The National Maintenance Agreements Policy Committee approved a series of modifications to its industrial maintenance and construction contracts with Chrysler and Ford Motor Co. on June 3, a move that is expected to create hundreds of millions of dollars of savings for each company over the next two years and help boost them back to financial solvency.

Through the NMAPC, International Union leaders agreed to what amounts to a 10 percent cut on union wages on Chrysler and Ford projects. The status quo remains with General Motors, which was not part of the agreement.

In return, the two auto manufacturers agreed to utilize union contractors, working under the terms of the National Maintenance Agreements, on 100 percent of their industrial maintenance and construction projects over the next two years.

NMAPC Impartial Secretary Stephen R. Lindauer said this move is indicative of the group's commitment to building a partnership of safety, productivity, quality and strength.

"Ford and Chrysler understand the National Maintenance Agreements are the best tool they have in getting the job done on time and on budget," Lindauer said. "Similarly, the labor and management partners at the table are committed to the long-term success of their customers, and are willing to make difficult sacrifices to ensure that success."

The National Maintenance Agreements Policy Committee negotiates and administers the National Maintenance Agreements, a series of collective bargaining agreements utilized by more than 2,500 industrial contractors who employ members of 14 building trades international unions.

The modifications will affect union workers, and the contractors who employ them, in a total of 54 facilities across ten states -- Delaware, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, New York, Ohio and Wisconsin.

Michigan will see the greatest impact, with 26 facilities affected by the addendum. The modifications will expire as part of a sunset clause on June 3, 2011.