UAW and Chrysler Sign Tentative Agreement

10/01/96

Reuters reported that Chrysler Corporation and the United Auto Workers announced last Sunday night that they had reached a tentative labor agreement that guarantees hourly jobs and offers Chrysler employees the same economic package the union set with Ford almost two weeks ago. At a press conference at Chrysler headquarters, UAW President Stephen Yokich announced, "We're done here at Chrysler."

Yokich and Chrysler Chairman Robert Eaton did not release details of the agreement, which must still be ratified by Chrysler's 66,000 UAW members. Yokich did say that the agreement with Chrysler was patterned on the UAW's recent agreement with Ford, which offers major pension improvements, a $2,000 lump sum payment in the first year and three percent base wage hikes in the second and third years. Chrysler's assembly line workers currently make an average of $19 an hour.

Chrysler Chairman Robert Eaton declined to comment on whether Chrysler accepted restrictions on outsourcing as part of its new agreement. He said, "(the negotiations) produced very, very good results -- results that are good for our employees, yet something we can definitely live with."

The UAW-Chrysler council will vote on whether to pass the contract to the union's rank and file Chrysler workers for ratification on Thursday. Yokich said he did not know when a ratification vote would be finalized.

The agreement with Chrysler leaves GM as the only member of Detroit's Big Three Automakers without a contract agreement with the UAW. The UAW will meet for negotiations with GM, next.

Paul Dever -- The Auto Channel