Such benefits could help the contract gain approval from high-level members, which experts say could be a challenge. UAW-FCA members rejected an initial interim agreement in 2015. The four-year case continued with a proposed merger and a federal investigation into corruption against the UAW, which caused shocks within the union leadership and an unprecedented dispute between two car manufacturers. But months of talks – including a 40-day national strike against General Motors Co. – have reached agreements closer to parity, especially at Fiat Chrysler. Meanwhile, automakers have retained much of the flexibility they wanted, as sales are likely to fall and they want to compete in the autonomous and electric future. Fiat Chrysler`s agreement with the UAW reduces health costs for lower-paid production employees – and highlights an area in which the Detroit Three have not saved money and could reduce the labour cost gap between FCA and its competitors. And while the agreements provide existing full-time workers with the means to reach the top of the pay scale within four years, automakers can still employ temporary workers and have, depending on flexibility, the size of their manufacturing footprints. “We are pleased to have reached a new agreement that will allow us to continue our track record of welcoming well-paid UAW representatives,” said Mark Stewart, Chief Operating Officer of FCA North America, in a statement. Like contracts already approved in the fall with Ford and GM, all current senior production employees would earn peak wages until the end of the four-year contract. Temporary workers would have a path to full-time status and peak wages; It is estimated that 3,800 employees will reach full-time status by 2020. They would have the opportunity to be hired before the company hires street workers, according to the summary.
The majority of Trenton Engine employees accepted the preliminary agreement at 79%. It has received the support of 73% of the production and 78% of the artisans of Dundee Engine. In total, a majority of the Toledo assembly plant approved the agreement, although production workers voted against the agreement by 18 votes. A majority of employees of Detroit`s North Jefferson Assembly accepted the agreement with 82% in agreement, while craftsmen rejected it by 58%. On the day Jones resigned, General Motors filed a complaint against Fiat Chrysler, claiming that the company had bribed UAW officials to obtain advantageous labor contracts. In a press release, Fiat Chrysler said GM`s complaint was “without merit” and dismissed it as an attempt to disrupt its recent merger agreement with French automaker PSA Group, a merger that, if concluded, would make the combined company the world`s fourth-largest automaker in terms of production volume. The UAW said a vote to ratify the agreement with Fiat Chrysler could arrive as early as December 6. If the union is accepted, it will avoid repeating its bloody negotiations with General Motors earlier this year.