By on September 17, 2015

UAW Wages

United Auto Workers members working for Fiat Chrysler Automobiles could get a $3,000 bonus to ratify its newest contract in the next few days, Bloomberg reported.

The bonus will be on top of raises for the workers, something that the UAW stressed in its negotiations with the automaker. Tier 1, veteran workers, could see pay raises to bump up hourly wages to $30 an hour. Lower-paid, newly hired Tier 2 workers could get pay raises up to $25 hourly after eight years of employment.

The newest contract with the UAW could eventually end the tiered-pay system. Roughly 45 percent of union workers at FCA were hired as Tier 2 workers.

The bonus paid for ratifying the contract would be lower than previous bonuses. In 2011, UAW workers at FCA were paid $3,500 to ratify their contracts.

Negotiations between the UAW, Ford and General Motors should resume after the union reached a deal with FCA.

According to Bloomberg, the UAW may reach for higher, more lucrative raises for Ford and GM workers after securing raises for FCA workers. The victory could go a long way in helping the union gain a foothold in manufacturing facilities in the U.S. South.

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8 Comments on “Fiat Chrysler Union Workers May Get $3,000 To Approve Contract...”


  • avatar
    RideHeight

    “after eight years of employment”

    Isn’t that rather optimistic these days for an American clock-puncher?

    • 0 avatar
      cdotson

      I would be similarly skeptical were it not for the fact that I cannot think of another industry or location in the USA where someone with a high-school diploma could make nearly the same wage on an hourly basis.

      I have a BS in Mechanical Engineering and while I’m still in my mid-30s my longest term of employment has been 7 years. That was extended by virtue of the great recession making it riskier to move and harder to find higher pay when moving. Engineers typically make more money by jumping ship periodically. An assembly-line nut-turner can’t expect the same career trajectory.

      • 0 avatar
        RideHeight

        Right, barring the odd fracking boom there’s no mobility for those with only a HS diploma. Precious little for those with advanced but wrong degrees.

        I just thought that 8 years of unperturbed employment in what’s left of our unskilled manufacturing sector seems increasingly unlikely in the present maelstrom of offshoring.

  • avatar
    VCplayer

    I feel like FCA gave away a lot in these negotiations. Are they still going to be competitive with the non-union manufacturers?

    I should clarify as well, I’m asking in earnest, I actually don’t know.

  • avatar
    SoCalMikester

    basically an extra check equivalent to a retroactive $1.50/hr “raise”

  • avatar
    mikey

    $3000…one shot, lump sum, is not a 1.50/hr “raise”

  • avatar
    dantes_inferno

    > Fiat Chrysler Union Workers May Get $3,000 To Approve Contract

    A bribe by any other name.

  • avatar
    SCE to AUX

    One man’s bribe is another man’s signing bonus.

    Seems like a fair deal to me. This way, they don’t have a huge disruption by simply eliminating Two-Tier, but it puts people on a path to equity in the future.

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