Canadian Workers Approve FCA Labor Contract

Canadian hourly workers at Fiat Chrysler Automobiles NV have approved a four-year contract covering about 9,800 employees. Unifor, which represents the workers, says the tentative deal was ratified by 70% of the votes.

FCA has agreed to invest C$325 million ($247 million) to update the paint shop at its assembly plant in Brampton, Ontario, according to the union. The company also indicated it might assign a new vehicle program to the facility if it can make a positive business case and secure “adequate” government aid.

The Ford deal mirrors last month's General Motors Co. contract. Unifor will now attempt to apply the same contract pattern to Ford Motor Co. operations in Canada, including a demand for new investment to ensure the continuing operation of the Ford assembly plant in Oakville, Ontario.

But Reuters says the union faces a hurdle over two-tier wages. The contracts with GM and FCA left in place 10-year "earn-in" period before the pay gap closes between new hires and veteran workers. But the Unifor local that represents Ford workers at the Oakwood facility say they will strike if Ford refuses to shorten the earn-in period, thereby challenging the pattern agreement.