Chrysler in Tentative Deal with UAW – Chicago Ford Workers Reject Deal

October 13 00:00 2011

New York, October 13 ( – Workers at Ford Motor’s (NYSE: F) assembly plant in Torrence Avenue have rejected the earlier tentative deal between the UAW and the Chrysler management, whereas Chrysler has entered into a tentative deal with the UAW on Wednesday that would add 2,100 new jobs and $4.5 billion in new investments at Chrysler’s U.S. plants.

The agreement between Chrysler and the UAW includes a $3,500 signing bonus; inflation protection bonus of $500 each year over the four-year contract, for a total of $2,000 over the life of the contract; and a $500 annual quality bonus. Chrysler has agreed to invest in several Chrysler plants if the deal is ratified by the company’s 26,000 UAW members by a majority vote. Moreover, Kokomo’s Chrysler transmission complex would be geared up to produce a new front-wheel drive 9-speed transmission and new rear- wheel drive 8-speed transmission.

Meanwhile, 1,778 workers of a total of 2,317 workers at Ford Motor’s assembly plant on Torrence Avenue voted against the proposed deal between the company and the United Auto Workers. The tentative agreement agreed earlier between the UAW and the company included a $6,000 signing bonus and profit-sharing checks in lieu of annual raises. The bone of contention was new hires getting lower pay than existing employees to keep costs down.