The chief executive of Fiat Chrysler Automobiles has called off his previously confirmed presence at the Frankfurt Motor Show that is set to debut tomorrow, after FCA was chosen as the target company in labour talks in the Unites States, according to a spokesman for the carmaker.
Fiat Chrysler is the first to produce a setting pattern for wages and benefits for over 140,000 factory workers that pertain to unions from the Detroit Three Automakers. The company and the Union Auto Workers union made the announcement on Saturday as Sergio Marchionne was scheduled to meet the press at the IAA on Tuesday.
UAW’s president, Dennis Williams, has said loud and clear that one of the association’s most important tasks during the ongoing contract negotiations is to “bridge the gap” between entry level and veteran workers.
His solution was headed towards future elimination of the two-tier employment system in order to eliminate completely differences between employees hired before and after 2007.
After the first agreement between union representatives and General Motors and FCA executives, it is not known yet what will happen next. However, the Detroit Three automakers want salaries to stay competitive despite union leadership pointing that they have posted their best financial results in year.
FCA has been struggling financially lately as it was looking to get GM to form a partnership.
For the indebted manufacturer FCA, the deal would be a great milestone. However, General Motors said that it is happy with its size at the moment and its business plan. GM’s CEO, Mary Barra, will be in Frankfurt for the auto show where she will confirm or not whether she stays opposed to a deal with FCA.