UAW leaders approve richer Fiat Chrysler contract
Source: AP
By DEE-ANN DURBIN
DETROIT (AP) The United Auto Workers union unveiled a richer proposed contract with Fiat Chrysler on Friday, a week after angry union members voted down a previous agreement.
The new agreement would gradually eliminate a much-maligned tiered pay system and bring all U.S. factory workers to the same wage over eight years. The previous agreement had only promised a top wage of $25.35 per hour for lower-tiered workers by 2019, which is less than the $29.76 per hour that longtime workers would make at that point.
The union agreed to lower wages for new hires in 2007, a few years before Chrysler fell into bankruptcy protection. But members have resented the varying pay, and the company's current CEO, Sergio Marchionne who took over when Chrysler merged with Italian automaker Fiat in 2009 has called the two-tier wages "unsustainable."
UAW President Dennis Williams said the union had always promised to bridge the gap in pay, but he understood that members wanted to see exactly how that would be accomplished. Under the new agreement, workers with four or more years of experience would make the $29 hourly wage within four years; workers with less experience would make between $22.50 and $28 in four years and top wages in eight years.
FULL story at link.
Read more: http://bigstory.ap.org/article/63a7ab7b9e4d4381972bdf0839ceb419/uaw-leaders-approve-richer-fiat-chrysler-contract
forest444
(5,902 posts)And this is what it looks like without them:
http://www.democraticunderground.com/110843593
KentuckyWoman
(6,679 posts)Pulling up wages for the newer workers is important - great work. I would not be shocked though if the company accelerates the already planned plant closings and layoffs to offset.
The "cost sharing" on healthcare is still in place and looks like retirees on pensions no cost of living raise either. Considering what the market has been doing I'd like to see the contract get the retirees something.
But it's something.
Skeeter Barnes
(994 posts)JustABozoOnThisBus
(23,338 posts)and no way to make up the losses.
But it's an improvement.
Maybe next time ...