By on September 30, 2015

UAW Wages

it’s probably dead.

The Detroit Free Press reported that the deal appears to be mathematically impossible after several large locals voted down the proposed contract this week.

The margins of defeat have been growing since Mopar and axle operators workers voted down the proposal by just over 50 percent and 65 percent last week, according to reports. Workers in Toledo, which builds the Jeep Wrangler and may lose the Cherokee to Sterling Heights, Michigan in order to build more Wranglers, voted overwhelmingly against the proposal; 87 percent declined the contract according to the Free Press.

Union workers at Fiat Chrysler Automobiles plants say that the contract, which does not specify production sites or moving plans — such as shifting truck and car production — doesn’t assuage concerns that more jobs will be lost to Mexico.

According to reports, workers at FCA plants have voiced concerns that the proposed UAW contract didn’t provide a clear path for lower-paid, entry workers to make as much as veteran Tier 1 workers. Newly hired Tier 2 workers, who make on average $9 less per hour than Tier 1 employees, comprise about 45 percent of FCA’s hourly workforce.

UAW President Dennis Williams dismissed concerns that the contract didn’t make clear a path to higher wages, saying that workers could apply for higher paying jobs within FCA.

The workers have also expressed concerns that the health care cooperative, created as a way to control costs, is lacking clear details.

Voting on the contract will continue Wednesday, but it’s unclear what may happen when workers turn down the proposal. Negotiators for the union and FCA could work again on a new deal, workers may strike or limit future work at FCA’s plants.

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10 Comments on “About That United Auto Workers Contract With Fiat Chrysler Automobiles...”


  • avatar
    CJinSD

    There’s nothing like a strike to convince a manufacturer to keep their plants in closed shop states.

  • avatar

    Tier One for Everyone or walk.

  • avatar
    highdesertcat

    In order to resolve these differences once and for all, the UAW should strike Ford, GM and Fiatsler, all at the same time. Bring those car makers to their knees. Reduce output to zero.

    What results will be the new standard, the new status quo for at least 20 years.

    We gotta quit pussyfootin’ around. Why prolong the agony? Let’s get it over with already.

    Let both sides play hard ball and see what shakes out.

    • 0 avatar
      05lgt

      It can’t work. Your idea for “all three” falls apart because to the consumer, there isn’t an all three anymore. Toyota, Honda, Hyundai, etc. will be the winners short term and long. Marketing and engineering got the memo that it’s not a 3 player game anymore, it’s really past time management and labor read the tea leaves too.

    • 0 avatar
      thornmark

      The New Deal legislation that gave the UAW monopoly power also gave them the power to destroy. And they did.

      Why would the UAW strike all three at once? Its ultimate power is to pick the weakest of the surviving “domestic” companies and strike it until it complies knowing that the working UAW members will provide strike funds. Then they move on to the next.

      To strike all three at once would give the 3 companies more power to resist, not less – they could easily outlast the UAW and gain widespread public support against the union which is already unpopular w/ the public.

      Labor laws should be reformed along Japanese lines where unions are company unions that work with the companies that employ them to ensure a future for both. In the early 1960’s Studebaker essentially begged the UAW for some relief, explaining w/ its lesser scale they could not afford to pay what the Big 3 three could. The UAW saw no reason to help the struggling company as they saw the “Big 3” absorbing the Studebaker share of the market. That labor strategy worked until the market share of dying UAW companies was absorbed not by UAW organized companies but by first imports and then transplants.

      The current US system was designed to maximize union power but over the long term has worked to the detriment of the industry, its workers and the US as a nation. And it’s not just autos, look at what happened to the steel industry and others.

    • 0 avatar
      highdesertcat

      Yeah it is unlikely that even the UAW would strike all three at the same time, but the end outcome would either be glorious or disastrous.

      Meanwhile, back at the ranch, business as usual with the UAW. Same schit, different day.

      All that f’n drama.

  • avatar
    RideHeight

    It’d be nice to hear from someone with skin in this game instead of the usual barking-loungers.

  • avatar
    Charliej

    Fiat has plenty of underutilized plants outside the US, if the UAW decides to strike. So do Ford and GM. The UAW may think that they can dictate terms to the automakers, but those days are over. It would take some time, effort and money to move production out of the UAW’s reach, but it can be done.

    • 0 avatar
      highdesertcat

      I agree. And I hope that it WILL actually be dome. The UAW has been disastrous for the US auto industry since time immemorial.

      The UAW isn’t happy that Americans are provided decent paying jobs by the transplants in the South.

      The UAW’s never-ending insidious agenda of unionizing auto plants in RTW states is a recipe for disaster by bringing the same Detroit 3 bankrupting scenario to otherwise profitable employers.

      All this drama for union dues.

      Let’s move UAW jobs to non-union locations, inside and outside the US. Whatever it takes to maximize shareholder profits.


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