The Detroit News reports that the United Auto Workers is close to ratifying a new four-year labor contract with Chrysler. The company's Warren Truck Plant voted in favor of the new deal on Tuesday, with 70 percent of union workers there casting ballots for the measure. That vote followed the Toledo North Assembly Plant's 'yes' vote on Monday, which helped to stave off fears of a veto.
The United Auto Workers are currently negotiating new labor contracts with The Detroit Three. Due to bankruptcy restrictions, UAW members working at General Motors and Chrysler and can't go on strike. Ford, on the other hand, didn't get a no-strike clause since it didn't go through the bankruptcy process. That means the UAW can walk off Blue Oval production lines if it chooses to do so, and it is already threatening to do just that if it doesn't get the agreement it wants when the current contra
Until Detroit automakers signed landmark deals with the UAW that shifted retiree health care costs to the union, it was cheaper to make vehicles in Canada. Government health care saved automakers about $6 per work hour, a savings of over $12,000 a year per worker. Since Ontario produces more vehicles than any state in the Union, that represented huge savings for the Detroit Three. However, after the new deals were struck with the UAW, that advantage has disappeared. To make the situation worse,
Bankrupt auto parts manufacturer Delphi and the unions representing its 33,0000 workers had their first day in court Tuesday, as the U.S. Bankruptcy Court opened its hearing on Delphi's request for permission to terminate its labor contracts with the unions.