by James Parks, Oct 10, 2007

Striking UAW members are returning to their jobs at Chrysler after the union reached a tentative agreement with the automaker about six hours after the walkout. The strike began at 11 a.m. this morning after a strike deadline passed without an agreement.

UAW President Ron Gettelfinger said in a statement:

This agreement was made possible because UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company.

UAW Vice President General Holiefield, who heads the union’s Chrysler department, added:

Once again, teamwork in the leadership and solidarity in the ranks has produced an agreement that protects jobs for our communities and also protects wages, pensions, and health care for our active and retired members.

Details of the agreement are being withheld, pending ratification votes by rank-and-file UAW members at Chrysler. But published reports had indicated the two sides were stuck on the company’s demand for health care concessions. Also at issue was the union’s desire for job security pledges at U.S. factories and Chrysler’s wish to contract out some work now done by union members.

The current contract, which was set to expire Sept. 14, was indefinitely extended while the union negotiated with General Motors Corp. to reach a tentative agreement. A deal with GM was reached Sept. 26 after a two-day strike. The union had said the GM deal, which includes a new retiree health benefits scheme and job security provisions, would serve as the pattern for new agreements with Chrysler and Ford Motor Co.

This is the first contract negotiation between the UAW and Chrysler’s new owners. The private equity firm Cerberus Capital Management bought the automaker in August. Shortly afterward, Bob Nardelli, former head of Home Depot and longtime General Electric Co. executive, was named Chrysler CEO.

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