Editor's note: This story is part of the WardsAuto digital archive, which may include content that was first published in print, or in different web layouts.
The UAW National Chrysler Council overwhelmingly approves the tentative 4-year contract reached with FCA US this week, sending the pact to some 40,000 rank-and-file members for a vote, the union says.
The UAW says the tentative contract sets the course for a return to traditional wages at FCA, eliminating the 2-tier pay structure over the course of the next eight years.
The deal was reached just a few minutes after Tuesday’s 12 AM strike deadline, following the defeat of an early agreement in membership voting.
Key provisions of the agreement:
- Tier 2 workers on the job for four years will receive Tier 1 pay by the end of the contract, a pay increase of more than $10 per hour for many. Workers with two years of service will see pay raised more than $8 per hour by the time the contract expires. All workers will be paid Tier 1 wages within eight years.
- Tier 1 workers will see wages increase 3% and receive two 4% lump-sum bonuses, for a total of $20,000 in added income over the course of the 4-year deal.
- No change in healthcare benefits.
- An improved formula on profit-sharing. Employees who work the most hours will see the biggest bonuses.
- A $3,000 ratification bonus.
- Increased 401(k) contribution to 6.4% of pay.
- Promise of $5.3 billion in investment in U.S. operations.
- Limits on the number of consecutive Fridays employees must work when operating on 4-day, 10-hour shift schedules. The UAW and FCA will explore other work schedules within 60 days of the contract's ratification.
