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UPDATE: UAW Ratifies FCA Labor Contract
United Auto Workers union employees have approved a four-year contract with Fiat Chrysler Automobiles NV by a 77% margin, according to the union.
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United Auto Workers union employees have approved a four-year contract with Fiat Chrysler Automobiles NV by a 77% margin, according to the union.
Workers rejected an earlier version of the deal by a 2:1 margin. The new pact increases the starting wage of new hires and narrows the ultimate pay gap between them and veteran workers to $1 per hour over four years. The agreement also sets a goal of eliminating the pay differential entirely within another four years. Pay equity was a major issue.
Unlike the initial proposal, the approved contract also details FCA’s North American production strategy, which includes expanding U.S. output of high-profit trucks and SUVs and move some of its less-profitable small-car manufacturing to Mexico.
The UAW says it will now shift its bargaining focus to General Motors Co. The union has been working at GM, Ford and FCA without a contract since the previous four-year pact expired on Sept. 14.
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