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Last-Minute Deal Averts Strike at Fiat Chrysler

Two sides hope workers will give nod to second contract proposal.

by on Oct.08, 2015

FCA CEO Marchionne and UAW Pres. Williams were all smiles as they began contract talks.

With workers ready to take to the street, Fiat Chrysler managed to hammer out a second tentative contract settlement with the United Auto Workers Union just minutes before the midnight deadline on Wednesday.

Negotiators from both sides faced pressure to come up with a better deal than the one originally delivered last month but then rejected by a nearly two-to-one margin in a vote by FCA’s 40,000 U.S. hourly workers. Neither side was willing to discuss details of the new agreement ahead of a Friday morning meeting of UAW leaders.

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“FCA US confirms that it has reached a new tentative agreement with the UAW,” read a statement issued by the automaker minutes after the 11:59 pm deadline. “Because the agreement is subject to UAW member ratification, the Company cannot discuss the specifics of the agreement pending a vote by UAW members.”


Chrysler, UAW Reach Settlement

Contract agreement comes nearly a month after original deadline.

by on Oct.12, 2011

Chrysler CEO Sergio Marchionne with UAW President Bob King seen earlier this year.

Working well into the night, Chrysler and United Auto Workers Union negotiators hammered out a new contract for 26,000 hourly employees – nearly a month after the maker’s original labor contract was set to expire.

The deal makes the conclusion of this year’s round of bargaining for the Detroit makers – contract talks considered crucial to both labor and management.  Significantly, the talks steered clear of the angry rhetoric and confrontations that had seemed a traditional part of bargaining for the domestic manufacturers.

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While specific details of the Chrysler contract have yet to be released initial indications are that the settlement follows the pattern set last month by the UAW’s contract with General Motors, which would include a small “signing bonus,” improvements in profit sharing, some inflation protection and a modest increase in wages for new workers hired into a lower second tier.

But, notably, there will be no increase in base wages for its hourly workers.  And, overall, Chrysler is likely to have accepted little of an increase in its overall labor costs, which averaged just over $50 an hour going into this round of talks.