UAW Members at DaimlerChrysler Ratify New Labor Pact

DETROIT, Sept. 26 -- UAW members at DaimlerChrysler have voted to ratify the proposed new four-year agreements for hourly and salaried workers.

The contracts cover more than 60,000 active UAW workers at DaimlerChrysler, as well as more than 57,000 retirees and an additional 17,500 surviving spouses of retired workers.

"These are solid contracts which meet the needs of our active and retired members," said UAW President Ron Gettelfinger.

"Our achievements this year were made possible by the hard work of our bargaining team, with strong support from our rank-and-file members," said UAW Vice President Nate Gooden, who directs the union's DaimlerChrysler Department. Gooden commended Larry Williams of Local 140 in Warren, Mich., chair of the UAW DaimlerChrysler National Negotiating Committee, for his leadership during negotiations.

"We're proud that these agreements maintain full employer-paid health care for autoworkers, with no cost-shifting on health insurance premiums," said Gettelfinger.

"But the overall state of health care in this country is a shame. The rising cost of health care is an issue in every contract we negotiate. The real solution is a universal, single-payer national health care system so that everyone has access to quality, affordable health care," he added.

The new contracts deliver substantial economic gains for UAW DaimlerChrysler workers. Hourly workers will receive a $3,000 up-front signing bonus; a performance bonus in the second year of the contract; a 2 percent raise in the third year of the contract, and a 3 percent raise in the fourth year.

Salaried workers will also receive a $3,000 up-front bonus and a performance bonus in the second year of the contract, as well as an immediate 0.8 percent salary increase; a 2 percent increase, or $20 per week, whichever is greater, in 2005; and a 3 percent increase, or $30.40, whichever is greater, in 2006.

The agreements preserve full employer-paid health care, with no premiums or increased deductibles for UAW DaimlerChrysler workers, while enhancing benefits for vision, dental and child and adult immunization services.

The co-pay for generic prescription drugs will remain at $5 under the new agreements, while the co-pay for brand name drugs will rise to $10. In addition, if a worker requests a brand name when a generic is available, he or she will pay the difference between the brand and the generic.

Pensions were improved in the new agreements, with an $800 lump sum in each of the four years of the contract for current retirees. Surviving spouses will receive 65% of that amount, or $520. Current retirees will also receive a $1,000 voucher toward the purchase of a DaimlerChrysler vehicle in the first and third years of the agreement.

Future retirees will receive an increase in their basic retirement benefit, with total increases of $4.20 per year of credited service over the four-year term of the agreement. The 30-and-out benefit for workers who retire with 30 years of service will increase by $290 over four years, to $3,020 per month for retirements which take place after Oct. 1, 2006.

The new contracts also feature enhanced health and safety improvements for UAW DaimlerChrysler workers, including early involvement in the design of tools and equipment and new procedures for ensuring air quality standards in DaimlerChrysler facilities.

The new agreements protect the right of workers at facilities identified by the company for sale or closure during the course of this year's negotiations. All workers at these facilities will retain their right to remain DaimlerChrysler employees, and will be eligible for enhanced retirement and relocation benefits.

Of nine facilities identified by DaimlerChrysler, four will continue to be covered by the provisions of the UAW-DaimlerChrysler national agreement, with a commitment to initiate joint efforts to improve quality and productivity. These facilities are Detroit Axle, Mt. Elliott Tool and Die and DaimlerChrysler Transportation in Detroit, and Toledo Machining in Toledo, Ohio.

Of the remaining five facilities, two will be sold: the Huntsville, Ala., plant will be sold to Siemens, and the New Castle, Ind., Machine and Forge plant will be sold to Metaldyne. New Process Gear, in Syracuse, N.Y., will become a Magna-Styer joint venture.

The McGraw Glass plant in Detroit and the Indianapolis Foundry will be closed by DaimlerChrysler during the term of the agreement. Workers at these facilities will have full job and income security protections, including the right to transfer to other UAW-represented DaimlerChrysler facilities.