UAW-FCA contract faces resistance from key union locals
Voting on the proposed four-year deal between Fiat Chrysler and the UAW has met with rejections at major plants, raising the risk of a difficult ratification process.
Several of the United Auto Workers’ largest locals have rejected the proposed four-year contract with Fiat Chrysler Automobiles, casting doubt over the deal’s approval as voting continues across the company’s US plants.
By late Thursday, union members at key FCA facilities in Sterling Heights, Center Line and Kokomo, Indiana had voted against ratifying the agreement. These plants represent a substantial portion of the approximately 40,000 UAW-represented FCA workers whose majority approval is needed for the contract to take effect.
Major plants reject contract terms
At UAW Local 1166, which covers workers at the Kokomo Casting Plant, 59% of production staff voted to reject the proposed terms, with skilled trades workers evenly split. Sterling Stamping’s Local 1264 reported 57% of production workers and 61% of skilled trades workers voting no. Members of Local 1248, representing FCA’s Mopar parts and distribution centre in Center Line, also turned down the deal.
Salaried workers at six Kokomo facilities, represented by Local 1302, did approve the contract, according to the local’s president. However, the outcome at the larger production and skilled trades locals carries more weight in the overall ratification process.
What’s at stake for FCA and the UAW
If the contract fails to pass, it could disrupt the UAW’s broader strategy for negotiating with the Detroit Three, General Motors, Ford and FCA. The union typically uses an agreement with one automaker as a template for the others, so rejection at FCA could force a return to the bargaining table and delay settlements across the industry.
The proposed deal’s details have not been published in full, but union members at the rejecting locals have expressed concerns about pay progression, health care and job security. The outcome of the ongoing votes at the remaining 37 locals will determine whether the agreement stands or falls.
Next steps in the ratification process
Voting is scheduled to continue through the middle of next week. If the majority of FCA’s UAW-represented workforce votes no, both sides may need to renegotiate terms before a new deal can be reached. The result will set the tone for the rest of the Detroit Three’s contract talks and could have knock-on effects for workers, production schedules and future labour relations.
- UAW Local 1166 (Kokomo Casting): 59% production workers voted no
- UAW Local 1264 (Sterling Stamping): 57% production, 61% skilled trades voted no
- UAW Local 1248 (Mopar Center Line): majority voted no
- UAW Local 1302 (Kokomo salaried): approved contract
