It's a Deal: Fiat Chrysler Workers Ratify UAW Labor Contract

Steph Willems
by Steph Willems
its a deal fiat chrysler workers ratify uaw labor contract

The latest round of Detroit Three labor wrangling has wrapped out without a second strike. In side-stepping the same walkout that plagued General Motors earlier this year, Fiat Chrysler has made itself all the more attractive to its corporate fiancé, Groupe PSA.

Late Wednesday, FCA announced its workers had voted to approve the tentative four-year labor agreement reached between it and the United Auto Workers.

Compared to the GM and Ford tally, a greater measure — 71 percent — of FCA workers voted in favor of the deal.

One wonders what the pushback might have been had FCA not been pursuing a merger with a french auto giant, or if the backdrop of scandal and corruption stemming from the ongoing federal investigation (including a racketeering lawsuit filed by GM) hadn’t existed.

It can be argued that, under these circumstances, FCA would have been more eager to secure a deal at all costs, even if it meant significantly boosting labor expenditures. Greater use of temporary workers compared to other members of the Detroit Three has given the automaker a fiscal advantage in years past. Now, the gap has narrowed.

In its lawsuit, GM alleges FCA brass bribed UAW officials to go easy on it during the 2015 bargaining process.

“Working with the UAW, we are pleased to have reached a new agreement that allows us to continue our record of adding good-paying UAW-represented jobs, building strong families, investing in our communities and offering exceptional vehicles to our customers,” said FCA’s North American chief operating Officer, Mark Stewart, in a statement.

Fiat Chrysler aims to invest $9 billion in its domestic operations over the life of the contract, with 7,900 jobs either created or “secured.” With GM setting the standard for this round of bargaining, FCA fell in line re: pay and benefits.

“Every full-time production employee currently at FCA will be at top rate by the end of this four-year agreement,” said UAW Vice President Cindy Estrada, who heads the union’s FCA department. “All temporary workers now have a defined pathway to full time and top pay as well.”

In addition to these things, the agreement adds coverage for prescription drug costs for temporary workers, equal health care for full-time workers, $9,000 signing bonuses for full-time members, two 3-percent raises, and two 4-percent lump sum payments.

[Image: Fiat Chrysler]

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  • FreedMike FreedMike on Dec 12, 2019

    Looks like one of those made-up midcentury cars from "The Incredibles."

    • FreedMike FreedMike on Dec 12, 2019

      Once again, the system put one of my posts on the wrong thread. This new posting system is poor, folks...get it fixed.

  • Lou_BC "They are the worst kind of partisan - the kind that loves their team more than they want to know the truth."Ummm...yeah....Kinda like birtherism, 2020 election stolen, vast voter fraud, he can have top secret documents at Mar-lago, he's a savvy business man, and hundreds more.
  • FreedMike This article fails to mention that Toyota is also investing heavily in solid state battery tech - which would solve a lot of inherent EV problems - and plans to deploy it soon. https://insideevs.com/news/598046/toyota-global-leader-solid-state-batery-patents/Of course, Toyota being Toyota, it will use the tech in hybrids first, which is smart - that will give them the chance to iron out the wrinkles, so to speak. But having said that, I’m with Toyota here - I’m not sold on an all EV future happening anytime soon. But clearly the market share for these vehicles has nowhere to go but up; how far up depends mainly on charging availability. And whether Toyota’s competitors are all in is debatable. Plenty of bet-hedging is going on among makers in the North American market.
  • Jeff S I am not against EVs but I completely understand Toyota's position. As for Greenpeace putting Toyota at the bottom of their environmental list is more drama. A good hybrid uses less gas, is cleaner than most other ICE, and is more affordable than most EVs. Prius has proven longevity and low maintenance cost. Having had a hybrid Maverick since April and averaging 40 to 50 mpg in city driving it has been smooth driving and very economical. Ford also has very good hybrids and some of the earlier Escapes are still going strong at 300k miles. The only thing I would have liked in my hybrid Maverick would be a plug in but it didn't come with it. If Toyota made a plug in hybrid compact pickup like the Maverick it would sell well. I would consider an EV in the future but price, battery technology, and infrastructure has to advance and improve. I don't buy a vehicle based on the recommendation of Greenpeace, as a status symbol, or peer pressure. I buy a vehicle on what best needs my needs and that I actually like.
  • Mobes Kind of a weird thing that probably only bothers me, but when you see someone driving a car with ball joints clearly about to fail. I really don't want to be around a car with massive negative camber that's not intentional.
  • Jeff S How reliable are Audi? Seems the Mazda, CRV, and Rav4 in the higher trim would not only be a better value but would be more reliable in the long term. Interior wise and the overall package the Mazda would be the best choice.
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