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Chrysler Workers Say Yes to New Contract

Members of the United Auto Workers union approved Saturday a four-year contract with Chrysler LLC, shrugging off significant dissent from some workers.

Union representatives said 56 percent of production workers and 51 percent of skilled trades workers voted for the agreement.

Clerical workers and engineers voted in favor of the pact in greater numbers.

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Under the new contract, some 45,000 active workers are covered along with 55,000 retirees and 23,000 surviving spouses.

One point of contention is a provision pays $14 an hour to about 11,000 workers considered non-core while assembly workers make a starting wage of $28.75 per hour.

The deal was thought uncertain earlier this week when locals in Kokomo, Ind., voted it down. But workers at four Michigan assembly and stamping plants in Sterling Heights and Warren had a strong turnout and voted largely in favor. The Sterling Heights and Warren votes pushed the favorable vote ahead.

The contract expires Sept. 14, 2011.

UAW and Chrysler negotiators reached an agreement Oct. 10, after a six-hour strike. The deal came the same day the union announced that General Motors Corp. workers had approved a similar contract.

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Industry analysts believe the contract will make the company more competitive with Japanese automakers who lead in sales.

From NPR reports and The Associated Press

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