The United Auto Workers and Fiat Chrysler Automobiles NV have entered into an interim employment contract, the parties said on Saturday. The agreement also covers facilities whose future was somewhat uncertain. Fiat Chrysler would not sell or sell the Mount Elliott tool in Detroit and would look for future ways to use the site. Over the next two years, the company will continue to work jointly with the ZF Group at the Axle plant in Marysville, after which UAW negotiated with ZF. Staff would have the option of changing facilities. Rory Gamble, President of the UAW, thanked the members of the UAW-FCA for their patience and hard work. “The ACF has been a great American success thanks to the hard work of our members. We have achieved significant gains and job security measures for the fastest growing automotive company in the United States,” said Gamble. “During the previous four-year contract, FCA welcomed more than 6,400 new UAW members.” ACF spokeswoman Jodi Tinson confirmed that an interim agreement had been proposed and said in a prepared statement that further details will be released at a later date.
“The typical negotiation strategy has been a very effective approach for the UAW and its members to negotiate economic gains in terms of wages, benefits and job security,” Cindy Estrada, UAW vice president, said in a statement. “Out of respect for our members, we will refrain from commenting further or publishing full details of the agreement until AAV Council leaders meet to verify the details.” The UAW is facing a potentially difficult new ratification vote as it attempts to conclude the last of three contracts with Detroit automakers to conclude the 2019 negotiations, marked by a 40-day strike against General Motors and a scandal that forced the resignation of the union`s president. FCA has doubled the size of its hourly workforce in the United States and, as with GM and Ford, the status of new recruits has been a major topic in the discussions. About 64% of the 47,000 workers per hour of FCA are expected to reach the top of the pay scale, about $32 an hour now, throughout the preliminary contract, say UAW officials, who asked not to be identified because they were not allowed to speak publicly. Wage increases and lump sum payments follow the Ford and GM model. Skilled craftsmen and highly paid production workers would benefit from 3% of basic wage increases in the first and third year of the agreement. In addition, they would receive 4% lump sum premiums in the second and fourth years. Lower-paid full-time and temporary workers, hired before 2007, would also benefit from a 3% increase in wages. Time, which was hired before 2015, would have an improved salary plan. “FCA confirms that the company and the UAW have reached an interim agreement on a new four-year contract,” the automaker said in a statement. “Further details will be released at a later date.” Details of investment investments will be interesting in the proposed DCA agreement.
According to previous Reports by the Free Press, GM has pledged to invest $7.7 billion in U.S. production and create or maintain 9,000 jobs, and Ford has committed $6 billion to create or preserve 8,500 jobs. Fiat Chrysler has committed to invest $4.5 billion and 1,400 new jobs under the four-year contract. Added to this is the announcement of US$4.5 billion in February at five Michigan plants to create 6,500 new jobs, including the transformation of the Mack Engine Complex on the east side of Detroit into a new jeep assembly plant. Under the agreement, the plant would operate three eight-hour shifts, as would the adjacent Jefferson North. Jefferson North would receive investments of $US 3 billion, up from US$900 million announced in February.