FCA and UAW Reach Deal in Final Hour, Avert Strike for Now

Mark Stevenson
by Mark Stevenson

On Wednesday night, as the deadline for strike action came closer and closer, the United Auto Workers-Fiat Chrysler Automobiles National Bargaining Committee announced they had “secured significant gains” over the last proposed tentative agreement that was widely rejected by UAW membership.

Details on the new agreement were not published.

The new proposed agreement averts a strike — for now — and will be sent Friday to local union leaders that comprise the UAW National Chrysler Council for discussion and voting.

“We heard from our members, and went back to FCA to strengthen their contract,” said UAW President Dennis Williams early Thursday morning in a statement. “We’ve reached a proposed Tentative Agreement that I believe addresses our members’ principal concerns about their jobs and their futures. We have made real gains and I look forward to a full discussion of the terms with our membership.”

FCA acknowledged they reached a new proposed tentative agreement with the union, but declined to give specifics due to the pending vote by UAW members.

This is the second tentative agreement to come from UAW and FCA in this year’s negotiations after the first tentative agreement was rejected by UAW membership. Workers cited their displeasure with the agreement’s failure to eliminate the two-tier pay system, a relic of the last collective agreement that helped prop up Chrysler and GM post-bankruptcy.

The two-tier pay system goes against one of the union’s core values of equal pay for equal work.

Workers also cited issues with “alternative work schedules” that would have seen them on four, 10-hour shifts instead of five, 8-hour shifts and switching between late night and early morning shifts within days. There were also no production promises in the last proposal, a detail that’s usually used as a sweetener for workers to accept the agreement by showing them long-term commitments to specific products.

If a proposed tentative agreement was not found Wednesday night and workers hit the picket lines, they would be entitled to $200/week in strike pay — but only once the strike entered its third week. The action could have cost the automaker $1 billion per week.

A ratified agreement will spell out the terms of employment for some 40,000 unionized FCA workers in the United States for the next four years.

Mark Stevenson
Mark Stevenson

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  • Anonymous Anonymous on Oct 08, 2015

    Good. Now BTSR and I can resume our impatient wait for Chrysler to produce a 300C Hellcat.

  • Xeranar Xeranar on Oct 08, 2015

    And I called it. This was clearly a way for leadership who has long-term social connections with management to play a middle-man and keep from burning bridges while intentionally sweetening the deal. It's pretty standard action for large industrial unions with independent staffing.

  • Lorenzo The solution is so simple: if the driver shifts into neutral without applying the parking brake, the horn sounds and lights flash until the parking brake is applied. After the third time, the driver should be insulted by a voice saying, "Shouldn't your wife be driving?", or "Where did you get your license - Dollar Store?"
  • Akear About 7 years ago crazy Mary said there is no future for Hybrids and GM would concentrate on EVs. Barra has an amazing ability to make the wrong decisions on just about every issue. I used to think Rick Wagoneer and Roger smith were the biggest GM idiots. I am not so sure now.
  • GBJT I’ll keep my 2021 Tundra and wouldn’t buy a 2022 Tundra due to the twin turbo V6 and transmission.
  • 2manyvettes Um, somebody correct me if I'm wrong, but I clearly remember a story about used EV's in China rotting away in a field somewhere because nobody wanted to buy them, much less dealers wanting to sell them. Anyone, anyone, Bueller,Bueller?
  • Lorenzo To call it a Picasso, it should have been more angular. They should have called it a Degas, it's my impression cars look better in pastels.