Chrysler Pact Returns to Parity with GM, Ford

By Ruben, George | Monthly Labor Review, July 1988 | Go to article overview

Chrysler Pact Returns to Parity with GM, Ford


Ruben, George, Monthly Labor Review


Chrysler pact returns to parity with GM, Ford

Contract uniformity returned to the domestic automobile manufacturers when Chrysler Corp. and the Auto Workers negotiated a 28-month agreement, bringing 66,000 employees up to the wage, benefit, and job security levels prevailing at General Motors Corp. (GM) and Ford Motor Co. Contract terms had been essentially identical at the three companies, but in the 1979 and subsequent settlements, Chrysler employees accepted terms providing for less wages and benefits than did Ford and GM employees to help Chrysler overcome financial difficulties. Throughout the concessionary period, union leaders vowed to return to parity, and movement toward the goal occurred in the 1982 and 1985 settlements, following Chrysler's return to profitability. Barring financial problems at any of the companies, uniformity presumably will continue, with current contracts at all three companies now expiring on September 14, 1990. (See Monthly Labor Review, November 1987, pp. 31 -33, for terms of the Ford contract and December 1987, p. 51, for the GM contract.)

Despite early indications that Chrysler and the Auto Workers would agree to a return to contract parity with GM and Ford, and the peaceful outcome of the talks, union officials criticized Chrysler for several events which occurred before and during the talks. One was Chrysler's announcement of plans to close its assembly plants in Kenosha, WI, at a cost of 5,500 jobs. In the national settlement, Chrysler agreed to additional measures to aid the displaced workers. Other controversial issues were Chrysler's announced plans to sell its 11 Acustar parts manufacturing plants (later revised, after an angry reaction by the union, to provide for retention of seven of the plants), and the size of bonuses distributed to Chrysler executives.

The new contract provides for an immediate $1,000 "early settlement bonus" (in cash or Chrysler stock), which reflected the fact that Chrysler employees, unlike Ford and GM employees, did not have a profit-sharing provision in their expiring contract. (Gm employees did not receive an annual profit-sharing distribution in 1988; Ford employees received an average of $3,700.) The Chrysler employees-who are now covered by the same profit-sharing formula as at Ford and Gm-had received $500 payments in 1988 under provisions of the old agreement which called for adoption of profit sharing either during the term of that agreement or as part of the 1988 settlement.

Like Ford and Gm employees, Chrysler employees will receive performance bonus payments in October of 1988 and 1989, each equal to 3 percent of their qualified earnings during the preceding 12 months. The provision for automatic quarterly cost-of-living pay adjustments also followed the pattern, except that a total of 15 cents will be withheld from adjustments to equalize the allowance with that for Ford and GM employees. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Chrysler Pact Returns to Parity with GM, Ford
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.