| 4:37 PM EST

FCA Labor Deal Goes to UAW Workers for Vote

#Chrysler #Fiat #FiatChryslerAutomobiles


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United Auto Workers members are expected to begin a ratification vote on Friday for a four-year labor deal with Fiat Chrysler Automobiles NV.

The tentative deal was approved earlier today by the union’s FCA Council. It now goes to local level informational presentations. Rank-and-file voting is expected to run through most of next week.

Under terms of the deal, FCA will pay ratification bonuses ranging from $3,500 for temporary workers to $9,000 for seasoned UAW members. Full-timers hired before 2007 will get 3% pay hikes in the first and third years of the agreement. Skilled trades and senior production workers also are to receive 4% bonuses in the second and fourth year.

The UAW says the contract commits FCA to invest $9 billion in its U.S. facilities and boost employment by 7,900 people between now and the end of 2023.

The tentative pact also beefs up medical coverage by providing a prescription drug insurance to temporary workers and giving recent full-time employees the same healthcare benefits enjoyed by veteran workers, according to The Detroit News, which cites an internal UAW summary.

The agreement would restrict FCA’s ability to use temporary employees, which currently account for about TK% of its workforce, and make such staffing decisions subject to UAW approval.

The pact lifts the UAW’s profit-sharing cap at FCA and raises the formula to $900 per 1% of profit margin in North America.

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