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  • William Maley
    William Maley
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    FCA and UAW Reach An Agreement, Members To Vote On It

      The First Contact Negotiation Is Done. FCA and the UAW Reach An Agreement.

    Last night, the United Auto Workers (UAW) and Fiat Chrysler Automobiles (FCA) announced they had reached a tentative agreement. This comes a couple days after the UAW announced FCA would be the lead target for contract negotiations. Details of the new contract are still under wraps as the UAW's executive board need to vet it and members to vote on it.


    But during a press conference last night, a couple of key details of the new contract did emerge. FCA CEO Sergio Marchionne said the two-tier wage system - an item that many UAW members wanted to be addressed in this go around - will be going away in due time.


    "The team has crafted together a very thoughtful process, where the issue will go away, go away over time," said Marchionne.


    One other key part of the contract talks was reducing health care costs. UAW President Dennis Williams has said previously of setting up a co-op where the UAW members of the three automakers are pooled together to give them some clout when dealing with health care providers. Marchionne says he likes this idea, but it remains to be seen whether Ford and GM also like this idea.


    Source: Automotive News (Subscription Required), Detroit News, Detroit Free Press

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