Chrysler, UAW reach deal

Chrysler, UAW reach deal

Associated Press

WARREN, Mich.

Chrysler and the United Auto Workers union finally have agreed on a new contract.

The company was the last Detroit carmaker to reach a deal with the union after more than two months of bargaining and several snags. The tentative agreement, reached Wednesday, creates up to 2,100 new jobs and promises $4.5 billion in investments at U.S. plants. It was the first labor agreement for Chrysler since its government bailout and bankruptcy two years ago.

The deal is less generous than those reached earlier with General Motors Co. and Ford Motor Co., but Chrysler Group LLC also is less profitable than its rivals.

Union officials said the contract, which includes a $3,500 signing bonus but gives most workers no annual raises, is the best they can do. They promised profit-sharing checks once the company is making money again.

“Naturally, we would have wanted to do a lot more for the Chrysler workers,” said UAW Vice President General Holiefield, who led the Chrysler negotiations. Holiefield said the union wanted to reward workers but not hurt the company’s bottom line as it struggles to make a profit.