For a typical member with two years in, the UAW said the agreement is worth $44,000 over four years.
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Late on Wednesday, it appeared that a provisional four-year agreement between the UAW (United Auto Workers) and Fiat Chrysler Automobiles NV is heading towards ratification, as greater than half of the votes supported the contract.
The website of the union local in Belvidere with 4,200 workers says 81 percent voted for the new deal. A few of the workers we spoke with think the changes between the first and second offer were not enough. It was unclear Thursday whether the union would pick one company to focus on or try to negotiate with both.
A deal costing more than $2 billion would be a reversal for Detroit, where bankruptcy and concessions from the union have driven labor costs down since 2007. The new agreement with FCA essentially phases it out.
The new deal takes the tier two workers up to $28 an hour after seven years with the company, putting them on a more even footing with veterans. On March 16, 2015 The shares registered one year high of $17.08 and one year low was seen on October 27, 2014 at $9.14.
The new contract also eliminated a proposed healthcare pool of workers of all three Detroit automakers that many workers found confusing. The deal ends the threat of what would have been America’s largest labor strike in four years. A similar deal with GM may be less expensive. Senior workers get their first raises in nine years.
Still, the UAW has said that it wants to eliminate the two-tier wage system in the US auto industry, and it’s pushing hard for that in contract talks with GM and Ford. But Williams and his deputies have clearly acknowledged that this time around, the contracts may differ more than usual because each automaker’s situation is different. As taking short look on the firm profit margin was recorded 4.60%, and operating margin was recorded 18.20%.
About 45 per cent of FCA’s USA hourly workers are lower-tiered workers who now make wages as low as $15.78 per hour. GM is expected to push to keep labor costs in check to cushion the blow from market downturns and remain competitive with Toyota Motor Corp. and other rivals.
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Negotiations at GM will bring high ranking women to both sides of the table. GM (and Ford) shareholders should stay tuned.
