Major Job Security Gains

Moratorium on Outsourcing

The company has agreed to a moratorium on outsourcing for core manufacturing jobs and non-core operations. The parties have identified non-core product and process work totaling 8,000 jobs that will be retained through the moratorium on outsourcing, through the life of the agreement. Detroit Axle, Marysville Axle, Toledo Machining, MOPAR Parts and Chrysler Transport have been identified as non-core and will be protected by this moratorium.

Within 120 days following ratification, an additioinal 3,280 manufacturing jobs will be identified by a joint committee as non-core and protected by the moratorium.

Chrysler Commits to Insourcing

In response to our bargaining committee’s demand that Chrysler take action to maintain and expand its U.S. manufacturing base, the company made commitments to insource work that will result in 1,025 new UAW Chrysler jobs. These new entry-level jobs will be allocated across facilities under the national agreement. In addition, more than 1,100 jobs related to non-core product work will be evaluated for insourcing.

Job Security Program Improved

Your negotiating team resisted efforts by the corporation to eliminate the programs which protect our job and income security. Instead UAW bargainers made substantial improvements. The Employment Security System (ESS) benchmarks have been eliminated and all seniority workers are covered as of the effective date of the proposed agreement.

Changes make it possible for new entry-level employees to become traditional employees to fill vacancies.

Allowable reasons for layoff remain the same, as well as the 48-week maximum layoff period.

Enhanced VTEP for New Process Gear

During these negotiations, the company agreed to replace the contractual Voluntary Termination of Employment Program (VTEP) offering as agreed to on Sept. 8, 2003 with an enhanced payment of $100,000 and basic health care coverage for six months. The enhanced VTEP will be offered to eligible UAW New Process Gear employees in both the hourly and salaried bargaining units.

All other provisions of the Sept. 8, 2003, letter remain in effect.

Attrition Replacement

In the proposed program, attrition replacement covers 100 percent of the membership, with only two exceptions. Attrition replacement will be delayed during a market driven-related layoff. And when a plant has workers on protected status, attrition replacement will be handled in accordance with Letter 135 of the National Agreement.

The numbers of jobs outsourced minus the number of jobs insourced will be treated as attrition on a unit basis.

When a traditional worker quits, dies or is placed on salary, he or she will be replaced as soon as possible, but in no event longer than 30 days. Under the proposed job security program, production employees will be replaced as follows:

• Recalling in plant seniority order employees from the combined plant recall list which consists of layoff and job bank populations; return to home plant applicants; and closed plant employees.

• Recall by corporate service date the highest seniority volunteer on layoff or protected status from inside the labor market area.

• Place out-of-labor-market-area volunteers.

• Transition an entry-level employee from inside the facility to become a traditional employee.

• Hire a new entry-level employee. An entry-level employee who becomes a traditional employee will be covered by this memorandum.

Skilled-trades workers will be replaced as follows:

• Recall by trade and in-plant seniority order employees from the combined plant recall list which consists of laid-off and job bank employees; return to home plant applicants, or closed plant employees.

• Place out-of-labor-market-area volunteers.

• Recall by trade and the highest skilled-trades seniority volunteer on layoff or on protected status inside the labor market area, then volunteers outside the labor market area.

• Transfer a production worker with skilled-trades qualifications into the trade, or place an apprentice.

• Hire a new skilled-trades worker. Issues arising from implementation of this provision will be referred to the national Job Security Operational Effectiveness and Sourcing Committee for resolution.

Enhanced Opportunities for Insourcing

During these negotiations, the UAW worked to improve the ability of UAW Chrysler local unions to develop competitive business plans to insource work to their facilities.

The company committed to several specific steps to work together with the union to identify insourcing opportunities for UAW Chrysler workers including:

• Local JSOES Committees will now include Office, Clerical and Engineering Unit Chairs.

• An enhanced exchange of information, including agreement to provide all relevant financial and cost data used to develop the cost of performing work in-house instead of outsourcing.

• Electronic exchange of the “work similar” list three times a year, to identify work similar to work already being done in UAW Chrysler facilities. It will now include yearly volumes and the plants supplied.

• Union involvement at the earliest possible stage of sourcing decision, such as when a “Make/Buy” study is initially requested.

• Providing greater opportunity for the union to make an alternative business case for keeping work in house when jobs that were temporarily offloaded are subsequently considered for permanent outsourcing.

• Meetings between union and company representatives to expedite resolution of sourcing-related problems.

Access to Financial Data

To assist UAW efforts to prevent outsourcing as well as retaining and in-sourcing work, UAW negotiators won enhanced access to financial data on sourcing decisions. The company has agreed to provide Local and International Union representatives with Net Present Value (NPV) financial data used by the company for Make/Buy business case analysis.

Additionally, the local JSOES Committees will be provided an overview on how the Make/Buy business case is developed. The parties will begin designing such training within nine months of ratification.

With this enhanced information and training, the union will have additional tools to make the business case arguments for having work performed in house by UAW members.

Return to Home Plant

Employees seeking to return to their home plant no longer have to file multiple applications, regardless of subsequent transfers. If an opening in an eligible worker’s home plant becomes available, he or she will be transferred as expeditiously as possible, based on their original application.

Impact of Technology to be Reviewed

Under the terms of the proposed agreement, an annual meeting between union and company representatives has been established to review the impact of technology on UAW members.

Protected Status Employees

A protected status employee will remain in protected status for no more than two years if there are job openings in the corporation. If during the two-year period no jobs are available and workers remain on protected status, the national parties will develop a plan specific to each location. This may include mandatory placement.

Protected Status Employee Pay Options

A protected status employee assigned to a plant job will receive his or her regular straight-time hourly rate. Protected status workers not assigned to a plant job have the option of receiving 85 percent of straight-time hourly rate and not report to a designated location. Protected status workers can remain in the plant or report to a designated location and receive 100 percent of their straight-time hourly rate.

In certain circumstances the national parties may agree that placement on protected status at the 85 percent rate is mandatory.

Special Attrition Program

Special attrition programs will be offered in accordance with previous attrition programs to facilitate job placement.

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