Chrysler, autos union agree on labor contract

 

Carlos Osorio / AP

Cars are seen on a Chrysler assembly line in Sterling Heights, Mich.

The United Auto Workers (UAW) union and Chrysler have reached a tentative four-year labor contract deal, the automaker said on Wednesday.

The deal follows agreements between the UAW and Chrysler's Detroit rivals General Motors and Ford. The UAW deal is Chrysler’s first since its bankruptcy and government bailout in 2009. It covers its 26,000 hourly production workers.

The agreement is subject to UAW member ratification. The GM contract was ratified by its workers late last month and Ford workers are in the process of voting that ends Oct. 18.

UAW President Bob King said in a press statement that the Chrysler pact will create 2,100 U.S. jobs and will include $4.5 billion in investments to produce new models and upgraded vehicles and components by 2015.

“Less than three years ago, Chrysler was teetering on the edge of bankruptcy as our nation was thrown into the worst economic crisis since the Great Depression,” King said. “This tentative agreement builds on the momentum of job creation and our efforts to rebuild America by adding 2,100 new jobs by the end of the agreement in 2015 to communities left in turmoil in the wake of the country’s economic collapse.”