UAW: Fiat Chrysler to be lead target in auto talks

UAW: Fiat Chrysler to be lead target in auto talks photo UAW: Fiat Chrysler to be lead target in auto talks

The UAW’s current four-year contracts with the Detroit 3 expire on Monday, September 14.



While UAW President Dennis Williams has said he doesn’t want a strike, all three automakers are facing that possibility.

For decades, the UAW has selected one company with which to negotiate. “All three companies have been working with UAW bargaining teams toward a collective bargaining agreement and continue to do so”.

FCA officials had no comment other than to confirm the company is the lead in ongoing talks. Only around 20 percent of workers at Ford and GM make the lower wage. Adding UAW retirees to the pool would mean a collective about 1 million strong. FCA’s hourly workforce of 37,000 is 45 percent comprised of entry-level Tier 2 workers earning slightly more than half the wages and benefits of veteran workers.

GM has 51,000 hourly workers who are looking for a new four-year contract.

But automakers want to cut labor costs to stay competitive.

Williams and FCA CEO Sergio Marchionne, who greeted each other with a hug as the negotiations began in July, both say they would consider it a failure if they can’t reach a contract agreement and workers strike.

This is the first time since 2009 that all three automakers can legally call strikes.

UAW leaders have rallied members by saying “this is our time” to reap rewards for workers after three rounds of concessionary contracts since 2007. The Detroit Three are recording robust profits in North America. But any increase in fixed costs caused by closing that gap would hit FCA particularly hard because it is by far the least profitable of the Detroit automakers. FCA is the only one of the Detroit Three whose USA labor costs are lower than foreign competitors like Toyota, according to the Center for Automotive Research.

Leave a Reply