Chrysler to pay $8.8B to UAW VEBA fund
The United Auto Workers' Chrysler LLC contract calls for the U.S. automaker to pay $8.8 billion to a new healthcare fund, a contract summary said Monday.
The union will use the contribution to the voluntary employees' beneficiary association, or VEBA fund, to cover costs of retiree healthcare after 2010, when the fund becomes operational, the summary said.
Chrysler will also pay $1.5 billion to cover the costs of retiree health care between now and 2010, the summary said.
The contract, which local UAW officials representing 45,000 workers accepted by a voice vote Monday, also lets Chrysler hire new workers for certain "non-core" jobs at wages well below those it pays existing union employees, the document said.
New, non-core hires will earn between $14 and $16.23 an hour, compared to $28 to $32.52 an hour for current workers.
An estimated 11,000 positions will be labeled as non-core, The Detroit News reported. // Copyright 2007 by United Press International