United Auto Workers Members Reject Tentative Deal With Fiat Chrysler, Strike May Happen

United Auto Workers Members Reject Tentative Deal With Fiat Chrysler, Strike May Happen
Picture from Fiat Chrysler Plant / Fiat Chrysler Automobiles Website

The United Auto Workers union has recently announced that its members have voted against a tentative agreement with Fiat Chrysler Automobiles US. The said agreement was voted down by 65%.

Tentative four-year agreements were reached early on for both hourly and salaried workers. The agreements include a ratification bonus, general wage increases plus lump sums, other bonus schemes, upside earnings, 64 paid holidays, improved profit sharing plans and a new health care co-op. Moreover, in a letter to union members, International Union, UAW President Dennis Williams and UAW Chrysler Department Vice President and Director Norwood Jewell have said that the new proposed agreements proudly rewards workers for the hard work and sacrifices they have made to help turn the company around from the turmoil of 2007. Moreover, the said new agreements also value seniority on the job.


Fortune reports that Fiat Chrysler Chief Executive Officer Sergio Marchionne had even cancelled an appearance at a Frankfurt auto show just to be able to help with the labor talks. The UAW had actually chosen Fiat Chrysler to set the pattern for new master contracts among three Detroit automakers. Afterwards, UAW is set to enter discussions with both General Motors and Ford.

Related: Fiat Chrysler Faces More Safety Issues

Now, the UAW must make a decision on whether it shall do another round of negotiation with Fiat Chrysler and try to get a better deal or ask its member to do another vote. The fact that no agreement has been reached for the moment may indicate that there is a strike looming in the future.

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