Fiat Chrsyler Union Workers Given More Time To Review Proposed Deal

Aaron Cole
by Aaron Cole
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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.

Aaron Cole
Aaron Cole

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  • SCE to AUX SCE to AUX on Oct 12, 2015

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

    • Lorenzo Lorenzo on Oct 12, 2015

      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.

  • Drzhivago138 Drzhivago138 on Oct 12, 2015

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

    • See 5 previous
    • DubTee1480 DubTee1480 on Oct 12, 2015

      @Lorenzo nice

  • Marty S Corey, thanks for your comment. Mercedes has many different models, and will survive. Jaguar is planning on only offering electric models and will be in trouble. They should continue their ICE models as long as possible, but have discontinued the F-Type already and will probably be discontinuing everything else. We purchased the current XF this year, which is a nice car, but would have been splendid if they had just continued the supercharged V-6 in it.By the way, I have really enjoyed your Continental and Eldorado series. Was just showing it to my barber, who owned several 1954-56 Eldorado convertibles.
  • Marques My father had one of these. A black 1984 Pulsar NX with a 5-speed stick and a grey interior. Dad always kept it in pristine shape-that black paint was shiny even in the middle of the night. I swear I could still smell the Rain Dance carnauba wax! The only issue that car ever had was that it was never driven enough-it would sit for 10 days at a time! The Hitachi carburetor on it(and other Nissans of the time) were known to be troublesome. It went to the boneyard at 72K miles when a hole got punched in the block. By that time the Pulsar had long ceased production.
  • VoGhost This is the only new vehicle I have the slightest interest in.
  • VoGhost I love it. Can't wait to get one. Finally, trucks are becoming actually capable, and it's great for America.
  • Peter Just waiting for Dr. Who to show up with his Tardis, and send these things back to the hellish dark dimension from which they came.