BREAKING: UAW ratifies Chrysler contract

The members of the United Auto Workers have ratified a contract with Chrysler on the eve of the government-imposed deadline for the Auburn Hills automaker to show its viability in the long-term.

82 percent of production workers and 80 percent of skilled-trades workers voted in agreement, while 90 percent of office and clerical workers voted in favor of the agreement. 94 percent of UAW-represented Chrysler engineers also voted for approval. The agreement includes “modifications to the union’s 2007 collective bargaining agreement with Chrysler and modifications to the Voluntary Employee Beneficiary Association (VEBA) trust.”

“This has been a challenging time filled with anxiety and uncertainty for our membership,” said UAW President Ron Gettelfinger in a statement. “Our members have responded by accepting an agreement that is painful for our active and retired workers, but which helps preserve U.S. manufacturing jobs and gives Chrysler a chance to survive.”

The UAW said that the concessionary settlement agreement will take effect on May 4 and meets the requirements set by the U.S. Treasury for Chrysler to get more government loans. It said that the agreement includes commitments from Fiat to produce a new small car in one of Chrysler’s U.S. facilities (we’re guessing that would be the Fiat 500).

Click through for Chrysler’s statement.

Chrysler LLC Statement in Response to UAW Ratification of Contract

Auburn Hills, Mich., Apr 29, 2009 – Chrysler LLC Statement in Response to UAW Ratification of Contract, Attributed to Tom LaSorda, Vice Chairman and President:

“We are thankful to the Chrysler UAW members for their support in ratifying this contract, especially during these challenging times. This was a necessary step as we move forward in revitalizing this great Company. Today’s vote enables us to continue our work to meet the conditions laid out by the U. S. Treasury Department. The entire Chrysler leadership team believes in and appreciates the men and women that make up our great workforce worldwide.”

– By: Omar Rana