The UAW and Chrysler have announced a tentative contract deal. As expected, Chrysler workers make fewer gains than GM or Ford workers did in their recently announced agreements, given Chrysler's relatively weaker profits. The UAW has made it a priority to secure commitments from the auto manufacturers to invest in American manufacturing and jobs, though, and Chrysler did agree to
invest $4.5 billion and create around 2,100 new jobs in America, including new compact vehicles to be manufactured in Illinois and Michigan. All of these new jobs, though, will be at the second-tier pay rate, currently $14.65 an hour but rising to $19.28 through the four-year life of the contract; a cap on the percentage of second-tier workers Chrysler can employ would be eliminated under this contract, with Chrysler already employing a higher proportion of the lower-wage workers than GM or Ford.
The deal, which must be ratified by workers, also includes:
$3,500 signing bonus, with half to be paid up-front and half to be paid at a later date when Chrysler reaches certain financial targets.
• Inflation protection bonus of $500 each year over the four-year contract for a total of $2,000 over the life of the contract. This is less than the $3,000 GM workers received for a similar bonus in their contract and the $6,000 Ford workers could gain from their contract.
• $500 annual quality bonus.
Additionally, "The tentative agreement returns to workers the Tuition Assistance Program they gave up during the economic downturn."
Chrysler workers will vote on this contract over the next couple of weeks. Voting at Ford, meanwhile, ends Oct. 18 and early results are extremely tight. Ford workers, unlike those at Chrysler and GM, retain the right to strike.