In a statement today, UAW President Ron Gettelfinger said, Discussions are continuing regarding the Voluntary Employees Beneficiary Associations at all three companies.
The UAW is withholding the terms of the tentative understanding pending completion of the VEBA discussions and ratification of the agreements.
A source involved in the talks said that Chrysler LLC has reached agreement with the UAW on concessions including limiting overtime and supplemental unemployment benefits.
On the eve of filing its viability plan to the federal government, Chrysler got the UAW to move on several fronts, the source said. Instead of paying overtime for work beyond eight hours, Chrysler will pay overtime only for work beyond 40 hours during a week, the source said.
The union gave up two of the four lump-sum bonuses due workers during the four-year contract, the source said.
Supplemental unemployment benefits also have been limited. Idled workers with more than 20 years of service can collect SUB pay for 52 weeks at the traditional 72 percent of take-home pay and another 52 weeks at half pay, the source said. Workers with less than 20 years get 72 percent SUB pay for 39 weeks and half pay for an additional 39 weeks, the source said.
Those SUB provisions are all that UAW members can get now that the Jobs Bank has been eliminated. The Jobs Bank was a program that guaranteed idled workers 95 percent of pay and full benefits indefinitely if no other job could be found for them.
Chrysler and GM were required by the 2007 contract to pay up to $4 billion for the Jobs Bank and SUB pay during the four-year agreement.
The source did not have a dollar savings for the concessions. Chrysler and GM are turning in their viability plans today detailing how they are cutting costs and restructuring for long-term survival.