UAW contract negotiations led by FCA image

As officials work on an agreement, Fiat Chrysler Automobiles NV will set the record for contracts for 141,000 United Auto Workers from the Three Detroit automakers.


Fiat Chrysler was chosen by the union to set the pattern for negotiations and important issues: labour costs, health care and raises. The automaker is also responsible with finding a solution to the two tier system from 2007 that even though it managed to save the industry, it divided auto factories. The company resumed its statement by saying it is the lead company in these contract negotiations.


All through Monday, teams of UAW, Fiat Chrysler, General Motors Co. and Ford Motor Co. Will continue their tentative to reach a deal. If this doesn’t happen by midnight, current contracts typically will be extended. FCA’s CEO, Sergio Marchionne, has cancelled his appearance at the Frankurt Motor Show for these discussions.


If necessary, UAW workers gave permission to their leaders to strike each company. It’s the first year in which workers at Fiat Chrysler and GM are legally permitted to strike, as part of the companies’ taxpayer bailouts.


Many believed that the union would get its best deal with GM or Ford, because of FCA’s situation, with its high percentage of lower-paid, second-tier workers (about 45%). The disagreement about alternative work schedules and significantly lower profit-sharing and bonuses was considered to be the most the most difficult topic to be reached with a tentative agreement.


UAW President, Dennis Williams, said in a statement on Sunday that “All three companies have been working with UAW bargaining teams toward a collective bargaining agreement and continue to do so.”


Yet, choosing Fiat Chrysler to be the leader in these discussions just means the union’s focus is actually Fiat Chrysler. It doesn’t mean that the automaker’s contracts will be copied by the others as each car manufacturer will carry their own stamps.