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UAW Members Overwhelmingly Ratify New Agreement at DaimlerChrysler

27 September 1999

UAW Members Overwhelmingly Ratify New Agreement at DaimlerChrysler

    DETROIT, Sept. 27 -- UAW members at DaimlerChrysler
have ratified the proposed new four-year agreements for hourly and
salaried employees by an overall majority of 86 percent.
    "Our members at DaimlerChrysler have every reason to be proud of these
industry leading contracts and every reason to be proud of the contribution
they have made to turning this company around and that pride is reflected in
the overwhelming rate of approval for this agreement," commented UAW President
Stephen P. Yokich.
    Yokich commended the National DaimlerChrysler bargaining team chaired by
Mike Allen from UAW Local 624 and the constructive approach to labor-
management relations demonstrated by Tom Stallkamp of DaimlerChrysler for "an
agreement that will serve our members and the industry well over the next four
years."
    The four-year contracts provide economic gains of more than $29,300 for a
typical DaimlerChrysler assembler and $30,900 for a typical Grade 8 salaried
employee over the life of the agreement.  For the first time in more than 20
years the 3 percent annual wage increase in each year of the contract is
restored.  The agreements also provide for a $1,350 up-front bonus.  For the
first time in 28 years, the contracts also improve the COLA formula which
protects UAW DaimlerChrysler members in the event of increases in the cost-of-
living.
    Other highlights of the agreements include a job security program which
requires the company to hire new workers when employment declines below
certain defined levels and a guarantee that 1,200 new skilled trades
apprentices will be hired.
    The contracts increase the base rate of pensions to a range of $46.70 to
$47.45 per year of credited service and raise the benefit for spouses,
including surviving spouses and the spouses of current retirees from 60 to 65
percent.  The agreements also provide for lump sum payments to current
retirees in December of the years 2000, 2001 and 2002.  The calculation of the
lump sums will be related to an inflation protection feature first negotiated
in the 1996 UAW contracts with the Big Three automakers.
    Sixty-seven holidays are provided over the four-year period covered by the
contracts, including first-time holiday observances on Federal election days
in 2000 and 2002.  Tuition assistance for the dependent children of UAW
DaimlerChrysler members, first negotiated in 1996, is increased from $1,000 to
$1,250.
    A new letter on corporate neutrality and improved language on corporate
citizenship will better protect workers in non-union plants who are seeking
union representation.
    Health care benefits are improved with no increases in any co-pays.
Health and safety gains include gains in ergonomics, reduced exposure to metal
working fluids and renewed funds for health and safety training and research.
    Specific highlights of the salaried agreement include: increasing the
progression percentage; reducing the time it takes to reach the top level of
pay grades and eliminating outside contract designers at the Chrysler
Technology Center.
    The new set of contracts covers approximately 69,000 UAW-represented
hourly workers and 6,600 salaried employees and DaimlerChrysler facilities in
the U.S.