Chrysler Group LLC said on Friday it will pay its hourly workers represented by the UAW union the second half of a $3,500 ratification bonus earlier that required by a labor agreement.
Chrysler said the early payment, which will be made on December 21, is an acknowledgement of the workers’ dedication as the carmaker’s sales have risen. Chrysler said it will bypass the financial threshold outlined in the labor agreement reached with the United Auto Workers in October 2011 that would not have made the payment possible until the first quarter of 2013.
“This waiver of the four-quarter requirement is made in recognition of the tremendous contribution you have all made to the performance of our facilities and to the revival of Chrysler,” Fiat and Chrysler CEO Sergio Marchionne said in a letter to employees.
According to the agreement, UAW members were to receive the bonus in two equal payments: the first upon ratification followed by the second payment if certain financial goals were met for four consecutive quarters. Chrysler announced that about 26,200 hourly workers represented by the UAW are eligible for the payment. The payment will add to the $500 quality-related bonus that will be paid on December 7.