UAW Assures Members That Chrysler Pensions Are Safe

Employee pensions are being affected adversely during these times of increased worldwide competition in the automobile industry.

So a sale of an automaker from one owner to another doesn't necessarily spark concern.

However, the sale of Chrysler from DaimlerChrysler to Cerberus, a private equity firm, did cause anxiety among United Auto Worker members. UAW president Ron Gettelfinger (pictured) and vice president General Holefield told union members that the Chrysler pension is $2 billion overfunded and that its benefits are secure. Cerberus, apparently, was committed also to providing an additional $200 million to the pension while former owner Daimler provides a conditional guarantee of $1 billion for up to five years.

Gettelfinger and Holefield also address the issue of the reduction of the hourly workforce beyond the plan cuts of 13,000 members that Chrysler had announced earlier this year. They reassured members there were no plans by Cerberus to exceed that number.