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FCA Labor Pact with UAW Runs into Stiff Opposition
The proposed four-year contract between the United Auto Workers union and Fiat Chrysler Automobiles NV is being soundly rejected in early ratification votes, Reuters reports.
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The proposed four-year contract between the United Auto Workers union and Fiat Chrysler Automobiles NV is being soundly rejected in early ratification votes, Reuters reports. Results won't be finalized until mid-week.
Reuters reports three large FCA vehicle and powertrain facilities in Indiana and Michigan have voted against the pact by margins as great as five to one.
The agreement, which affects 40,000 hourly FCA workers in the U.S., would narrow but not eliminate the industry's eight-year-old two-tier wage scheme that pays new hires less than veteran employees. New workers currently start at $16.50 per hour and can eventually earn $19.28 compared with about $28 for long-term workers. The new contract would raise the latter two amounts to $25 and about $30, respectively.
The deal also would shift production of some low-profit small cars to Mexico in exchange for increasing high-profit truck and SUV output in the U.S.
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