Chrysler LLC has cleared a major obstacle to its survival. The United Auto Workers union (UAW) announced Sunday that it reached a settlement agreement on concessions in its contract with the automaker necessary to keep it (Chrysler LLC) in business.
From CNNMoney: The union, in a statement, said the agreement was reached with Chrysler, Fiat and the Treasury Department.
It said the deal includes modifications to the union’s 2007 collective bargaining agreement and the trust program dedicated to retiree health benefits.
Details of the agreement are being presented to the union’s members, who will vote on ratification by Wednesday.
“We recognize this has been a long ordeal for active and retired auto workers, and a time of great uncertainty,” said UAW President Ron Gettelfinger in the union statement. “The patience, resolve and determination of UAW members in these difficult times is extraordinary, and has made it possible for us to reach the agreement we will present to our membership.”
Chrysler still need to reach two critical deals to avoid liquidation: it must reach an agreement with Fiat, and have banks forgive much of their $6.9 billion in loans to the automaker, in return for accepting an equity stake in the new Chrysler.
On Friday the troubled automaker secured another union victory by ratifying a vote from Canadian Auto Workers membership.