DARN! Forbes was right, UAW strike against Chrysler is over
by John Neff on Oct 10th 2007 at 5:49PM 
UPDATE: Statement from Chrysler Vice Chairman and President Tom LaSorda added after jump. One detail LaSorda mentioned was that Chrysler would be establishing an "independent retiree health care trust" like the GM is pumping billions into. The amount Chrysler will contribute is still unknown.
Photo by Bill Pugliano/Getty
Whaddya know? Apparently Forbes knew something everyone else didn't, as the UAW has just released a statement saying that it has reached a tentative agreement with Chrysler LLC on a new four-year contract. All of the 49,000 some UAW workers who walked off the line will return to building cars at their next available shift. No details of the arrangement have been released yet, but speculation as to what it entails has probably already started. We'll see if the UAW finds its new Chrysler contract a harder sell to the rank and file than the GM contract that was just officially ratified today.
[Source: Automotive News, sub. req'd]
STATEMENT FROM CHRSYLER:
Tom LaSorda, Vice Chairman and President, Chrysler LLC
Auburn Hills, Mich., October 10, 2007
Chrysler LLC and the UAW have reached a tentative agreement on a new national labor contract, covering approximately 45,000 represented employees. The agreement is subject to UAW member ratification.
The tentative agreement includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts and satisfactory review of accounting treatment with the Securities Exchange Commission.
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. At this time, we cannot discuss specifics of the agreement pending a ratification vote - an internal UAW process.
PRESS RELEASE:
UAW reaches tentative agreement at Chrysler
The UAW this evening announced that it had reached a tentative agreement with Chrysler LLC. The strike against Chrysler at 11 a.m., following the expiration of an extension to the current labor agreement, will end immediately, the union said. The following is the UAW announcement.
UAW President Ron Gettelfinger and UAW Vice President General Holiefield announced today that the UAW has reached a tentative agreement with the Chrysler Corporation.
The strike against Chrysler at 11:00 this morning, following the expiration of an extension to the current labor agreement, will be recessed immediately. UAW Chrysler workers will be notified by the corporation to report to work on 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," said Gettelfinger.
"Once again, teamwork in the leadership and solidarity in the ranks has produced an agreement that protects jobs for our communities and also protects wages, pensions, and health care for our active and retired members," said Holiefield, who directs the UAW*s Chrysler Department.
Photo by Bill Pugliano/Getty
Whaddya know? Apparently Forbes knew something everyone else didn't, as the UAW has just released a statement saying that it has reached a tentative agreement with Chrysler LLC on a new four-year contract. All of the 49,000 some UAW workers who walked off the line will return to building cars at their next available shift. No details of the arrangement have been released yet, but speculation as to what it entails has probably already started. We'll see if the UAW finds its new Chrysler contract a harder sell to the rank and file than the GM contract that was just officially ratified today.
[Source: Automotive News, sub. req'd]
STATEMENT FROM CHRSYLER:
Tom LaSorda, Vice Chairman and President, Chrysler LLC
Auburn Hills, Mich., October 10, 2007
Chrysler LLC and the UAW have reached a tentative agreement on a new national labor contract, covering approximately 45,000 represented employees. The agreement is subject to UAW member ratification.
The tentative agreement includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts and satisfactory review of accounting treatment with the Securities Exchange Commission.
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. At this time, we cannot discuss specifics of the agreement pending a ratification vote - an internal UAW process.
PRESS RELEASE:
UAW reaches tentative agreement at Chrysler
The UAW this evening announced that it had reached a tentative agreement with Chrysler LLC. The strike against Chrysler at 11 a.m., following the expiration of an extension to the current labor agreement, will end immediately, the union said. The following is the UAW announcement.
UAW President Ron Gettelfinger and UAW Vice President General Holiefield announced today that the UAW has reached a tentative agreement with the Chrysler Corporation.
The strike against Chrysler at 11:00 this morning, following the expiration of an extension to the current labor agreement, will be recessed immediately. UAW Chrysler workers will be notified by the corporation to report to work on 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," said Gettelfinger.
"Once again, teamwork in the leadership and solidarity in the ranks has produced an agreement that protects jobs for our communities and also protects wages, pensions, and health care for our active and retired members," said Holiefield, who directs the UAW*s Chrysler Department.
Reader Comments (Page 1 of 2)
mr.ed 6:05PM (10/10/2007)
Not such good news. Chrysler has to sell down its huge sales bank. A couple week strike could have helped that. Has Nardelli found out about it yet?
Reply
job bank sucks 6:05PM (10/10/2007)
That was the hardest I ever seen a chrysler UAW worker actually working. I mean watching them walk that picket line with no chairs to sit on must of been hard work for them. Good thing they only had to walk the line for a 4hr shift. I wonder if they were complaining about when the breaks were schedule in the 4hr period.
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Matt 6:45PM (10/10/2007)
If Chrysler were at all intelligent they would've either disbound from the UAW and hired independant employees, or made the UAW sweat for a few weeks before accepting the demands... not like they don't have old inventory to clear out *anyway*.
Victor 6:12PM (10/10/2007)
Strike it up as another loss for the american auto industry and american consumers.
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job bank sucks 6:23PM (10/10/2007)
I can't wait for these chrysler poor wage workers to start building cars again. Ya I got a pool going on which new chrysler car will be recalled next? I have just a small problem with the UAW, they protect to many bums who don't work, call in sick to much, and well I can on and on. Hey if you want to buy a UAW built car make sure you take off about 8% right off the top then bargin with the dealer but your still daring in buying that car as after 36,000 miles your on your own! Oh wait with chrysler they don't honor there warranty anyway.
