Chrysler and UAW Agree to Deal Before Federal Deadline

Following on the heels of CAW union ratification of new deal, Chrysler and UAW also come to terms

DETROIT - April 26, 2009: Chrysler and the United Auto Workers union have reached a tentative agreement that meets the federal government’s requirements for the automaker to receive more financing.

The deal also includes Fiat, the Italian automaker with which Chrysler was ordered by the government to form an alliance before Thursday.

Neither the United Automobile Workers union nor the company released details of the agreement, which modifies the union's 2007 contract and reduces the amount of money Chrysler must pay into a new health care fund for retirees.

The union plans to have its 26,000 Chrysler workers vote on the deal by Wednesday.

Ron Gettelfinger, UAW President said, “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 U.A.W. 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 said the agreement, reached during marathon negotiations over the weekend, satisfies the requirements laid out by the Obama administration for a deal by an April 30 deadline.

Chrysler, which has received $4 billion in federal loans, is in the final stages of a reorganization process ordered by the government, which includes a mandate to provide financing for half of all union retiree health care using company stock.

Al Iacobelli, Chrysler's Chief Bargainer and Vice President – Employee Relations, said, "Chrysler LLC has reached an agreement today with the UAW subject to ratification. We commend the UAW’s leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry. The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department. As a result, Chrysler LLC can continue to pursue a partnership with Fiat SpA." Iacobelli added, "Chrysler management has the utmost respect for thousands of men and women who are an integral part of our manufacturing operations."