UAW ratifies new labor contract with Chrysler

Article by Christian Andrei, on October 28, 2011

Amid some disagreements between skilled trades and production workers, the UAW’s executive board has voted to ratify a new labor contract with Chrysler. Most of Chrysler's UAW-represented production workers voted for the approval of the new labor agreement but most of the skilled trades workers voted for the rejection of this deal.

Since most of the union's skilled trades members voted to deny the tentative hourly agreement, the union’s executive board held an investigation.

In a statement, the union said that the board concluded that the rejection was for reasons that were "predominantly economic and not unique to skilled trades members.” The union also said that the board then declared the deal to be ratified under the UAW constitution. It was revealed that 54.75% of production and skilled trades workers voted to approve the deal.

But 55.59% of skilled trades workers opposed the deal. The union added that the agreement was supported by 68.8% of salaried workers. This pact covers the wages and benefits for Chrysler’s 23,000 workers.

Chrysler, which has yet to post an annual profit since 2005, estimates that it will be able to reach a net income of $200 million to $500 million for 2011.

Topics: chrysler, uaw

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