Download Print April 2009 Modifications to the 2007 Agreement Chrysler LLC and the UAW agreed to modifications to the four-year 2007 Agreement, covering United States hourly and salaried bargaining unit employees including parts distribution center employees. The Agreement terminates on September 14, 2011. Wages and Other Economics COLA Recovery of current $0.99 float – effective March 2, 2009 Eliminate future quarterly increases Christmas Bonus ($600) – eliminated for the term of the agreement Performance Bonus – eliminated 2009 (4%) and 2010 (3%) payments Paid Time Off – "Day After Easter" is eliminated as a paid holiday Tuition Assistance Program – Eliminated for actives, dependents and retirees Overtime Premium – Payable only after 40 compensated hours in any work week Standardized Vacation Shutdown Period – Application of employee’s vacation entitlement reduced for designated 2-week shutdown period with no opportunity for SUB or unemployment benefits New Hire Employees (Hired on or after 10/29/2007) Eliminate annual performance bonus payments Joint Activity Funding – Reduce programs for actives and retirees Job Security Program Elimination of Protected Status Elimination of Job Security Program (i.e. Jobs Bank). Employees previously on protected status have been transferred to layoff. The parties will work collaboratively with governmental agencies to identify funding options for retraining laid-off employees. Supplemental Unemployment Benefits (SUB) Employees Hired Before October 29, 2007 - Length of SUB Regular Benefit coverage (weekly payments) for qualifying layoffs has been reduced: Less than 1 year of seniority → no entitlement 1 but less than 10 years → maximum of 26 weeks 10 but less than 20 years → maximum of 39 weeks 20 or more years → maximum of 52 weeks Employees Hired on or After October 29, 2007 - Eligibility for and duration of SUB Regular Benefits (weekly benefits) for qualifying layoffs for has been reduced: Less than 1 year of seniority → no entitlement 1 but less than 3 years of seniority → maximum of 13 weeks 3 or more years of seniority → maximum of 26 weeks Transition Assistance (TA) – Employees Hired Before October 29, 2007 The TA program is a modification of the former Guaranteed Income Stream (GIS) program. Specifically, the duration of employee benefits has been reduced as indicated below. The TA program provides weekly payments (50% of gross weekly wages) to employees who have exhausted their SUB Regular Benefits: Maximum duration of TA benefits Less than 1 year of seniority → no entitlement 1 but less than 10 years → maximum of 26 weeks 10 but less than 20 years → maximum of 39 weeks 20 or more years → maximum of 52 weeks Note - while still receiving SUB benefits, an employee may elect to opt out of the TA and instead receive a lump-sum cash payment (gross amount equal to $10,000 plus the total of the weekly TA payments to which the employee would be entitled). Employees who opt out of TA forfeit all recall rights and are severed from the Company. Job Placement Improved flexibility with respect to utilization and/or redeployment of employees Employees who decline Labor Market Area job opportunity will have layoff benefits reduced Employees who fail to respond to a notice of out of Labor Market Area job opportunity will be terminated as a voluntary quit UAW Voluntary Employee Beneficiary Association (VEBA) VEBA funding was restructured during the 2009 bankruptcy process and replaced by the existing VEBA assets, a note and an equity stake equal to 67.69% of the company The VEBA, governed by an 11-member Committee comprised of 5 UAW Members and 6 Independent, has the authority, starting on January 1, 2010 (previously 2012) to adjust retiree medical benefits so that benefit levels can be kept consistent with the assets in the VEBA Trust. Operational Provisions Operational improvements included Reduction of paid relief time Consolidation of Skilled Trades job classifications Implementation of team Leader / team Member concepts