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FCA workers get raises, health care co-op in new UAW deal

The pending labor agreement between FCA US and the United Auto Workers is now in the hands of union members to confirm. It's expected to be accepted, but a final decision could take weeks, The Detroit News reports. Employees didn't get everything they were hoping for, and contrary to earlier reports, the two-tier wage system remains in place. However, there are attempts to lessen the difference between the levels in this four-year deal. Assuming FCA US workers agree to this offer, the starting pay for tier-two workers would go up around a dollar to $17 an hour. The other level would now begin at $25.35, about a $6 increase, and they would receive 3 percent raises in the first and third year of the deal. Both groups also get $800 in profit sharing for each percent the automaker's profit margin rises above two percent. Extra money kicks in for the second tier above eight percent. Union members get a $3,000 bonus for accepting this contract, as well. The other major change under the pending agreement is the previously rumored switch to a healthcare co-op. The goal is to collect members from the Big Three together to create a huge member base for leverage to negotiate better rates with insurance companies. The UAW is promising no increase in cost to workers, according to The Detroit News. The idea was inspired by the similar structure for the Voluntary Employee Beneficiary Association for union retirees. UAW boss Dennis Williams expects the agreement to be approved. "Once the membership looks at it, hears the explanation for it, I think they'll ratify it," he said, according to The Detroit News. The next step is to craft similar deals with General Motors and Ford. Related Video:

Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

Buy a real Popemobile: the Pontiff's Fiat 500L

Pope Francis has urged people to drive "humble" cars, and he practiced what he preached during last year's US visit by riding in a Fiat 500L rather than a more opulent vehicle. The Archdiocese of Philadelphia will offer the chance to feel a little closer to His Holiness on January 29 by auctioning at least one of the Fiats from the Pope's trip at the Philadelphia Auto Show Black Tie Tailgate. All of the auction's proceeds will follow Pope Francis' desire to help the less fortunate. Half of the money will go to the Catholic Charities Appeal, which aids those that struggle with homelessness and poverty. The other half will be split equally among Mercy Hospice, Casa Del Carmen, and the Schools of Special Education of the Archdiocese of Philadelphia. "The Fiat is such an icon of Pope Francis' visit to Philadelphia and the auction of this vehicle serves as an extraordinary final event to close this memorable chapter in the City's history," Donna Crilley Farrell, Executive Director of the World Meeting of Families – Philadelphia 2015, said. FCA US let Pope Francis use two 500Ls while he was in Philadelphia, and the automaker then donated the cars to the Archdiocese, according to its director of communications Kenneth Gavin to Autoblog. The Archdiocese still hasn't decided whether to auction the other one at the Black Tie Tailgate, but the Fiat will be on display at the Philadelphia Auto Show from January 30 through February 7. It's difficult to put a price tag on these special vehicles, Gavin told Autoblog, but the Archdiocese hopes to get as much as possible for them to benefit the charities. FCA US and the US Secret Service have records of the cars' VINs from the trip, and the Archdiocese would show the winning bidder all the documentation to certify the vehicle's authenticity. Related Video: The Archdiocese of Philadelphia and World Meeting of Families – Philadelphia 2015 Offer Opportunity for Bidders to Own a FIAT 500L Used by Pope Francis During Historic Philadelphia Visit at the Philadelphia Auto Show Black Tie Tailgate Held at the Pennsylvania Convention Center on Friday, January 29, the auction will benefit the Catholic Charities Appeal, Catholic Social Services, Mercy Hospice, Casa Del Carmen, and the Archdiocesan Schools of Special Education.