Chrysler News: UAW Workers At FCA Approve New Labor Contract

[William Maley]

It is now official; the UAW and FCA have a new contract. This morning the UAW announced the 77 percent of its members at FCA approved a new four-year labor contract. This comes three weeks after a majority of UAW workers voted down the first agreement reached by the two parties.

 

“The recent bargaining process that took place on behalf of our members at FCA is a testament to the UAW’s democratic values and commitment to our members. The resolve of our membership and the dedication of our negotiating team has produced an agreement that affords UAW members a strong wage package and job security while still allowing the company to competitively produce high quality vehicles for our customers," said UAW President Dennis Williams in a statement.

 

So what does the new contract entail? According to the Detroit News, the new contact features a plan to end the two-tier wage program, a larger signing bonus, and cutting the proposed health care co-op.

 

"I think this contract was presented much more clearly. It included larger raises for the people who were considered tier two before and are now called 'in progression workers,' and it was much more clear about what changes were being made to health care," said Kristin Dziczek, director of the labor and industry group for the Center for Automotive Research in Ann Arbor.

 

So with FCA all done, the UAW turns its attention to the next automaker. Who is that lucky automaker? According to Automotive News, that happens to be General Motors

 

Source: Detroit News, Detroit Free Press, Automotive News (Subscription Required)

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[G. David Felt]

Beginning of the end for FCA, I do not see them surviving and still being FCA in 5 years.