UAW President Dennis Williams issued a statement to membership Monday promising better communication as the union attempts to again negotiate a new contract with Chrysler’s parent company, FCA. The UAW posted its letter to Fiat Chrysler on the union website.
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According to knowledgeable sources who spoke to the media, negotiations between the UAW and Fiat Chrysler to rework a tentative agreement rejected by union members last week have broken down, upping the odds of a strike or forcing the union to take other steps. Normally, UAW contract events before the ratification vote feature “us versus them” tones rather than a united front.
Sean McAlinden, chief economist at the Center for Automotive Research, said a nationwide strike could cost the company $1 billion in revenue and $40 million in operating profit per week.
A serious strike threat at one of FCA’s most critical factoriesAutomotive News reported on Tuesday that strike notices have appeared inside FCA’s Kokomo Casting Plant, in Kokomo, Indiana.
Even if the UAW does walk out Wednesday night, that doesn’t necessarily mean there will be a long strike. Confusion over proposed changes to the union healthcare plans also undercut support, local leaders and union members said. New hires are paid at the Tier 2 level, significantly below the Tier 1 wage.
“(Fiat Chrysler) confirms that it has received strike notification from the UAW”, the Auburn Hills, Mich. automaker said in a statement Tuesday. The union had set a Sunday deadline, threatening to interrupt operations due to a contract disagreement that reportedly focused on safety provisions, seniority and other issues.
“[I] viewed it as a fair agreement and thought it was more than Fiat Chrysler would give, they are not in the strongest financial position”.
Last week workers overwhelmingly rejected a tentative agreement.
A national walkout or strike would threaten to quickly destabilize Fiat Chrysler, which has been profitable in recent years, but is the weakest company of the Detroit Three.
Speed-up, reduced break time, no sick days, and alternative work schedules that eliminate over time pay exacerbate stress. They were extended before their scheduled expiration on September 14. The terms of the bailout barred UAW from taking punitive action over labor grievances against automakers General Motors and Fiat Chrysler, but that stipulation was lifted this year.
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“Understand and manage expectations from the get-go”, she advised, pointing to the UAW’s failure to effectively communicate with its membership.
