UAW members at Chrysler have overwhelmingly approved a deal that sees Chrysler paying some of its legacy obligations to UAW members in the form of stock and therefore reducing its future liabilities on healthcare.
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UAW President Ron Gettelfinger said it was a ‘painful’ agreement for the UAW’s members, but that it gives Chrysler a chance to survive.
Chrysler’s Tom LaSorda, Vice Chairman and President, said in a statement: “We are thankful to the Chrysler UAW members for their support in ratifying this contract, especially during these challenging times. This was a necessary step as we move forward in revitalising this great company. Today’s vote enables us to continue our work to meet the conditions laid out by the US Treasury Department. The entire Chrysler leadership team believes in and appreciates the men and women that make up our great workforce worldwide.”
Under the new agreement, the 2007 Chrysler-UAW contract deal is modified to reduce the amount of money Chrysler would need to contribute to a retiree healthcare trust. In return, the UAW gets stock.
