UAW members at Fiat Chrysler’s USA factories voted 77 percent in favor of the agreement, the union said.
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Fiat Chrysler continued to struggle for several years after the recession ended in June 2009 and today has the highest number of tier-two workers of the U.S. Big Three.
Going forward, the new agreement will have far-reaching implications not only for Fiat Chrysler – but also for Ford Motor Company and General Motors, who are also engaged in talks with UAW for a new labor deal.
The two-tier wage system has been in place since the firm emerged from bankruptcy in 2009, during the global financial crisis that slashed auto sales.
Covering 40,000 workers, about 45% of which are considered entry-level, the Fiat Chrysler pact gives pay raises and signing bonuses of $3,000 and $4,000. Cathy Clegg, GM vice president of manufacturing and labor relations, will lead the management team, while Cindy Estrada, vice president of the UAW’s GM department, will be on the union’s side with UAW President Dennis Williams.
AstraZeneca PLC (NYSE:AZN) [Trend Analysis] stock closed at $30.93 in last session with the total traded volume of 2.95 Million. Also, 84 percent of production workers at a metal stamping plant in Sterling Heights, Michigan, north of Detroit also voted yes. Ford will release its third-quarter earnings on Tuesday. If the negotiators agree soon, and the workers approve the contract with a minimum of strife, that could be a win for both sides.
Fiat Chrysler Automobiles N.V.
Ford seeks an accord that “enables us to continue providing jobs and investment here in the USA and that ensures a prosperous future” for the company and its workers, spokeswoman Kristina Adamski said in a statement.
Like the previous agreement, the new contract promises the first raises in nine years for the highest-paid workers, who now start at $28 per hour. The move gradually closes a pay gap that now has newer hires earning about $9-an-hour less than more senior workers for doing the same job.
The union will turn its attention to Ford and General Motors.
Voting is winding down for tens of thousands of Fiat Chrysler workers around the country, including thousands right here in the Toledo area.
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