Toledo, Dec 23, 2003 - Today, United Auto Workers Local 12 announced the ratification of a new collective bargaining agreement covering approximately 4,100 UAW-represented employees at the Chrysler Group's Toledo Jeep® manufacturing facilities.
“There's no such thing as easy negotiations, and the bargaining teams are to be commended for their work in crafting this agreement,” said UAW Regional Director Lloyd Mahaffey. “The membership of Local 12 has shown its commitment to continue doing what it does best – build outstanding vehicles in innovative ways.”
“This is a fair, balanced agreement that builds on concepts of world-class operational flexibility, which our employees at Toledo have pioneered in many cases,” said John Franciosi, Chrysler Group Senior Vice President – Employee Relations. “We want to use that flexibility to support our strategy of building new, derivative products using existing assembly capacity.”
Economic terms of the agreement are on parity with the national UAW-DaimlerChrysler collective bargaining agreement, and will remain in effect until the national agreement expires in 2007. The term of the local working agreement is for eight years, expiring in 2011, which allows for a full maturation of new and innovative operating approaches.
The local working agreement supports a business case, currently under discussion, to involve partnerships between the company, union, governments and suppliers to develop alternative flexible operating approaches for future products. These approaches may include a supplier park concept or other potential third-party approaches. The Chrysler Group is planning a significant investment in the plant to support these future initiatives.
“While a business case for new manufacturing approaches may take some time to finalize, this agreement will help the Toledo Jeep Manufacturing operations become more flexible and competitive right now,” said Franciosi. “That's what it's all about – building a more secure future in a rapidly changing time for our industry.”