By on September 23, 2015


Parts and service workers say the recent Fiat Chrysler Automobiles-United Auto Workers contract has created an unfair, lower paying tier and are airing their uncertainty, the Detroit News reported.

Under the proposed contract, Mopar parts distribution center workers and axle operation workers top out at $22 and $22.35 respectively — less than the Tier 1 and Tier 2 pay raises up to $30 and $25 per hour respectively.

“They created a third tier,” Lamont Carr, a Local 1248 worker, told the Detroit News.

Union president Dennis Williams refuted the claim, saying the contract spelled out how the lower paid workers could move up to higher paying tiers by applying for those jobs.

“They’re not stuck. They’re not dead-end,” Williams told the Detroit News. “A tier system is when you don’t have a path. That is a tier system.”

The Mopar workers are eligible for the $3,000 ratification bonus, however. In 2011, those workers were only offered $1,750 to approve the new contract.

The contract would narrow the pay gap between veteran Tier 1 workers and newer-hired Tier 2 workers, (which comprise 45 percent of FCA’s union workforce), create a health-care co-op to corral costs and offer a profit sharing program, among other things.

Critics have said that the contract falls short of offering Tier 1 workers inflation-adjusted wages from their 2007 contract.

In the deal, FCA would move all car production to Mexico and the Ram 1500’s assembly would move from Mexico to Sterling Heights. 

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