had hoped for unprecedented simultaneous agreements. Last-minute snags could delay settlements at Ford and GM. Details of the pact were sketchy Sunday night. People familiar with the outlines of the agreement said it contains a mix of lump-sum payments and annual wage-rate increases for workers, in contrast to the rich 3% annual improvements negotiated in 1999 for the previous contract. A UAW-represented auto assembler earns an average $25.63 an hour on straight time. The auto makers will get some additional flexibility to shrink their work forces over time and close or sell plants. The UAW has largely won its fight to stave off major cuts to workers health care benefits.

The auto makers and the UAW hope to gain an image boost from their success in negotiating new master agreements without acrimony despite tough times for the domestic U.S. industry. The U.S. operations of GM, Ford and Chrysler and the UAW were equally under pressure to demonstrate that they could come to terms and focus on their common rivals, the Asian and European auto makers whose nonunion North American factories are taking market share away from UAW-represented Big Three plants.