The UAW and the Chrysler Group have come to a tentative agreement that will result to 2,100 new jobs and will lead to $4.5 billion in facility investments for new products, the union disclosed in a statement. It has been eight days since the UAW arrived at a tentative agreement with Ford Motor Co. The deal between the union and Chrysler encompasses wages and benefits for 23,000 hourly employees of the automaker.
The UAW explained that the arrangement includes $4.5 billion of investment to create "new models and upgraded vehicles and components by 2015," all of which will be spent on the upgrading and retooling of facilities.
The UAW's statement provided no further details. The union called a media convention to talk about the deal in suburban Detroit at 11:30 a.m. ET today. On the other hand, Chrysler also published a statement confirming the deal. However, the company refused further comment until union members ratify the contract.
UAW local leaders from Chrysler facilities all over the nation were scheduled to listen to the specifics of the deal beginning at 9 a.m. ET today at the union's Region 1 headquarters in suburban Detroit.
UAW President Bob King stated that the tentative deal creates a "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."
Chrysler is the last Detroit vehicle manufacturer to reach a new labor agreement. General Motors Co. employees ratified a new four-year agreement on September 28, while Ford employees are presently voting on their agreement.