Fiat Chrsyler Union Workers Given More Time To Review Proposed Deal

Aaron Cole
by Aaron Cole

United Auto Workers at Fiat Chrysler Automobiles facilities will vote next week on a newly proposed contract to cover 40,000 workers, the Wall Street Journal reported.

Workers will have until Oct. 20 to review the proposed deal, which was reached last week before a threatened strike. According to the report, workers will vote on the deal Oct. 20-21. Roughly 65 percent of workers reportedly voted down the first deal between the automaker and the UAW because of concerns over its tiered pay structure, health care co-op and lack of communication from union leadership.

The Wall Street Journal reported that the health care co-op was scrapped in the second deal, and that lower-paid, second tier workers could eventually reach $29 per hour after eight years. The contract also proposes two raises during the terms of the four-year deal. Union leaders have taken to social media to post details about the deal in an effort to communicate with membership.

On its website, the UAW highlights terms of the new contract, which include a $4,000 ratification bonus for veteran, Tier 1 workers and $3,000 for Tier 2 workers.

Critics have said that retaining the tiered-pay system between workers isn’t enough and that the proposed contract didn’t address capping hired workers in the lower tiers. Union negotiators on the UAW website said the proposed deal reflects a balance between job security and wages:

The biggest challenge for your bargaining committee was the wage gap between new hire and traditional employees. They took a thoughtful and strategic approach to addressing this inequity and found a solution that closes the gap over time in a way that allows the company to continue investing in our plants, develop new product and keep our jobs secure. Figuring out how to balance these competing demands is one of our responsibilities as your bargaining representative. Not considering the give and take between job security, and good pay and benefit is irresponsible.

Its unclear how much of the UAW’s contract will be included in its negotiations with Ford and General Motors. Commenters on the union’s Facebook page expressed dissatisfaction with the tiered pay system staying in the FCA deal:

Your promises of ENDING 2 TIER have fallen short! Bring anything less to the ford workers will fall flat.

Roughly 45 percent of FCA workers are Tier 2 workers, which is proportionately higher than Ford and GM.


Aaron Cole
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  • SCE to AUX SCE to AUX on Oct 12, 2015

    They should have offered the higher signing bonus to the Tier 2 workers, as a token of their sincerity to eventually eliminate the inequity.

    • Lorenzo Lorenzo on Oct 12, 2015

      But they're not proposing to end the tier system. They'll just pay tier 2 $29/hour in the eighth year of the FOUR year contract! Transmitting the details of the contract isn't enough. The UAW has to send people to every local and tell them outright that FCA can't afford any more and their jobs are in danger. It seems the months of sales increases have convinced workers that FCA is making money, when it's low margin income is being used for making payments on billions in long term debt. In truth, the company has little money for new product, much less pay raises, and if Sergio can't find a merger partner/buyer, he'll have to break up the company, spinning off the best assets to the stockholders, with the rest, including debt to bondholders, going into liquidation bankruptcy.

  • Drzhivago138 Drzhivago138 on Oct 12, 2015

    Where, exactly, can I buy a Chrsyler? Is it right down the street from my Cehvrolet dealer, or next to the Frod dealer?

    • See 5 previous
    • DubTee1480 DubTee1480 on Oct 12, 2015

      @Lorenzo nice

  • Master Baiter I told my wife that rather than buying my 13YO son a car when he turns 16, we'd be better off just having him take Lyft everywhere he needs to go. She laughed off the idea, but between the cost of insurance and an extra vehicle, I'd wager that Lyft would be a cheaper option, and safer for the kid as well.
  • Master Baiter Toyota and Honda have sufficient brand equity and manufacturing expertise that they could switch to producing EVs if and when they determine it's necessary based on market realities. If you know how to build cars, then designing one around an EV drive train is trivial for a company the size of Toyota or Honda. By waiting it out, these companies can take advantage of supply chains being developed around batteries and electric motors, while avoiding short term losses like Ford is experiencing. Regarding hybrids, personally I don't do enough city driving to warrant the expense and complexity of a system essentially designed to recover braking energy.
  • Urlik You missed the point. The Feds haven’t changed child labor laws so it is still illegal under Federal law. No state has changed their law so that it goes against a Federal child labor hazardous order like working in a slaughter house either.
  • Plaincraig 1975 Mercury Cougar with the 460 four barrel. My dad bought it new and removed all the pollution control stuff and did a lot of upgrades to the engine (450hp). I got to use it from 1986 to 1991 when I got my Eclipse GSX. The payments and insurance for a 3000GT were going to be too much. No tickets no accidents so far in my many years and miles.My sister learned on a 76 LTD with the 350 two barrel then a Ford Escort but she has tickets (speeding but she has contacts so they get dismissed or fine and no points) and accidents (none her fault)
  • Namesakeone If I were the parent of a teenage daughter, I would want her in an H1 Hummer. It would be big enough to protect her in a crash, too big for her to afford the fuel (and thus keep her home), big enough to intimidate her in a parallel-parking situation (and thus keep her home), and the transmission tunnel would prevent backseat sex.If I were the parent of a teenage son, I would want him to have, for his first wheeled transportation...a ride-on lawnmower. For obvious reasons.
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