United Auto Workers, Fiat Chrysler reach tentative agreement, avoid strike

Published 10:45 am Thursday, October 8, 2015

By Community News Content

The United Auto Workers and Fiat Chrysler Automobiles announced the two sides had reached a tentative agreement just after midnight Thursday morning, at least temporarily avoiding a strike.

UAW sent notice to FCA Tuesday that it would terminate its contract extension at 11:59 p.m. (EST) Wednesday if the two sides did not come to a collective bargaining agreement. The UAW membership voted down a proposed national contact last week, with 65 percent voting no.

The union’s demands include cost-of-living wage increases, ending shifts that run 10 hours a day for four days a week and abandoning a two-tier pay structure. 

The UAW released a statement at 12:04 a.m., announcing “after a lengthy bargaining process, your UAW FCA national bargaining committee has secured significant gains in a proposed tentative agreement with FCA announced today. The bargaining committee unanimously voted to send the proposed tentative agreement to local union leaders who make up the union’s UAW National Chrysler Council.”

UAW Local 1302 president George Maus said he and his 340 union members aren’t frustrated with the situation.

“I think the membership understands solidarity and is ready to do whatever we’re asked to do,” Maus added.

Maus has seen three strikes in his 23 years as a UAW member, but never participated in an extended strike. But, in the event of an extended strike, those members who participate in picketing or other strike duty would see a $200 weekly wage as well as the cost of medical benefits, which are provided by the UAW strike and defense fund, a fund which has about $600 million in it.

With 7,000 members, UAW Local 685, the largest local in Indiana, emphatically voted down the national contract last week, voicing concerns of insurance uncertainty and a lack of a cap on the percentage of Tier 2 workers on its tiered-wage scale. Tier 2 workers make significantly less money on the hour, about $11, than their Tier 1 counterparts.

A strike would have meant the nationwide walkout of roughly 40,000 Fiat Chrysler employees who are UAW members. That’s a drop in the bucket compared to the 1.1 million UAW authorized workers who walked out of Chrysler facilities during the 1970 strike which lasted 67 days, but also won a 13 percent raise for its workforce.

Details for this story were provided by the Kokomo, (Ind.) Tribune.  

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