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16 September, 1999After two days of round-the-clock negotiations, the IMF-affiliated United Autoworkers (UAW) and DaimlerChrysler have reached a tentative agreement.
USA: UAW President Stephen P. Yokich and DaimlerChrysler President Tom Stallkamp issued a joint statement yesterday, September 16, announcing union negotiators had reached a tentative agreement with the company. The new contract would cover more than 70,000 hourly and salaried workers at DaimlerChrysler facilities in the United States.
Thus, DaimlerChrysler, which is negotiating its first contract with the UAW since DaimlerBenz merged with Chrysler last year, is the first of the USA's "Big Three" auto and truck makers to strike a tentative deal in this year's labour negotiations. More than likely, if this agreement is ratified by the DaimlerChrysler membership, it will serve as a pattern setter for deals at GM, with 220,000 workers, and Ford, with over 100,000, where talks are continuing.
Details of this new agreement are being withheld pending ratification votes by the UAW DaimlerChrysler membership, to begin next week and take about 10 days. However, it is believed the contract will run for four years, a year longer than the previous one, which expired on September 14, and include annual wage increases of 3% and a lump-sum payment of 3% in the final year. There have also been suggestions that a clause preventing any spin-off of parts-making operations is part of the deal. With 60% of its profits coming out of U.S. factories, DaimlerChrysler has been anxious to settle the negotiations.
Rank-and-file voting on ratification will begin next week and it is expected the process will take about 10 days.
For additional information, see associated link at top left or IMF NewsBriefs No. 13, 1999.
Thus, DaimlerChrysler, which is negotiating its first contract with the UAW since DaimlerBenz merged with Chrysler last year, is the first of the USA's "Big Three" auto and truck makers to strike a tentative deal in this year's labour negotiations. More than likely, if this agreement is ratified by the DaimlerChrysler membership, it will serve as a pattern setter for deals at GM, with 220,000 workers, and Ford, with over 100,000, where talks are continuing.
Details of this new agreement are being withheld pending ratification votes by the UAW DaimlerChrysler membership, to begin next week and take about 10 days. However, it is believed the contract will run for four years, a year longer than the previous one, which expired on September 14, and include annual wage increases of 3% and a lump-sum payment of 3% in the final year. There have also been suggestions that a clause preventing any spin-off of parts-making operations is part of the deal. With 60% of its profits coming out of U.S. factories, DaimlerChrysler has been anxious to settle the negotiations.
Rank-and-file voting on ratification will begin next week and it is expected the process will take about 10 days.
For additional information, see associated link at top left or IMF NewsBriefs No. 13, 1999.