UAW Calls Kokomo
The tentative contract between Chrysler Group LLC and the UAW
includes employment and product guarantees for the automaker's Kokomo
operations. The deal outlines an estimated plant investment of approximately
$1.3 billion and plans to retain 3,500 Hoosier jobs. It also guarantees
continued production of current transmissions through their planned lifecycle.
Chrysler has three transmission plants and a casting facility in Kokomo.
Those workers are in line for a pay boost if the tentative contract between
the UAW and Chrysler Group LLC is ratified. The agreement includes bonuses of up
to $6,500 in bonuses. Reports out of Detroit alos say the deal has a revised
profit sharing formula, similar to the deal approved by General Motors Co.
(NYSE: GM) workers.
You can view a summary of the contract by
October 12, 2011
DETROIT – Just eight days after reaching a tentative agreement with Ford
Motor Co., the UAW reached a tentative agreement with Chrysler Group LLC today,
completing its third agreement with domestic automakers in a month.
“Less than three years ago, Chrysler was teetering on the edge of
bankruptcy as our nation was thrown into the worst economic crisis since the
Great Depression,” said UAW President Bob King. “This tentative agreement builds
on the momentum of job creation and our efforts to rebuild America by adding
2,100 new jobs by the end of the agreement in 2015 to communities left in
turmoil in the wake of the country’s economic collapse.” King added.
“This tentative agreement, coupled with the new agreements at General
Motors and Ford bring more than 20,000 new jobs to communities across America,”
said King. “Together with the jobs created in suppliers and other businesses
supported by auto manufacturing, a total of 180,000 jobs will be added to the
country’s battered economy. Through collective bargaining and working together
with the domestic automakers, we have shown that cooperation and collective
bargaining work,” King added.
The UAW Chrysler proposed agreement also
includes $4.5 billion of investment to produce new models and upgraded vehicles
and components by 2015, all of which will be invested directly into retooling
and upgrading plants.
“This agreement is the latest in a remarkable
turnaround for Chrysler,” said UAW Vice President General Holiefield, who
directs the union’s Chrysler Department. “The company declared bankruptcy just a
few years ago and with great sacrifice by UAW Chrysler workers and with federal
loans and support from the Obama Administration, Chrysler has paid back the
loans in full. Today, thanks to the dedication of its UAW workers, Chrysler is
showing strong sales and adding new cars to its line-up, additional shifts at
plants, and creating new jobs. Chrysler has turned the corner and with this
agreement will continue to move forward. It’s a new day at Chrysler,” Holiefield
The Chrysler loans from the U.S. Government were paid in full, six
years before they were due. The loans provided the foundation for the company’s
turnaround, and its ability to now give its workers what they deserve.
The UAW reached a tentative agreement with GM on Sept. 16 and with Ford
on Oct 4. The GM agreement was ratified by UAW members with a 2:1 ratio on Sept.
28. The Ford agreement is pending ratification by UAW members. Voting at Ford
will be completed by Oct. 18.
The UAW represents 26,000 employees at
Chrysler, including 3,000 salaried employees at 48 Chrysler facilities in the
United States, making vehicles and components with the Chrysler, Jeep, Dodge,
Mopar and Ram Truck brands.
Details of the agreements can be seen at
Source: United Auto Workers