UAW releases details of new contract with FCA

DETROIT (AP)

The UAW union’s national council has approved a proposed tentative agreement and it will be up to workers now to approve a deal that sets a clear path to full wages for entry-level workers while promising not to outsource work over the four-year pact.

The UAW said the new agreement provides:

—All current entry-level workers will be paid traditional wages within eight years. Entry-level workers with four years of service will be paid traditional wages by the end of this contract — that’s more than $10 per hour in wage increases.

—Entry-level workers with two years of service will receive more than $8 per hour in base wage increases by the end of the contract.

—First general wage increases in nine years for long-term employees. With two 3 percent wage increases and two 4 percent lump-sum bonuses, traditional workers will be taking home an additional $20,000 over the next four years.

—Health care is unchanged with no premiums.

—Profit sharing payout is now based on hours worked, similar to how it is tabulated at Ford. Under the new formula, workers get $800 for every 1 percent in North American profit margin.

—Upon signing new UAW contract, longtime workers get $4,000 bonus; entry-level get $3,000 payment from Fiat Chrysler.

—401(k) contribution rate goes up to 6.4 percent for entry-level workers.

—$1.7 billion in pension funding with the company expected to contribute $1.7 billion in cash.

—$5.3 billion to be invested in U.S. plants and a moratorium on outsourcing as the company provides a commitment to fully utilize and invest in its plants and provide job security and growth.

—Increased dental and vision benefits for entry-level workers who are now eligible for annual routine oral exams and cleanings after one year, and vision exams every 24 months after attaining seniority.