UAW approves tentative contract with Fiat Chrysler

Published 11:09 pm Friday, October 9, 2015

DETROIT – The UAW union’s national council has approved a proposed tentative agreement with Fiat Chrysler Automobiles and it will be up to workers now to approve a deal that sets a clear path to full wages for entry-level workers while promising not to outsource work over the four-year pact.

It also provides more detail, plant by plant, on jobs and future product changes. The net result? About 100 additional jobs.

“We returned to the bargaining table with Fiat Chrysler with a clear mandate for us to negotiate a contract that gives all employees a clear and defined path to a fair pay and decent standard of living,” UAW President Dennis Williams said during a press conference on Friday. “I can say now that we now have secured a stronger contract.”

Under the new agreement entry-level workers will see their hourly pay increase from $15.78 to $19.28 per hour to $29 over a period of eight years. The contract workers rejected a week ago would have only taken workers up to a top wage of $25.35 per hour, a wage that many workers viewed as falling short of promises made by the union and the company in 2011.

If ratified, the new agreement also provides entry-level workers with a $3,000 signing bonus and longtime workers with a $4,000 signing bonus. It also provides longtime workers with 3 percent pay increases in the first and third years of the contract and 4 percent lump sum payments in the second and fourth year of the contract.



The two sides also have agreed to meet within 60 days to revisit complaints about alternate work schedules that are hard on workers’ health.?

“I think this will pass,” said Art Schwartz, a retired director of General Motors labor relations. Asked how the union could enforce wage provisions in years beyond this contract, Schwartz said, “Well, the union has this in writing now.”

For the most part, workers were embracing the new contract on Friday. “I think there’s a good shot at passing this,” said Ken Mefford, who works at the Detroit-area truck plant that makes the Ram pickup. “There is enough money … there is money for the older workers and a path for raises for the others; health care didn’t go up, there is an increase in pensions and dental and vision coverage.”