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Chrysler wins union concessions

The United Auto Workers said Sunday that they had reached a tenative agreement over concessions in their contract with Chrysler LLC, CNN reported on Sunday.

The union said in a statement that an agreement had been made between Chrysler, Fiat, and the Treasury Department. The move represents an important step for the automanufacturer in avoiding bankruptcy.

The union said the deal includes modifications to the their 2007 collective bargaining agreement and the trust program dedicated to retiree health benefits, although they did not specify them, reported CNN.

This helps Chrysler move closer to making an alliance with Italy's Fiat Group, crucial to their survival. They had to meet the thursday deadline to gain concessions from their unions and debtholders, reported the Star Tribune.

"We commend the UAW's leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry," Al Iacobelli, Chrysler's chief labor negotiator and vice president of employee relations, said in a statement, reported CNN.

Chrysler still has two critical deals to make by the deadline, reported CNN.

CNN: http://money.cnn.com/2009/04/26/autos/chrysler/index.htm
Star Tribune: http://www.startribune.com/business/43748167.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aUac8HEaDiaMDCinchO7DU