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Chrysler and UAW Reach Tentative Agreement

October 10, 2007

Chrysler LLC and the UAW have reached a tentative agreement on a new national labor contract, covering approximately 45,000 represented employees, according to Tom LaSorda, vice chairman and president, Chrysler LLC. The agreement is subject to UAW member ratification.The tentative agreement includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts and satisfactory review of accounting treatment with the Securities Exchange Commission.“The national agreement is consistent with the economic pattern, and balances the needs of our employees and company by providing a framework to improve our long-term manufacturing competitiveness,” LaSorda says. “At this time, we cannot discuss specifics of the agreement pending a ratification vote–an internal UAW process.”
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