(WJBK) - The United Auto Workers union said in a press release the tentative agreement with Fiat Chryslar US was overwhelmingly approved by the local union leaders on the UAW National Chrysler Council Friday. Now the tentative agreement will go before the nearly 40,000 UAW FCA members for a final vote.
"We returned to bargaining with a clear mandate to fight for a contract that gives all members a clearly defined path to fair pay and a decent standard of living - and we believe this contract delivers on that most important goal," said UAW President Dennis Williams. "We've secured a stronger contract. Our members will have the final word, and we look forward to the conversation and dialogue that will take place in the days ahead."
The details of the Tentative Agreement for UAW FCA members were outlined in the news release, which you can read below:
- Clear Path to Traditional Wages for In-Progression Members: All current in-progression members will be paid traditional wages within eight years. In-progression employees with four years of service will be paid traditional wages by the end of this contract - that's more than $10 per hour in wage increases for many. In-progression members with two years of service will receive more than $8 per hour in base wage increases by the end of the contract.
- First General Wage Increases in 9 years for Traditional Members: With two 3% wage increases and two 4% lump-sum bonuses, traditional workers will be taking home an additional $20,000 over the next four years.
- Health Care Unchanged: UAW FCA members will continue to pay no premiums for their healthcare, even as American workers at large employers pay an average of $1,648 in premiums for single coverage and $5,388 in premiums for family coverage.
- A Bigger Piece of FCA Profits with Improved Profit-Sharing: Our profit sharing pool will be funded based on the new formula of $800 for every 1% in North American profit margin. This profit sharing pool will be paid out based on each UAW-FCA member's uncapped compensated hours. In other words, the more hours you work, the bigger your share of the profit sharing pool will be.
- $3,000 and $4,000 Ratification Bonuses Secured: As soon as the contract is signed, traditional members will get a $4,000 up-front lump sum bonus and in-progression members will get a $3,000 payment.
- 401(k) Contribution Rate Raised to 6.4% for In-Progression Members: In-progression members will get more retirement security in this agreement. Thanks to an increase in the 401k contribution rate to 6.4% and large wage increases, FCA will be putting significantly more money into in-progression members' 401k retirement savings funds.
- $1.7 Billion in Pension Funding: Anticipated cash contributions of $1.7 billion from FCA.
- The Tentative Agreement also includes significant job protection measures for UAW FCA members, including $5.3 billion in investment commitments in the United States, details on job security commitments at each plant and a moratorium on outsourcing.
- Recognizing members' concerns on alternative work schedules, UAW and FCA will meet to consider other alternative schedules within 60 days of ratification of the Tentative Agreement. The Tentative Agreement includes improvements to 4X10 Alternative Work Schedules and 3/2/120 Alternative Work Schedules. For example, there are new limits on the number of consecutive Fridays that members on the four days at ten hours a day work schedules (4x10) can be required to work.
- "This is one of the biggest contracts that we've ever negotiated with FCA, and we look forward to hear from our members and move forward," said UAW Vice President Norwood Jewell. "This process has required patience and perseverance on all sides, but I believe this Tentative Agreement will strengthen our members, their families, their communities and our union."