UAW releases details of new contract with FCA

Detroit Free Press (TNS)

DETROIT

The UAW union’s national council has approved a proposed tentative agreement and it will be up to Fiat Chrysler 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.

On Friday, the UAW posted a summary of key components of the new agreement on its website.

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.

The UAW released the details of its new tentative agreement after it briefed several hundred of its elected officials at a meeting in the Detroit area Friday.

The agreement must now be ratified by about 40,000 FCA workers.

The UAW announced it had reached a new agreement with FCA on Wednesday, about one week after its members resoundingly rejected the first agreement.

President of UAW Local 1714 Robert Morales, who represents the fabrication plant workers at the Lordstown General Motors Assembly Plant, explained that the agreement between GM and the UAW will have some differences.

“The agreements are a lot similar, but they will be different,” Morales said. “We still have the same issues.”

After looking at some of the key points to the agreement, Morales said there were a lot of great gains for the union.

Morales was happy to see raises for traditional employees and entry-level workers.

“That’s great news for everyone,” Morales said. “Just that alone will eliminate some of the frustrations from individuals working across from each other who are doing the same job but making different wages.”

After the FCA workers vote, the union will move on to work with Ford or GM.

Many workers rejected the first agreement because it did not provide entry-level workers hired after 2007 with a full path to the top wage earned by longtime workers. Workers also complained about a lack of detail about a new health care cooperative, anger of the automaker’s plans to move the production of some cars to Mexico and work schedules that they dislike.