UAW Scrambles to Push Through Chrysler Pact
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As a tentative labor contract with Chrysler runs into opposition, officials from the United Auto Workers union are urging members at plants in Michigan, Indiana and Illinois to consider its benefits. Critics of the deal strongly oppose new features in the contract, like an unprecedented two-tier wage system. On that item, UAW HQ says the new system will pull Chrysler away from its current practice of shifting low-end work to non-unionized suppliers. In a letter sent to members by email Monday, in which the union officials decry the "misinformation" spread by the deal's opponents, they say the contract "will bring those jobs back at a new entry-level rate of pay and benefits." "We believe you deserve to know the bare truth about the tentative agreement so you can make an informed decision when you vote," the letter said. In related news, sources close to the negotiations said Monday that Chrysler has promised that if the union approves the new contract, it will keep some plants operating beyond the contract's 2011 expiration. In addition, UAW VP General Holiefield was quoted as saying one of Chrysler's St. Louis plants has been given a product guarantee. "It sounds to me like they're making one more push for the deal, to get it ratified," said IRN Inc. analyst Erich Merkle. "I guess it comes down to whether the member base of the UAW trusts the leadership in terms of these handshake-type deals."
Commentary: Chrysler, UAW Reach Tentative Agreement, Ending Strike • As UAW Ratifies Labor Pact, GM Sees Big Savings Ahead • Why Are Ford and Chrysler Letting GM Lead Negotiations With the UAW?
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