United Auto Workers members of Fiat Chrysler Automobiles on Wednesday ratified an employment contract with the automaker, ending nearly five months of union negotiations with the Detroit Three for the next four years. Wage increases and lump sum payments follow the Ford and GM model. Skilled craftsmen and highly paid production workers would benefit from 3% of basic wage increases in the first and third year of the agreement. In addition, they would receive 4% lump sum premiums in the second and fourth years. Lower-paid full-time and temporary workers, hired before 2007, would also benefit from a 3% increase in wages. Time, which was hired before 2015, would have an improved salary plan. Fiat Chrysler`s agreement with the UAW reduces health costs for lower-paid production employees – and highlights an area in which the Detroit Three have not saved money and could reduce the labour cost gap between FCA and its competitors. And while the agreements provide existing full-time workers with the means to reach the top of the pay scale within four years, automakers can still employ temporary workers and have, depending on flexibility, the size of their manufacturing footprints. “Any full-time production employee currently working at FCA will be the best until the end of this four-year contract,” Cindy Estrada, UAW vice president and director of the union`s FCA division, said in a statement. She added that all temporary workers also have a path to full employment.
Fiat Chrysler Automobiles signed a temporary employment contract with the United Auto Workers on Saturday, making it the last of Detroit`s three major automakers to reach an agreement with the union this year. The agreement would provide the same health insurance – including dental and visual coverage – for lower-paid full-time workers who receive high-level seniority workers, as indicated by a union grouping in the agreement. Your plans do not include monthly bonuses. The provisional agreement comes at a time of upheaval for the UAW. Earlier this month, union president Gary Jones abruptly resigned after he was accused of abusing union money. Jones has not been charged with a crime. His lawyer told the Detroit News that he resigned to avoid “hijacking the union`s core mission, improving the lives of its members and their families.” The companies said no plants would close as a result of the merger. Most PSA unions in Europe shared a positive view of the combination, although the UAW did not comment publicly on a compromise proposal adopted in October. According to Rothenberg, the language to protect workers in the event of a merger remains in the provisional agreement.