UAW leaders recommend approval of Chrysler deal

[Jack Bone]

UAW leaders recommend approval of Chrysler deal
By DAVID N. GOODMAN and TOM KRISHER – 2 hours ago

http://www.google.com/hostednews/ap/article/ALeqM5i84F32eb7AYTqfxaEOA7z4e2tH6AD97R85PO0

STERLING HEIGHTS, Mich. (AP) — The United Auto Workers union will own 55 percent of a restructured Chrysler LLC and its retiree health care trust will get a seat on the board if union members vote to approve contract concessions this week. Chrysler stock could even be traded publicly again, as there are mechanisms for the UAW to sell shares to fund the health care trust.

Factory-level union leaders voted unanimously Monday night to recommend approval of concessions that union President Ron Gettelfinger said would help keep the automaker out of bankruptcy.<snip>

The Obama administration required that equity fund at least 50 percent of Chrysler's $10.6 billion obligation to a union-run trust that will take over retiree health care costs starting next year, according to the summary. It also said that under the agreement, workers will no longer get most of their pay if they are laid off. Instead, they will get supplemental pay from the company equal to 50 percent of their gross base pay.<snip>

Under the UAW deal reached with Chrysler, Fiat and the U.S. Treasury Department, cost-of-living pay raises will be suspended through the contract's expiration in 2011, and it adds a provision for binding arbitration on a new contract through 2015. If no agreement can be reached on a new contract, the arbitrator must base total hourly labor costs on a rate comparable to Chrysler's U.S. competitors, including foreign-owned manufacturers. The union also agreed to consolidate nonskilled labor job classifications into a team concept at all factories. Performance and Christmas bonuses will be suspended this year and next to help pay health care costs.<snip>

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