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Press Release

UAW Announces Ratification of New UAW-Chrysler Contract

10/16/96

Yokich, Laskowski Announce Ratification of New UAW-Chrysler
Agreements

DETROIT, Oct. 14 -- UAW President Stephen P. Yokich and
Vice-President Jack Laskowski, director of the UAW-Chrysler
Department, announced that UAW members at Chrysler voted by
an overall margin of 73% to ratify new three-year agreements, covering
hourly and salaried workers.

"Our members had faith in their union negotiating team, and those
negotiators repaid that faith by fashioning a set of contracts that
meets the outstanding agreement set at Ford and also addresses other
specific areas of concern to Chrysler workers," said Yokich and
Laskowski.

"We could not have done it without the solidarity of the entire UAW
membership, the spirited support of the Chrysler membership, the
dedication and skill of the National Chrysler Bargaining Committee,
and the hard work of the UAW staff," the UAW leaders concluded.

Highlights of the new three-year agreement include: expanded job
security protections, which provide a guaranteed minimum employment
floor of 95 percent of current covered jobs, incentives for insourcing
work and creating new jobs, and disincentives on outsourcing. Wages
and incomes are increased substantially through an up-front, lump-sum
payment of $2,000, followed by three percent general base wage
increases in the second year and third year of the agreement,
cost-of-living allowance protection, and Christmas bonuses of up to
$600 each.

Substantial gains were made in basic pension plan benefits and
30-and-Out early retirement benefits for workers who retire during the
new agreement. The union negotiated lump-sum payments for retired
Chrysler workers, with an inflation protection feature, and will be
payable in December 1997 and December 1998.

For the first time, Chrysler will make tuition assistance payments of
up to $1,000 per year for dependent children -- of active or retired
workers -- enrolled in college and other approved post-secondary
education and training. Tuition assistance of up to $1,000 per year
was won for retirees who enroll in courses on-site at locations from
which they retire.

Among other gains, Veterans Day will be a paid holiday in the third
year of the agreement, health care benefits are enhanced and group
insurance benefits are improved.

Skilled trades workers had their tool repair/replacement allowance
doubled to $200, along with a 30 cent hourly tool allowance beginning
in the second year of the contract.

Further, Chrysler agreed to indenture at least 1,100 new apprentices.

Similar improvements and gains were made for the UAW-represented
Salaried workforce. Among the job gains was a commitment to add 56 new
engineering jobs at various plants and to add the approximately 550
contract and non-represented Jeep and Truck Engineering workers to the
bargaining unit, when the unit is transferred to the Chrysler Tech
Center.

The new set of contracts covers approximately 66,000 UAW-represented
hourly workers and 6,000 UAW-represented salaried workers at Chrysler
in the U.S.

COMPLETED VOTE TOTALS
Hourly Workers               Totals      Salaried Workers           Totals
--------------------------------------------------------------------------
Production & Maintenance:       73%      Office & Clerical, Nurses:    93%
Skilled Trades:                 65%      Engineering                   81%
Parts:                          86%