UAW reaches agreement with Chrysler, Feds, Fiat

The United Auto Workers union today announced it had reached an agreement with Chrysler, Fiat and the U.S. Treasury that will reduce Chrysler’s obligations to the union’s retiree healthcare program.

The deal marks another hurdle Chrysler has cleared in its efforts to avoid filing for bankruptcy and clear the way for an alliance with the Italian automaker.

In a statement UAW President Ron Gettelfinger thanked union members for their willingness to sacrifice.

“We recognize this has been a long ordeal for active and retired auto workers, and a time of great uncertainty. 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.”

The UAW agreement must be ratified by Wednesday.

The members of the Canadian Auto Workers union ratified their new agreement with Chrysler with 87 percent voting in favor.

This leaves Chrysler’s secured creditors as the only remaining obstacle to the company successfully meeting the requirements set the the Obama Administration’s auto task force and qualifying for billions of dollars in additional government loan assistance.