Newly-Announced Chrysler/UAW Agreement Aims to Benefit VEBA Trust
In order to supplement the Chrysler Group’s existing collective bargaining agreement, the Detroit automaker has come to an agreement with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) on a memorandum of understanding.
The memorandum with the UAW will require Chrysler to provide an additional $700 million contribution to the voluntary employees’ beneficiary association (VEBA) trust. The payments will be made in four annual installments.
According to Chrysler’s press release, “in consideration for these contributions, the UAW will agree to certain commitments to continue to support the industrial operations at Chrysler Group and the further implementation of the Fiat-Chrysler alliance…”
That support from the UAW will assist in the roll-out of Fiat-Chrysler World Class Manufacturing programs, as well as actively participating in benchmarking efforts associated with implementing those programs.
What do you think about the Chrysler/UAW agreement that will eventually result in a contribution of $700 million?
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