The United Auto Workers Chrysler Council announced Wednesday it reached a tentative agreement with the automaker.
Under the terms of the deal, new employees will be paid $19.28 an hour and be eligible for tuition-assistance programs and an unlimited $25 co-pay for doctor's office visits, life insurance, and other benefits.
The agreement also includes a $3,500 ratification bonus and $1,000 in annual bonuses for performance and quality. Furthermore, employees will be awarded profit-sharing bonuses after the company becomes more financially stable.
The deal includes $4.5 billion to fund new and upgraded cars and components by 2015.
For all those people who attack unions and want to eliminate collective bargaining, these contracts prove that collective bargaining works, UAW President Bob King said in a statement. It works for the companies, it works for the employees, and it works for America. The UAW agreements with Ford, GM, and now Chrysler provide decent wages, benefits, and rights on the job for workers while ensuring quality products and healthy profits for the company.
The union also reached labor agreements with General Motors last month and Ford last week. However, like the Chrysler deal, the agreement with Ford must be ratified by the full union. Chrysler won't discuss the agreement until the vote is complete.
The union notes the agreements with the three automakers, assuming all are approved, will add more than 20,000 jobs: 6,400 at GM, 12,000 at Ford, and 2,100 at Chrysler.
The UAW and Chrysler began negotiating a new contract in July, but had trouble reaching an agreement. Last month, the two parties agreed to a contract extension because it was scheduled to expire.
While Ford and GM netted first-half profits of $4.95 billion and $5.7 billion, respectively, Reuters notes Chrysler lost $254 million during the same period. This led CEO Sergio Marchionne last week to call the deals with Ford and GM overly generous for Chrysler.
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