Fiat Chrysler and Canadian labor union Unifor reached a tentative contract agreement Monday, avoiding a possible strike that would have affected about 10,000 autoworkers.
The new contract agreement will give workers $12,000 in bonuses over the course of four years and a 2 percent wage increase in the first and fourth years of a new contract.
More importantly, the deal also saw FCA agree to invest $325 million in a new paint shop at its Brampton, Ontario plant. The aging plant’s future was previously in jeopardy as it wasn’t clear if FCA was willing to make the investment required to keep it up-to-date.
In addition to bonuses and wage increases for existing employees, new hires will receive raises in the first three years of the contract. The previous contract froze hourly ages at $20.40 for the first three years before workers graduated to a 10-year salary grid. Now, the gradual rise to a $34 an hour pay will begin immediately.
Workers at FCA’s Windsor, Ont., Brampton, Ont., and Toronto plants will vote on the new contract Saturday. The Windsor site is tasked with building the new 2017 Chrysler Pacifica, while Brampton builds the Dodge Charger and Challenger and Chrysler 300. Its Toronto casting plant produces engine parts for a wide range of FCA powerplants.