Fiat Chrysler Automobiles and the UAW have ratified a new four year contract, with 77 percent of workers voting ‘yes’ on the new proposed deal. The result comes after an initial proposal was resoundingly rejected because it failed to address the issue of FCA’s two-tier pay system.
“FCA US is pleased that UAW members have voted to ratify a new four-year national labor agreement,” the automaker said in a statement. “This agreement represents an investment in our U.S. workforce and recognizes its contributions to the Company’s growth over the past six years. With the bargaining process now complete, the company and our employees can look forward to continuing to build world class products, investing in our operations and achieving the targets set out in our five year business plan.”
Under the new contract, all workers will receive raises and the two-tier pay system currently in place will be slowly eliminated over eight years. Workers with four or more years of experience will make the top $29 hourly wage over four years, while entry-level workers will make $22.50 to $28 over four years before topping out at $29 after eight years. Top-tier workers will also receive a $4,000 signing bonus over the contract agreement, while lower-tier workers will get $3,000.
The UAW is expected to use its FCA negotiations as leverage when it gets into similar talks with Ford and General Motors.