Fiat Chrysler deal with UAW narrows gap in hourly wages

Fiat Chrysler Automobiles would boost wages for all its United Auto Workers (UAW) members, giving senior employees their first raise in nine years and closing the pay gap for second-tier workers, according to the union’s highlights of the tentative four-year agreement.

Hourly base wages would increase over the contract term to $29.76 (U.S.) at the senior tier and to as much as $25.35 for the second tier, according to the UAW document.

UAW president Dennis Williams is seeking ratification of the tentative agreement he reached with Fiat Chrysler CEO Sergio Marchionne so he can move on to Ford Motor Co. and General Motors Co. to seek similar, but more lucrative deals.

“Back in 2007, we understood why we had to negotiate a dual-wage structure to address the historically dire financial problems Chrysler (and the other two Detroit automakers) went through at the time,” Williams and UAW vice-president Norwood Jewell said in the document. “But that was then and this is now.”

Senior assembly workers, who now make $28.05 an hour, would get 3per-cent increases of 84 cents for the first year and 87 cents for the third year. They also would get 4-per-cent lump-sum bonuses of $2,404 for the second year and $2,476 for the fourth year.

Second-tier workers, who have started at $15.78 and hour, would see that rise to $17 on ratification of the new agreement and to $22 in the final year. The highest hourly rate for such workers would climb to $24 on approval of the contract and to $25.35 by the last year.