J. D. Billiford 6:30PM (10/10/2007)
>>> What really makes this all the more ridiculous is that the strike could have probably been avoided in the first place if the UAW would have been willing to remain at the bargaining table for a few hours longer instead of creating a "do it or else" deadline.
The main thing, however, is that an agreement has been reached and the employees can return to work.
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job bank sucks 6:34PM (10/10/2007)
Good thing they are back to work cause I live in a town with three factories. Have a lot of UAW friends and was wondering how they were going to make there house payments on their $200,000 homes. Can't wait to see whats in this contract. Oh ya I read that GM/UAW workers denied there contract?
Edsel 6:52PM (10/10/2007)
Presumably, Ford will follow in the same steps as GM and Chrysler by transferring billions of health care dollars over to the UAW.
The UAW will now have assets greater than the net worth of any single U.S. auto company. Just imagine the ensuing corruption....
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R Wiggler 7:16AM (10/11/2007)
So where are the Unions going to go when they mismanage these funds and bankrupt the health care trust fund. They will probably go back to the big three with their hands out again threatening to strike.
iQuack 7:15PM (10/10/2007)
Manufacturing unions are nearly dead in the U.S., and it's a good thing.
What frightens me are the public sector unions such as those representing teachers.
Anything that weakens any union is a good thing IMO. Unions are parasites that ultimately kill (or nearly kill) their hosts. Look at the domestic auto companies for the best examples of that. Busting unions is good!
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maxconfus 8:16PM (10/11/2007)
absolutely, the public sector unions make the private sector unions look like the bush leagues when it comes to lack of work and benefit packages. the worse thing is that there is no incentive for the public sector union to negotiate a better deal because the managers are union also; not to mention if I do not like a car because of the extra cost due to union then I buy elsewhere what do you do when the public sector union raises property and school taxes? Move every two years?
Fazzster 7:31PM (10/10/2007)
Next time this happens the manufacturer should just fire all the workers and hire non-union, real American workers who will actually appreciate the employment opportunity and would willingly accept a $40-50K job. Do we really need to pay some of these workers $70-80K per year to work on a line?...and they still can't screw a car together properly. Funny how Honda can make assemble quality cars in this country without a union. We all know it is the unions that have cut into the profits of domestic brands. It is time to show some balls and get rid of them.
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Takezo Kensei 8:00PM (10/10/2007)
Why were the unions created in the first place?
bison 10:53AM (10/11/2007)
> Next time this happens the manufacturer should just fire all the workers and hire non-union, real American workers [snip]
They can't -- labor unions are a government protected monopoly in the U.S.
> Why were the unions created in the first place?
Labor unions go way back, but they became popular in the U.S. during the economic depression of the 1930s. They played a key role in FDR's class warfare propaganda.
sca 8:48PM (10/10/2007)
Just FYI -
There are other UAW employees other than the "guys how screw cars together".... There are model makers, prototype fabricators, CATIA/CAD Engineering designers, Clay modelers/sculptors in the studio, process engineers, and this list goes on. Granted, some of the membership are lazy, un-educated etc. But there are many talented and dedicated people in the UAW that DO contribute to the sucess of Chrysler throughout the Headquarters. All the great showcars Chrysler has done over ther years where all sculpted with union labor. Also, most part CAD releases are done by union personnel, and these folks, contrary to popular belief, are not only educated, they are very necessary to the company. Now, have I seen some crappy stuff happen at a plant... you bet. But I have also seen the same if not more crappy management decisions at Chrysler, like building the Compass (thanks Daimler). So. EVERYONE is important, BOTH sides of the table. And what's MORE important is that EVERYONE involved realize that importance, and the relevance of thier piece of the collective pie. If this industry dies, it is not long before the dominoes topple and the entire country is affected. Thank (insert your higher power here) an agreement was reached quickly, so everyone can get back to making an American Icon great again, together.
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Mark Tisch, Salt Lake City 8:59PM (10/10/2007)
You seem to be in the know at Chrysler. Is it too early for you to have an opinion on whether the Gladiator could get resurrected (speaking of stupid management decisions (Ridenour, in killing it))?
Big Rocket 9:12PM (10/10/2007)
sca @ Oct 10th 2007 8:48PM wrote:
"There are other UAW employees other than the [assembly line workers].... There are model makers, prototype fabricators, CATIA/CAD Engineering designers, Clay modelers/sculptors in the studio, process engineers, and this list goes on... All the great showcars Chrysler has done over ther years [were] all sculpted with union labor. Also, most part CAD releases are done by union personnel..."
Unless you have proof that shows otherwise, what you wrote is almost completely incorrect. Model makers and prototype fabricators may belong to the UAW, depending on how you define them -- machinists belong to the union, the industrial designers (clay modelers and sculptors) do not. And not a single automotive engineer (design/process/CAD engineer) or industrial designer I had met ever belonged to any labor union. I challenge you or anyone else to find a website for engineers or industrial designers who belong to a union.
sca 8:53PM (10/10/2007)
Oh, and yeah, I am NOT UAW...
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sca 9:20PM (10/10/2007)
Umm ...yeah.. You should really do your homework. ALL Engineering CAD designers, NOT INDUSTRIAL DESIGNERS at Chrysler are UAW/Union. Sounds strange, but true. Also, ALL CLAY SCULPTORS at Chrysler are UNION.
You really shouldn't argue about facts you are not aware of.
I should know, since I work there.
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Big Rocket 9:55PM (10/10/2007)
sca @ Oct 10th 2007 9:20PM wrote:
"ALL Engineering CAD designers... are UAW/Union... Also, ALL CLAY SCULPTORS at Chrysler are UNION... I should know, since I work there."
Where is the *proof*? Claiming that you work at Chrysler is not a proof. I am still waiting to see a link to a website for UAW engineers, CAD designers, clay sculptors, etc.