Chrysler Reaches Agreement With Labor Union

October 17 00:00 2011

New York, October 16 ( – In an agreement that may set precedents for how negotiations must occur when management and labor are at loggerheads, Chrysler announced its intentions to co-operate with the labor union and try and save their jobs.

Chrysler, the Detroit based car maker finds itself in a precarious position. Its financials are in a mess with creditors breeding down their necks. At the same time, costs are going up making it less competitive. Also laborers are wary that their jobs may be outsourced to Mexico or some other low cost country.

However, the two have struck a deal. The workers have agreed to take lower bonuses. Also, the workers will get only 50% of the bonus now and will have the right to receive the balance later when Chrysler reaches financial stability. The workers promised to not demand wage increases for the next couple of years.

In return Chrysler Motor Corp has agreed with the laborers to get back some of the work that has been outsourced to low cost countries like Mexico. They have also agreed to increase the wages of entry level workers before wages are freezed.