Chrysler, UAW Strike Labor Deal
Chrysler and the United Auto Workers have reached a tentative deal that is expected to bring as many as 2,100 new jobs to the automaker by the end of 2015, the UAW said.
The agreement marks Chrysler’s first labor contract since its government bailout and bankruptcy filing in 2009. UAW President Bob King said the deal commits Chrysler to more than $4.5 billion investment in new vehicle production.
The four-year contract covers about 26,000 of Chrysler’s registered hourly workers. The No. 3 Detroit automaker said the agreement is subject to UAW member ratification, but it would not comment further on the deal.
“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,” King said. “This tentative agreement builds on the momentum of job creation and our efforts to rebuild America.”
The agreement follows others reached recently by larger U.S. rivals General Motors (NYSE:GM) and Ford (NYSE:F). The GM contract was ratified by workers late last month and the Ford deal faces a vote next week.
King said all three contracts bring more than 20,000 new jobs to those companies, and as many as 180,000 new jobs when considering suppliers and businesses that are supported by auto manufacturing.