UAW reveals more details for tentative FCA deal
Sun, Oct 11 2015The biggest sticking points that kept the previous contract proposal from being ratified revolved around so-called second-tier UAW workers. Under the rejected contract, there wasn't a clear path in place that would bring these newer hires into wage parity with first-tier workers. The newly proposed contract, however, would have second-tier employees earning around $29 per hour – the same as first-tier workers – after eight years of employment. A slightly revised profit-sharing plan is also included, as is a larger signing bonus for first-tier workers.
Gone from the new contract proposal is a health-care cooperative that would combine workers from all three Detroit-based automakers into one pool. While this action had the potential to lower health-care costs for UAW members, it wasn't universally understood by rank-and-file workers, said UAW President Dennis Williams. "I was a little naive," he said. "I really thought everyone understood it. It is my fault. I should have educated people more on it. And so we did take it out of the agreement."
If ratified, this new contract will go into effect immediately and will cover a four-year period. Over that course of time, the UAW expects FCA to increase its employment figures by a little more than 100 workers, according to reports. Additional details on the contract can be seen on the UAW's website here.
- News Source: The Detroit News, The Detroit Free Press, United Auto Workers (PDF)
- Image Credit: Jeff Kowalsky/Bloomberg via Getty
By Jeremy Korzeniewski
See also: Autoblog Minute: UAW and FCA avoid strike, Clarkson teases new show, Autoblog Minute: UAW and FCA avoid strike, Clarkson teases new show, Autoblog Minute: No strike, FCA and UAW reach tentative agreement.