Chrysler wins union concessions

[Americanhero1]

UAW says it reaches agreement on modifications in collective bargaining accord needed to keep carmaker out of bankruptcy.

NEW YORK (CNNMoney.com) -- The United Auto Workers announced Sunday that it has reached a settlement agreement on concessions in its contract with Chrysler LLC necessary to keep the automaker in business.

The union, in a statement, said the agreement was reached with Chrysler, Fiat and the Treasury Department. It said the deal includes modifications to the union's 2007 collective bargaining agreement and the trust program dedicated to retiree health benefits.

Details of the agreement are being presented to the union's members, who will vote on ratification by Wednesday.

"We recognize this has been a long ordeal for active and retired auto workers, and a time of great uncertainty," said UAW President Ron Gettelfinger in the union statement. "The patience, resolve and determination of UAW members in these difficult times is extraordinary, and has made it possible for us to reach the agreement we will present to our membership."

On Friday, Chrysler reached agreement with the Canadian Auto Workers on a deal that would, among other things, cut wages and bonuses and eliminate the employee pricing for vehicles. That agreement was up for a ratification vote over the weekend.

Chrysler has been given until the end of the month to come up with an acceptable agreement with its unions, Fiat and its bondholders in order to avoid a bankruptcy filing
http://money.cnn.com/2009/04/26/autos/chrysler/index.htm

[cjd]

It's very sad for me to see a company like Chrysler taking its final gasps of air before it goes under for the last time but I honestly believe Chrysler has come to the end of the road. The thing most people who are not well versed in the car business fail to understand is the fact that people who buy Chrysler Corporation products want it to be an American product. Most Chrysler buyers resented the fact that Chrysler became a German company overnight in the Daimler  merger now they are getting a second dose of the same garbage with Fiat. While its true that Fiat will not have controlling interest as Daimler did for now Fiat is expected to supply small car design and technology to Chrysler for its American market. Fiat has never been able to crack the American market place itself so I guess whatever they are selling must not have been to appealing to the American car buyer. What has changed now? Chrysler had some of the best automotive electronics in the business some of the most durable engines and transmissions ever made. Their electronics helped put man on the moon since they produced a big part of the mission control equipment for NASA. I picture Walter P. Chrysler turning in his grave as this deal is being cooked up. He was a mid west locomotive mechanic who was as American as they come the thought of his company going into the hands of foreigners for a second time in less then 10 years would really have make him sick. I think he would have rather see his company die a noble death then to see it mauled to death like this.

[arksis]

I agree 100% cjd...........what a sad time this is for us.

[briann]

Yes, its VERY depressing to see this.  I also hate to see Pontiac disappear.  I used to love Smokey and the Bandit and Knight Rider.

This was a certainty for the last 10 or so years.  It was impossible for these car companies to turn a profit... since its very competitive and the unions have put the U.S. at a huge disadvantage.  The Profit margins.... even in strong years rarely got above 1%.

That is why I was so angry to see Obama 'throw out' GM's CEO and have the audacity to say.. good riddance.  Obama has no idea what it takes to keep an American car company in the black... and Wagner was doing the best he possibly could under the circumstances.

[cjd]

Yes, its VERY depressing to see this.  I also hate to see Pontiac disappear.  I used to love Smokey and the Bandit and Knight Rider.

This was a certainty for the last 10 or so years.  It was impossible for these car companies to turn a profit... since its very competitive and the unions have put the U.S. at a huge disadvantage.  The Profit margins.... even in strong years rarely got above 1%.

That is why I was so angry to see Obama 'throw out' GM's CEO and have the audacity to say.. good riddance.  Obama has no idea what it takes to keep an American car company in the black... and Wagner was doing the best he possibly could under the circumstances.

Wagner was a very good CEO. He worked very hard to keep GM going. What the shvartza President did to him was a crime. GM had a chance with Wagner running the restructuring with him gone they are already making big mistakes. The decision to completely scrap Pontiac was a big mistake. Pontiac was a young persons car and GM needs to rebuild its customer base and develop some repeat buyers. It was Saturn that needed to go away and some redundant models in each division needed to be cut. Wagner would have known what to cut. I think he was well on his way to cutting a number of redundant models for the new model year. Pontiac still had a great deal of life in it it just needed less models.