BUSINESS

Chrysler, United Auto Workers Reach Tentative Labor Deal

10/12/2011 08:15 am ET | Updated Dec 12, 2011

DETROIT - The United Auto Workers and Chrysler Group LLC reached a tentative four-year labor contract for the No. 3 U.S. automaker's 26,000 hourly production workers, the UAW said on Wednesday.

This is the first labor contract for Chrysler since its 2009 bankruptcy and federally funded bailout.

The agreement follows agreements between the UAW and Chrysler's Detroit rivals General Motors Co and Ford Motor Co.

The GM contract was ratified by workers late last month and Ford workers are in the process of voting that ends October 18.

In a press statement, UAW President Bob King said the pact will create 2,100 U.S. jobs and commit Chrysler to $4.5 billion investment in vehicle production.

Further details of the agreement will be issued later on Wednesday by the UAW. The Chrysler contract was not expected by labor analysts to be as generous for workers as those at GM and Ford, due to the automaker's relative poor financial position.

Chrysler Group is managed and majority=owned by Italy's Fiat SpA.

(Reporting by Bernie Woodall; Editing by Derek Caney)

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