Chrysler car workers' strike ends with agreement

The United Auto Workers union in America reached a tentative four-year contract with Chrysler, six hours after going on strike.

The dispute follows a similar strike at General Motors last month, which was resolved when staff secured guarantees over working conditions.

The UAW has still to reach a settlement with Ford.

A person with knowledge of the Chrysler LLC agreement said it includes some guarantees that vehicles will be produced at US factories, a company-funded union-run trust that will pay much of Chrysler’s US$18bn (€13bn) in long-term health care costs, and a lower wage scale for some newly hired workers.

But the new vehicle guarantees are not as extensive as those given by General Motors, they said..

The guarantees, which translate into job security for union workers, are in many cases only for the life of current products, the person said.

GM made guarantees at many factories that include the next generation of cars, lorries and parts.

The new lower wage scale, the person said, covers new hires who would replace Chrysler Mopar parts transport workers.

Buyout and early retirement offers would be made to current workers in an effort to get them to leave, the person said.

The lower wage scale is similar to the one negotiated by GM, the person said.

UAW President Ron Gettelfinger said the strike against Chrysler, which is 80.1 percent owned by private equity firm Cerberus Capital Management LP, would end immediately and workers should report for their next available shift.

“This agreement was made possible because UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company,” Gettelfinger said in a statement.

Gettelfinger would not release any details of the contract, but Chrysler said the tentative agreement includes the health care trust. The newly private company didn’t say how much money it will contribute to the trust.

“The national agreement is consistent with the economic pattern and balances the needs of our employees and company by providing a framework to improve our long-term manufacturing competitiveness,” Chrysler Vice Chairman and President Tom LaSorda said in a statement.

Chrysler’s national UAW contract covers about 45,000 workers and 78,000 retired employees and spouses.