Chrysler strike lasts six hours

The United Auto Workers (UAW) union has agreed a tentative four-year contract with Chrysler, six hours after thousands of workers went on strike.

Details of the agreement have not yet been given but the UAW said the strike would end immediately.

UAW members at 19 of the 24 US Chrysler factories walked out on Wednesday after the deadline for an agreement passed.

Among the issues involved was funding for a union-run trust that would handle healthcare bills for retired staff.

'Rewarding success'

The UAW said the outline agreement - yet to be ratified by its members - protected their wages, pensions and health care benefits.

UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company Ron Gettelfinger, UAW president

Unions had been concerned that Cerberus, Chrysler's new private equity owner, wanted to roll back existing pay deals and other benefits for 49,000 workers.

"This agreement was made possible because UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company," said UAW president Ron Gettelfinger.

Chrysler vice chairman Tom LaSorda said the accord "balanced the needs of our employees and company by providing a framework to improve our long-term manufacturing competitiveness".

It was the first time since 1985 that Chrysler workers had called a strike during contract negotiations.

The dispute follows a similar strike at GM in September, which was resolved when staff secured guarantees over working conditions.

The UAW has still to reach a settlement with Ford.

Restructuring

Loss-making Chrysler was formerly part of DaimlerChrysler - now renamed Daimler.

The German group sold a majority 80.1% stake in Chrysler to Cerberus for 7.4bn euros ($10.1bn; £5bn).

The separation comes almost a decade after the two firms merged in a $36bn deal.

Chrysler - like other US firms - has faced increasing competition from more efficient Japanese car firms.

In a bid to mitigate against losses, the group announced huge reorganisation plans in February that involved cutting 13,000 jobs.