The UAW has agreed not to strike the company that its health care fund will own.
According to documents filed last week in U.S. Bankruptcy Court in New York, the UAW will not strike Chrysler before September 2015 as part of a broader agreement to extend its current contract.
The agreement, approved April 29, extends the UAW's 2007 Chrysler contract to Sept. 14, 2011. From that date until Sept. 14, 2015, any changes to labor agreements would be determined by binding arbitration.
Chrysler filed for Chapter 11 reorganization on April 30 and seeks to sell its valuable assets to a new automaker run by Fiat.
According to court documents, the UAW agreed to accept $4.59 billion in cash plus a 55 percent stake in the Chrysler-Fiat partnership in place of the $10.6 billion that Chrysler owes a union retiree health care fund. The Treasury Department will maintain a 10 percent stake in the new Chrysler.
The UAW's health care fund, or Voluntary Employees' Beneficiary Association, will nominate one Chrysler board member approved by the UAW, the contract says. Independent directors will vote the VEBA's Chrysler shares.