Chrysler Creating New jobs

[Chelsea Nelson]

On foxnews.com I read an article detailed that on October 12, 2011 Chrysler agreed on a new 4 year contract that will create 2,100 new jobs.  In accordance with this contract Chrysler will also invest $4.5 billion in its plants under the deal which covers 26,000 workers.  "This agreement is the latest in a remarkable turnaround for Chrysler," UAW Vice President General Holiefield said in a statement." (Article)  GM and Ford have both made billions of dollars in the last year while Chrysler has lost money.  Chrysler has been struggling to come to an agreement with the union because of their disagreement on wages.  Chrysler has been majority-owned by the Italian car company Fiat since July.  Since the initial bailout where Fiat had 20% staked in Chrysler whereas now they have 50%.  Chrysler expects to earn $200 to $500 million this year and if this occurs this will be Chrysler's first profitable year since 2005.  

  In my opinion, Chrysler is only running on the prospect of making money.  While this deal is projected to earn Chrysler a profitable outcome monetarily my concern is the people that will be hired and the job reliability that they will have.  Creating 2,100 new jobs is great but people can't live off of "hopeful" money.  Maybe I don't fully grasp the issue but I do know that being able to rely on a steady paycheck is something that everyone would like to have.  Jobs are far and in between so it is a great business plan to generate more jobs but like I said before I think that those jobs have to be legitimate.  

This issues that the Union was having in reference to starting earnings and raises after that and I think that that is a licensed concern but the Union also has to understand that in order to give raises Chrysler has to get back on its feet.  Chrysler made $116 million in the first quarter and lost $370 million in the second quarter due to mostly charges accrued from refinancing debt charges.  This is not the best conditions for a company to be handing our raises right and left. While I feel for the employees of Chrysler who have been in a financial stand still since 2005, stuff happens and time is what Chrysler needs to attain the kind of money it needs to provide for its employees.  The article I read also included a comparison of Chrysler and their competitors, GM and Ford who have made, as I said before, billions of dollars this last year.  

GM who also took a government bailout seems to be doing much better that Chrysler and hopefully this contract helps Chrysler rebuild what they used to have. Our economy could definitely use 2,100 new jobs and I hope that the contract provides stable well paid jobs for people in need of jobs. GM and Ford signed contracts recently that were similiar to that of what Chrysler will sign after Chrysler's workers have ratified it.  That being said hopefully the success seen in Ford and GM will bee seen in Chrysler.  Chrysler seems to be making headway towards recovering from the government bailout that they took and the bankruptcy that they chose to file but honestly only time will tell if their new contract will solve any of the problems they are facing. 

Here is where the article that I read is found:

http:/http://www.foxnews.com/us/2011/10/12/chrysler-united-auto-wor...