"This agreement represents an investment in our US workforce and recognizes its contributions to the company's growth over the past six years." the automaker said in a statement. Now, the UAW must move forward on new arrangements with Ford and General Motors.
After members rejected the original offer, UAW president Dennis Williams (pictured above, right) was positive about the new deal's acceptance. "The resolve of our membership and the dedication of our negotiating team has produced an agreement that affords UAW members a strong wage package and job security while still allowing the company to competitively produce high quality vehicles for our customers," he said in a statement.
In contrast to the last offer, the new contract largely eliminates the two-tier wage system, and it's now it's possible to attain the same $29 per hour pay over eight years of employment. According to the Detroit Free Press, the deal also no longer limits FCA US from hiring entry-level workers. The original plan for a healthcare co-op across the Detroit automakers is also axed from the latest arrangement. While the strategy was supposed to lower costs, the potential changes weren't explained well to union members, and they rejected it.
Featured / Negotiations / October 22, 2015
DETROIT – The members have voted to ratify a new four-year collective bargaining agreement with FCA by a 77% majority. The results of the voting are as follows:
• Production workers – 77%
• Skilled Trades – 72%
• Salaried Bargaining Unit – 87%
President Williams stated, "The recent bargaining process that took place on behalf of our members at FCA is a testament to the UAW's democratic values and commitment to our members. The resolve of our membership and the dedication of our negotiating team has produced an agreement that affords UAW members a strong wage package and job security while still allowing the company to competitively produce high quality vehicles for our customers."
"UAW members at FCA have obtained a strong agreement that provides substantial wage gains, fairness in the workplace, and job security. Because of the strength and support from our membership, our bargaining team was able to negotiate a contract which promises a secure future for our members, their families and their communities." UAW FCA US Vice President Norwood Jewell said.
FCA US Statement Regarding UAW Member Approval of New Collective Bargaining Agreement
FCA US is pleased that UAW members have voted to ratify a new four-year national labor agreement. This agreement represents an investment in our U.S. workforce and recognizes its contributions to the Company's growth over the past six years. With the bargaining process now complete, the Company and our employees can look forward to continuing to build world class products, investing in our operations and achieving the targets set out in our five year business plan.