DETROIT – The United Auto Workers union said Sunday night that a settlement agreement has been reached with Chrysler LLC, Fiat SpA and the U.S. Treasury Department, The Wall Street Journal Reported.
The UAW called the deal a “concessionary agreement” that was painful, but meets the Obama administration’s tough demands.
The deal alters the agreement the UAW made with Chrysler in 2007 and amends terms related to $10 billion in future retiree health care obligations.
“We recognize this has been a long ordeal for active and retired auto workers, and a time of great uncertainty,” UAW President Ron Gettelfinger said in a release. “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.”
The government rejected Chrysler’s viability plan in February and said it could not stand on its own. The union deal means the company has cleared another major hurdle as it races toward a Thursday deadline to restructure and sign an alliance with Italy’s Fiat Group SpA.
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