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Highlights of proposed Chrysler-UAW contract

by Bill Cawthon on

Chrysler Group and the United Auto Workers union have agreed on terms for a new four-year contract covering approximately 26,000 Chrysler hourly employees. The contract will now be submitted to the union membership for ratification.

Included in the new agreement are the following:

1. Chrysler will make $4.5 billion of direct investment into UAW-represented facilities to produce new models and upgraded vehicles and components, adding 2,100 new jobs and protecting current jobs.

Belvidere Assembly Plant: Estimated plant investment of approximately $600M; Estimated 2,400 jobs retained; Continue production of current Dodge Caliber, Jeep Patriot and Jeep Compass through planned product life-cycle; New vehicle loading based off Compact United States Wide (CUSW) platform.

Sterling Heights Assembly Plant: Estimated plant investment of approximately $850M; Estimated 2,200 jobs re- tained; Continue production of Dodge Avenger, Chrysler 200 and Chrysler 200 Convertible through planned product life-cycle; New vehicle loading based off Compact United States Wide (CUSW) platform.

Kokomo Area Plants: Estimated plant investment of approximately $1,300M; Estimated 3,500 jobs retained; Continue production of current products through planned product life- cycle; New Front Wheel Drive 9 Speed – 948 TE transmission and new Rear Wheel Drive 8 Speed – 845RE transmission.

GEMA Engine Plant: Estimated plant investment of approximately $300M; Estimated 350 jobs re- tained; Continue production of WGE Engine and FIRE engine through planned product life-cycle.

Toledo Machining Plant: Estimated plant investment of approximately $100M; Estimated 550 jobs retained; Continue production of current Steering Columns, FWD and RWD Torque Converters through planned product life-cycle; Production of new/next generation Steering Columns, FWD and RWD Torque Converters.

Trenton North Engine Plant: Estimated plant investment of approximately $100M; Estimated 250 new jobs created; Re-utilize portion of Trenton North Engine Plant to produce an incre- mental volume of 3.8L V-6 increase of 150,000 units.

Additional Investment: The Company plans to further invest approximately $1.3 Billion across multiple manufacturing facilities. This investment will retain an approximately 1,000 jobs and may add up to an additional 1,850 new jobs. It is mutually understood that the product, investment and employment levels detailed above are contingent upon consumer demand generating sustainable and profitable volumes.

2. Members will receive a $3,500 ratification lump sum paid in two checks: $1,750 upon ratification and $1,750 after Chrysler achieves financial stability.

3. $500 annual Performance Bonus paid in June 2012, 2013, 2014, and 2015.
4. $500 annual Quality Bonus paid in 2012, 2013, 2014, and 2015.

5. Up to $1,000 possible Upside Bonus paid annually based on achieving WCM (World-Class Manufacturing) metrics.

6. New annual profit sharing program with greater transparency paid in March 2012,2013, 2014, and 2015 based on 85% of Chrysler Global Modified Operating Profits before interest and special payments.

7. New Hire Wages to grow to $19.28 at end of the agreement (comparable to GM-UAW agreement).

8. Unlimited $25 office visits, annual physicals, no increases in prescription drugs.

9. Tuition Assistance Program reinstated.

10. SUB (Supplemental Unemployment Benefits) pay replenished.

11. Reinstated pay-in-lieu of vacation provisions.

Source: United Auto Workers

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.


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