Late last night, the United Auto Workers union chiefs unanimously voted to approve the concessions their workers would have to make in the proposed Chrysler-Fiat partnership, though members will cast their votes this week. The concessions mean pay cuts across the board, but they would give the UAW a 55 percent share in the merged automaker, as well as a board seat for the retiree health care trust.
With Fiat eventually owning 35 percent of Chrysler, the remaining 10 percent would be split between the U.S. government and the automaker’s creditors, mostly banks and hedge funds, in the long-term.
Voting should be finished across the country by tomorrow and most analysts agree that the union members will ratify
The agreements allow for Chrysler to hire as many Tier 2 workers as possible before 2015. Tier 2 workers start at $14 per hour and received fewer benefits, compared to the $28 per hour that tenured workers make. Previously, Chrysler had been capped at 20 percent Tier 2 workers.
