Fiat Chrysler, UAW reach tentative labor deal
Fiat Chrysler and the United Auto Workers union reached a tentative four-year labor deal, both groups announced Saturday.
The agreement involved Fiat Chrysler committing to investing $9 billion to create 7,900 new jobs over the next four years, including $4.5 billion to develop 6,500 jobs in five plants that the automaker already agreed to earlier this year, Reuters reported.
Union members still need to ratify the agreement, as they have with deals with Ford and General Motors. Members rejected a 2015 deal with Fiat Chrysler, according to Reuters.
Fiat Chrysler confirmed the deal was reached in a statement, saying “further details will be provided at a later date.”
“FCA has been a great American success story thanks to the hard work of our members,” UAW acting President Rory Gamble said in a statement. “We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States.”
The deal comes after UAW’s 40-day strike against General Motors, which cost the company $3 billion.
The union’s deal with GM involved a $9 billion investment commitment in the U.S., including $7.7 billion to the plants and to develop or maintain 9,000 union jobs. Ford committed to spending $6 billion in its U.S. plants and to create or maintain 8,500 jobs, according to Reuters.
Both companies also committed to signing bonuses, with $9,000 for full-time Ford workers and $11,000 for GM workers.
A federal corruption investigation into Fiat Chrysler could affect whether union members support the agreement, according to the news wire. General Motors has accused Fiat Chrysler of bribing union officials to reap benefits in negotiations, but Fiat Chrysler denies the allegations.
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