Chrysler Group says a new national labour agreement, covering 26,000 employees, has been ratified by its UAW-represented workforce in the US.
As part of the new agreement, Chrysler has confirmed plans to invest an additional US$1.3bn to retool and upgrade plants for the production of new products, bringing the company's total US investment to US$4.5bn.
Additionally, it may add up to 2,100 new jobs in addition to more than 2,500 jobs previously added.
"No one involved in the bargaining process leading to this agreement could forget about our near-death experience slightly more than two years ago and the second chance we were given by the American and Canadian taxpayers," said Chrysler group chairman and CEO Sergio Marchionne. "
"The faith placed in us then has been fully repaid. This agreement is a credit to our workforce and the UAW leadership. It recognises the significant contributions they have made toward our continuing recovery. It rewards them for the current and potential future success of the company while ensuring Chrysler will be able to remain competitive."
The agreement recognises hourly employees with a simpler profit-sharing plan based on company performance. In addition, a new quality performance-based bonus will give employees an opportunity to benefit from improvements in the initial quality of the vehicles.
Since June 2009, Chrysler Group has announced investments of more than US$3.4bn at its US facilities.