Results from 16 of 37 union locals at FCA plants in the USA, representing about 29,000 of 40,000 workers, were disclosed to reporters on Wednesday night.
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Under the current contract, those less senior workers earn between $17 to $24 an hour, while veteran autoworkers earn at least $28 an hour and get a pension as well as retiree health benefits.
At a media event in July, UAW President Dennis Williams said he wasn’t “hung up on caps” as long as workers can get a middle-class wage.
The members have voted to ratify a new four-year collective bargaining agreement with FCA by a 77% majority. The newsletter also states, “No future product has yet been identified beyond the product life cycle” at the Connor plant.
That was apparently a cost that CEO Sergio Marchionne was willing to pay for labor peace.
The new agreement gives raises to all workers and eliminates the two tiers over eight years. The new agreement is a four-year labor deal.
While the agreement the UAW reached with Fiat Chrysler provides a long-term pathway to the top wage it also effectively eliminates a cap on the number of entry-level workers the automaker can hire and renames them “in progression employees”. They voted against it because it didnt ensure sufficient job security, nor did it address a controversial two-tier wage system that pays workers hired after 2007 up to 45% less than those hired before.
Chrysler and General Motors went bankrupt in 2009, leading to Chrysler’s eventual merger with Italy’s Fiat in 2014. Recently, the union announced to move to GM for negotiating on labor agreement.
Based on the same formula, which probably will be part of the upcoming contract talks, the profit-sharing payment would be based on the $8.3 billion number, plus whatever North American profit GM makes in the fourth quarter.
While the Fiat Chrysler deal will be the starting point for negotiations with GM and Ford, the UAW will probably seek an even more lucrative deal from them than smaller, weaker FCA.
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It just posted a record .1 billion third-quarter operating profit – a strong financial showing as low petrol prices boosted demand for its trucks and sport utility vehicles.
