USA: UAW-Chrysler deal raises basic pensions - report
The United Auto Workers' tentative contract with Chrysler would raise a key pension benefit by about 9 percent over the next four years, less than some Wall Street analysts had expected, according to a summary of the deal obtained by Reuters.
UAW President Ron Gettelfinger has said he expects Ford Motor Co. and General Motors Corp. to follow the economic terms of the Chrysler deal.
The Reuters report noted that the increase is less than the 17 percent hike the UAW won in 1999 over the life of its previous four-year deal with the automakers and their largest parts suppliers. Automakers have struggled with multibillion-dollar holes in their pension funds over the last few years, with GM reporting a $19 billion underfunding at the end of 2002.