Late on Monday April 27, United Auto Workers leaders approved an agreement with Chrysler LLC that would reduce the troubled automaker's cash payments into the union retiree health-care trust in exchange for a 55% stake in the company's planned partnership with Fiat.

Additionally, the UAW agreed that Chrysler can hire as many new low-wage workers at $14 an hour as possible up to 20 percent of the work force through 2015. Veteran workers receive $28 an hour. The new hires will also receive fewer benefits.

The union's 26,000 hourly workers must approve the agreement, with voting expected to end Wednesday, April 29, one day before Chrysler is required to complete a government-mandated partnership with Fiat S.p.A. to illustrate its long-term viability and to qualify for an additional $6 billion in federal loans.

Chrysler has faced a far more precarious situation than General Motors, although both companies are under the threat of bankruptcy. Chrysler needs the union concessions, the Fiat deal, and concessions from debt holders to successfully avoid a bankruptcy that analysts say would lead to the dissolution of the company.

On Monday, April 27, General Motors announced the elimination of its Pontiac brand by 2011, the termination of an additional 23,000 jobs, and a 40% reduction in its dealership network as well as a proposed stock swap with bondholders.