Workers union agrees to arbitration only as part of settlement
14 May 2009

The UAW workers' union has agreed not to strike at Chrysler until at least September 2015.

The deal, which means any disputes will be settles through arbitration, is part of a pay-off deal in which the UAW had agreed to accept $4.59 billion (£3 billion) in cash plus a 55 per cent stake in the Chrysler-Fiat partnership in place of the $10.6 billion (£7 billion) that Chrysler owes a union retiree health care fund.

In addition, the health care fund, or Voluntary Employees' Beneficiary Association (VEBA), will nominate one Chrysler board member approved by the UAW, the contract says.

It was also agreed that all new workers Chrysler hires until 14 September 2015 can be paid entry-level wages, that benefits for new workers will be reduced and that workers face stricter attendance rules.

Chrysler also said it intends to persuade an additional 3500 workers to leave voluntarily.

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