CAW Finally Reaches Agreement With Chrysler

This article was last updated on April 16, 2022

Canada: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…

It was declared on Wednesday morning that Chrysler Group, last of the Detroit Three, has reached a contemporary settlement with The Canadian Auto Workers union. According to the sources this agreement is almost of the same nature as of its Detroit rivals. Other two of the Detroit Three, Ford and General Motors, have already concluded their negotiations with the union. Leaders of the CAW union labeled the dialogue with Chrysler to be the most difficult one among the three auto-maker giants.

Last week Chrysler had shown its concerns regarding the developing pattern of agreements with other two rivals. Chrysler is often considered as the smallest of the Detroit Three. Chrysler stated previously that it did not like the idea of reinstating the increment in cost-of-living of past three months of the four-year deal. Whereas, the union expressed its unease on the topic of timing and the size of $9,000 lump-sum payment mentioned in the contract. Despite all the differences, CAW and Chrysler has official reached an agreement on common grounds. The bargaining between the two took a positive turn on Tuesday evening.

Now the new terms of the agreements between all three companies and CAW union implies that newly employed persons will receive $20 an hour in wages, reduced from the old $24. It has also been agreed that workers will have to face a wage freeze throughout the next four years, as the cost-of-living increases get suspended until June 2016. To substitute that, however, the contract states a new signing bonus of $3,000 in the first year, along with an estimated $2,000 payment in following three years.