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Chrysler Will Pay Rest of UAW Ratification Bonuses Early

Nov. 30 (Bloomberg) -- Chrysler Group LLC, the automaker majority owned by Fiat SpA, will pay the remainder of $3,500-per-worker bonuses that are due to hourly employees early, according to a statement today.

Chrysler will make payments of $1,750 each to its roughly 26,200 employees represented by the United Auto Workers on Dec. 21, the Auburn Hills, Michigan-based company said. The first half of the bonuses was paid after Chrysler and the Detroit-based union agreed to a national contract in October 2011.

Chief Executive Officer Sergio Marchionne is hastening the payments to workers after the Auburn Hills, Michigan-based automaker last month confirmed its forecast of about $1.5 billion in net income for the full year. Workers otherwise would not have been eligible for the second half of their ratification bonuses until 2013’s first quarter, according to the statement.

“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,” Marchionne, 60, wrote in a letter to employees.

Marchionne is also CEO of Turin, Italy-based Fiat.

To contact the reporters on this story: Craig Trudell in Southfield, Michigan, at ctrudell1@bloomberg.net;

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net

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