UAW ratifies 4-year contract with Chrysler

UAW FCA US members ratified the 2019 Collective Bargaining Agreement by overall 71 percent the UAW announced Wednesday night.

It was approved with 74 percent hourly, 59 percent by skilled trades and 67 percent by the salary bargaining unit. 

“Every full-time production employee currently at FCA will be at top rate by the end of this four-year agreement,” said Cindy Estrada, UAW Vice President and Director of the UAW FCA Department. “All temporary workers now have a defined pathway to full time and top pay as well.”

The pattern agreement provides a pathway for temporary and full-time workers to top pay; creates parity on full-time worker health care; adds coverage for prescription drug costs for temporary workers; includes a signing bonus and wages that are consistent with pattern; and adds $4.5 billion in new investment in addition to the previously announced $4.5 billion investment that includes a new Detroit plant.

The ratified contract also includes an economic package of a $9,000 per full-time member signing bonus, performance bonuses, two 3 percent annual raises and two 4 percent lump-sum payments and holds the line on out-of-pocket health care costs.

“It is not easy in pattern bargaining to be the final Detroit 3 contract,” said UAW President Rory Gamble. “It means a much longer period of negotiating. Our negotiating team at the UAW and those local national negotiators were able to keep pattern and consequently negotiate a contract that will lift many lives during the life cycle of this contract. They are to be congratulated for their focus and perseverance.”

According to FCA:

·         The New agreement builds on Company’s success with $9 billion in investment and creates 7,900 new or secured jobs

·         FCA has created more UAW-represented jobs than any other OEM and exceeded investment commitments since 2015 agreement

Below is the official release.

December 11, 2019, Auburn Hills, Mich. - FCA confirmed today that its UAW-represented workforce has ratified a new four-year collective bargaining agreement that builds on the Company’s commitment to grow its U.S. manufacturing operations by providing for total investments of $9 billion and the creation of 7,900 new or secured jobs.

“We wouldn’t be the company we are today without the contributions of our UAW-represented workforce, and this contract recognizes and rewards their dedication in helping us achieve that success,” Mark Stewart, Chief Operating Officer, FCA North America, said. “Working with the UAW, we are pleased to have reached a new agreement that allows us to continue our record of adding good-paying UAW-represented jobs, building strong families, investing in our communities and offering exceptional vehicles to our customers.”

Over the past four years, FCA has created 6,500 new UAW-represented jobs, more than any other OEM, and invested more than $8 billion in its U.S. operations, exceeding its 2015 commitments. As part of the new agreement, FCA has committed to further expand its manufacturing capacity in the U.S. with $9 billion in total investments. 

The Company is doubling up on the $4.5 billion investment it previously announced in February 2019, which included investments in five existing Michigan facilities and the construction of a new state-of-the-art, sustainable assembly plant in Detroit. These investments will support the production of two new Jeep® brand vehicles and the next-generation Jeep Grand Cherokee, as well as electrified models. 

In total, the company will add nearly 6,500 new jobs at these facilities, including 5,000 in the city of Detroit.The additional $4.5 billion will support upgrades to products or processes across FCA’s U.S. manufacturing footprint in Michigan, Ohio, Indiana and Illinois, increasing employment by another 1,400 jobs.

The new collective bargaining agreement covers more than 47,000 UAW-represented employees at 22 FCA manufacturing facilities, as well as 17 Mopar Parts Distribution Centers across the country.