FCA Workers Approve New Contract By More Than Two-Thirds
Two-Tier Wages Eliminated, Detailed Product Plan
Sergio Marchionne and the rest of Fiat Chrysler Automobiles (FCA) management can now breathe a sigh of relief after UAW-represented FCA workers approved a revised labor agreement by more than a two-thirds margin, Automotive News reports. The final tally was 77 percent of workers voting in favor of the contract. The major bone of contention in the last few rounds of talks, the two-tier wage system, has been eliminated and replaced with an eight-year stair-step program that will allow all workers to work up to a maximum hourly wage of $30 after eight years of seniority. The path to full wages is similar to a plan put in place for Canadian auto workers in 2012, which had a 10-year step plan.
The plant with the slimmest margin of approval was the Toldeo, Ohio, plant where the Jeep Wrangler and Cherokee are currently made. Workers were uneasy after hearing plans to move Cherokee production to Belvidere, Illinois. Future plans for the Toledo plant reportedly call for expanded production of the Wrangler and the addition of a Wrangler-based pickup. Workers have assurances that the production moves will not affect employment at the plant. The UAW will now continue negotiations with General Motors and Ford Motor Company, which have been proceeding in the background as the FCA deal was being worked out.
Source: Automotive News