UAW Calls Kokomo 'Transmission Capital'

UAW Calls Kokomo 'Transmission Capital'

InsideINdianaBusiness.com Report

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 clicking here.

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 added.

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 www.uaw.org.