Chrysler, the UAW and the U.S. government reached an agreement late last night that helps pave the way for the partnership between the automaker and Fiat, along with qualifying Chrysler for further government loans.
The deal was struck after a marathon session just four days before the U.S. deadline for Chrysler to ink a deal with Fiat. The UAW agreed to a new round of concessions soon after the CAW ratified its own deal with the automaker on Sunday. The changes to the UAW/Chrysler contact don't involve wage reductions, but the union has agreed to a $10.6 billion cut to the retiree health-care trust (VEBA). The UAW members have until Wednesday to approve the deal.

[Sources: Chrysler, Detroit News]

PRESS RELEASE

Chrysler LLC Statement in Response to UAW and Chrysler Reaching a Tentative Agreement

Auburn Hills, Mich., Apr 26, 2009 - Chrysler LLC Statement in Response to UAW and Chrysler Reaching a Tentative Agreement Attributed to Al Iacobelli, Chief Bargainer and Vice President – Employee Relations:

Chrysler LLC has reached an agreement today with the UAW subject to ratification. We commend the UAW's leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry.

The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department.

As a result, Chrysler LLC can continue to pursue a partnership with Fiat SpA.

Chrysler management has the utmost respect for thousands of men and women who are an integral part of our manufacturing operations.

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