Chrysler pact signals change

Detroit Free Press: Given the 40-hour walkout against General Motors Corp. three weeks ago, the UAW strike against Chrysler LLC was not surprising. But the fact that it lasted only six hours certainly was, and gives cause for optimism about the union-management relationship going forward at a major Michigan employer.

Coming on the same day that the UAW announced ratification of the four-year GM deal, it would appear that the union and the domestic industry are indeed serious about working together to regain competitive footing in the North American motor vehicle market. While Ford does not yet have a settlement, the progress to date, even with the brief strikes, entails recognition of the need for change by both sides.

New minivan line

The tentative four-year deal keeps Chrysler on track for the all-important launch of its new minivan line and will keep production rolling for its popular Jeep Wrangler.

UAW President Ron Gettelfinger is clearly cognizant of the long-term impact of this year’s contracts as the domestic industry struggles to reduce costs, so it can become more competitive with foreign carmakers that now command half the North American market. His deal with GM was certainly historic in terms of health care and wage structures. It enabled GM to shed billions of dollars of long-term responsibility for retiree health care by creating a fund for the union to manage.

The new Chrysler owners are wrestling with $18 billion in long-term health care obligations.