Report: New UAW Contract Could Boost Tier 2 Pay Up to $29 Per Hour
Bloomberg reported (via Automotive News) Thursday that a proposed contract brokered Wednesday night between the United Auto Workers and Fiat Chrysler Automobiles would raise Tier 2 workers’ pay to $29 per hour, up from $25 per hour, after an eight-year, “grow-in” period.
The separation between the two classifications of union employees — veteran Tier 1 and more recently hired Tier 2 — was a major point of contention for the workers, who voted down the proposed contract last week by a margin of nearly 2-to-1.
Roughly 40 percent of FCA’s union employees are Tier 2 workers, a much higher proportion than General Motors and Ford. On average, those employees are paid $9 to $12 less per hour less than workers hired before the recession. The proposed contract, according to the report, would not eliminate the tiered system, but instead bring closer the two pay scales. The contract also wouldn’t cap the number of Tier 2 workers hired by the automaker.
The union will take the proposed contract — which was negotiated with FCA only hours before a proposed strike — to its workers on Friday.
“We heard from our members, and went back to FCA to strengthen their contract,” UAW President Dennis Williams told employees Thursday. “We have made real gains and I look forward to a full discussion of the terms with our membership.”
Senior employees would get the same raises proposed in the rejected contract.
Let's be sure to put the hate on anyone wanting to earn a decent wage, doing a shitty job, in freaking 2015.
So many fancy armchair analysts getting uppity over a $160 a week raise... Who knew $8,320 a year raise would make people lose their minds. I mean selling nearly 2 million vehicles annually in the US and nearly 116 billion in net revenue...Clearly they better be running to stop the checks or they'll be out of business tomorrow! Anyhoo....The plants aren't closing anytime soon. Sergio knows that Mexican wages are rising faster than most plants in SE Asia and while they don't parallel the US' yet they will sooner many will think.
The tier 2 workers will get raises over eights years? The contract isn't that long, and FCA's tier 2 workers aren't going to wait that long. It looks like the UAW is in the impossible position of trying to satisfy its members while knowing that their employer is on the rocks and won't survive the contract they want. FCA will have to merge with a bigger company, be broken up through spin-offs, or be parceled off in bankruptcy. It doesn't have the income to pay higher salaries and service its massive debt from old Fiat. The workers need to be told how shaky their job security is, but that would undermine Sergio's effort to find a buyer.
Does FCA really have the money for this? Or in reality, they are just kicking the can ? Knowing that they most likely will be sold, or dismembered long before such wages take effect?