UAW Reaches Labor Deal With Big Three

The United Auto Workers says it has reached a tentative deal to modify its 2007 labor contracts with Chrysler LLC, General Motors Corp. and Ford Motor Co.

The deals come after intense negotiations over the weekend and are required for Chrysler and GM to secure additional funding from the U.S. government. The two auto makers submitted their restructuring plans to Washington late today, a step also required in order to free up federal financial aid.

The UAW does not detail the changes to the contracts in a brief statement issued today, saying it would withhold the specifics until an agreement surrounding funding for the Voluntary Employee Beneficiary Associations agreed to in the 2007 are ironed out.

Chrysler says the adjustments include changes in compensation and work rules.

Discussions concerning the VEBA are continuing at all three auto makers, the union says. The VEBA covers health-care funding for retired workers, and the auto makers have been pushing for a lower cash injection into the fund than agreed to in 2007.

“The changes will help these companies face the extraordinarily difficult economic climate in which they operate,” UAW President Ron Gettelfinger says in the statement. “Our vice presidents and bargaining committees are to be commended for doing the best job possible for our membership under these difficult circumstances.

“The solidarity, support and patience of our membership, active and retired, have been instrumental in helping all of us through these challenging and unprecedented times.”