Chrysler, UAW Resume Negotiations on Contract Modeled After GM (less $$$ to new employees)

[Amerigo Vespucci]

Chrysler, UAW Resume Negotiations on Contract Modeled After GM

By John Lippert

Oct. 7 (Bloomberg) -- Chrysler LLC resumed talks with the United Auto Workers today on a four-year contract modeled after the union's tentative agreement with General Motors Corp.

Talks are being held at the company's Auburn Hills, Michigan, headquarters, said spokeswoman Michele Tinson. ``We remain optimistic that we will reach an agreement that meets the needs of the company, our employees, and the UAW,'' Tinson said.

The highlight of the GM contract is GM's commitment to shed $50 billion in retiree health-care obligations by putting $29.9 billion into a union-run retiree-health fund.

In its contract, GM also assured future work for at least 55 of 82 UAW plants in the U.S. and agreed to stop sending new work to outside suppliers. The automaker, in turn, will pay less to new employees, meaning labor costs will decline as current factory workers retire.

http://www.bloomberg.com/apps/news?pid=20601103&refer=news&sid=adCNcSLok2bs

[Fading Captain]

1. Good luck UAW

A two-tiered wage structure is going to be murder on the shop floor.

Equal pay for equal work? Not anymore.