By on October 12, 2015


United Auto Workers at Fiat Chrysler Automobiles facilities will vote next week on a newly proposed contract to cover 40,000 workers, the Wall Street Journal reported.

Workers will have until Oct. 20 to review the proposed deal, which was reached last week before a threatened strike. According to the report, workers will vote on the deal Oct. 20-21. Roughly 65 percent of workers reportedly voted down the first deal between the automaker and the UAW because of concerns over its tiered pay structure, health care co-op and lack of communication from union leadership.

The Wall Street Journal reported that the health care co-op was scrapped in the second deal, and that lower-paid, second tier workers could eventually reach $29 per hour after eight years. The contract also proposes two raises during the terms of the four-year deal. Union leaders have taken to social media to post details about the deal in an effort to communicate with membership.

On its website, the UAW highlights terms of the new contract, which include a $4,000 ratification bonus for veteran, Tier 1 workers and $3,000 for Tier 2 workers.

Critics have said that retaining the tiered-pay system between workers isn’t enough and that the proposed contract didn’t address capping hired workers in the lower tiers. Union negotiators on the UAW website said the proposed deal reflects a balance between job security and wages:

The biggest challenge for your bargaining committee was the wage gap between new hire and traditional employees. They took a thoughtful and strategic approach to addressing this inequity and found a solution that closes the gap over time in a way that allows the company to continue investing in our plants, develop new product and keep our jobs secure. Figuring out how to balance these competing demands is one of our responsibilities as your bargaining representative. Not considering the give and take between job security, and good pay and benefit is irresponsible.

Its unclear how much of the UAW’s contract will be included in its negotiations with Ford and General Motors. Commenters on the union’s Facebook page expressed dissatisfaction with the tiered pay system staying in the FCA deal:

Your promises of ENDING 2 TIER have fallen short! Bring anything less to the ford workers will fall flat.

Roughly 45 percent of FCA workers are Tier 2 workers, which is proportionately higher than Ford and GM.

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13 Comments on “Fiat Chrsyler Union Workers Given More Time To Review Proposed Deal...”

  • avatar

    I hope the workers vote it down. The industry needs to get this resolved, one way or the other.

  • avatar

    In what way does a 2 tier ratification bonus not show how tone deaf the representatives on both sides are? I’m not in the industry, but that just seems like not listening.

    • 0 avatar

      In-progress (Tier2) employees will receive a signing bonus of $3000 upon ratification of the contract. There’s also an increase in the 401K contribution to 6.4% from 4%. The profit sharing formula is now based on hrs worked which is the same for everyone – which is a great benefit. There’s better dental and optical coverage for in-progress employees. All this, and more, in addition to a path to higher @29.00 wages.

      And if it takes 8 years to reach $29.00 – then perhaps the disgruntled in-progression employees should return to their previous jobs and try to get something better :) .

      The contract highlights and the actual language books are available at

      It would be educational for all in this site to actually read it all, highlights and actual language, in order to get an understanding of what it takes to obtain all these benefits.

  • avatar
    SCE to AUX

    They should have offered the higher signing bonus to the Tier 2 workers, as a token of their sincerity to eventually eliminate the inequity.

    • 0 avatar

      But they’re not proposing to end the tier system. They’ll just pay tier 2 $29/hour in the eighth year of the FOUR year contract! Transmitting the details of the contract isn’t enough.

      The UAW has to send people to every local and tell them outright that FCA can’t afford any more and their jobs are in danger. It seems the months of sales increases have convinced workers that FCA is making money, when it’s low margin income is being used for making payments on billions in long term debt.

      In truth, the company has little money for new product, much less pay raises, and if Sergio can’t find a merger partner/buyer, he’ll have to break up the company, spinning off the best assets to the stockholders, with the rest, including debt to bondholders, going into liquidation bankruptcy.

  • avatar

    Where, exactly, can I buy a Chrsyler? Is it right down the street from my Cehvrolet dealer, or next to the Frod dealer?

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