Automobiles: UAW Contract approved by local leaders

According to United Auto Workers union Chief Ron Gettelfinger, the leaders of the UAW locals have voted overwhelmingly for the tentative agreement between the union and Chrysler LLC making way for their members to vote for the contract too.

In a booklet containing the contract highlights, it is said that UAW members working in Chrysler LLC facilities will have gains of $10,235 along the term of the contract. Like the Voluntary Employees Benefits Association (VEBA) provision in the GM deal, Chrysler also committed to contribute $10.3 billion to a union-controlled trust fund that will take over Chrysler s retiree health care liabilities. Also, the union said that the new contract overturned Chrysler s plan of selling its parts division and a parts-trucking operation.

For job security demands of the UAW, the booklet said that the new four-year contract has unprecedented product guarantees". It will protect the jobs of the UAW members and will eventually maintain the U.S as the company s manufacturing base. The voice vote approval of the local leaders were expressed after the members of the national bargaining committee members explained the terms of the deal to them for about four hours.

"Anytime that you go into a council, anybody can raise their hand and raise any issue they want," Gettelfinger told reporters after the meeting. "A lot of people are concerned about a particular issue that impacts them.

"There was a lot of discussion around all the aspects of the agreement, which we're very pleased with, and we're happy that it was overwhelmingly recommended."

But not all local leaders present in the meeting approved the contract. According to Bryce Cobb Jr., president of UAW local 372 in Trenton, minority of the local officials are against the contract. They are opposing the job security elements of the contract which, compared to that of General Motors are less extensive. The booklet also said that out of the 13 plant listed; seven are left with no future products aside from its present production. However, according to the union, the contract reversed Chrysler s decision to close a Toledo, Ohio facility producing torque converters and steering columns.

The GM contract provided $13,056 gains for its workers along its four-year effectiveness while the Chrysler contract only entails $10,235 with a $2,821 significant gap.

"It was not unanimous, but it was a big vote for it," said Ross Rushing, a shop committeeman from Local 72 in Kenosha, Wis., who said he was satisfied with the deal. "Our bargaining committee did the best they could."

The new contract with Chrysler covers almost 45,000 workers and 78,000 UAW retirees and their spouses. The contract must be voted upon by the active workers for its implementation and Gettelfinger said that the union has not yet decided on when to start the voting.

Under the management of its new owner, Cerberus Capital Management, the automaker still managed to launch the 2008 model year of its vehicles. Several Jeeps had been recently redesigned and upgraded like the Jeep Grand Cherokee, Jeep Wrangler, Jeep Commander and other cars carrying the Jeep brand showing that the Jeep is still the mighty vehicle for tough trails made even better with the upgrades made by the company. The Chrysler Sebring had recently been set to production and dealerships with fresh innovations to be an icon in the convertible line-ups dominated by BMWs, Volkswagens (with Volkswagen catalytic converter) and Volvos.

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Automobiles: UAW Contract approved by local leaders

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