UAW union leaders recommend approval of Fiat Chrysler labor deal




UAW union leaders recommend approval of Fiat Chrysler labor deal


DETROIT (Reuters) - United Auto Workers leaders from Fiat Chrysler Automobiles NV's (MI:FCHA) (N:FCAU) U.S. plants on Wednesday recommended approval of a tentative labor agreement that would allow the Italian-American automaker to avoid a strike as it works to merge with France's Groupe PSA. (PA:PEUP)

Fiat Chrysler (FCA) and PSA, the maker of Peugeot and Citroen, in October announced a planned $50 billion merger to create the world's fourth-largest automaker.

The tentative four-year agreement with FCA, reached last week, must now be ratified by the 47,200 UAW members at the company, with voting set to begin Friday. The deal follows contracts the UAW already concluded with larger rivals General Motors Co (N:GM) and Ford Motor Co (N:F).

FCA declined to comment on Wednesday.

The UAW previously said the contract included a commitment by the automaker to invest $9 billion, creating 7,900 new jobs over the course of the contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs.

The investments include $2.8 billion at Warren Truck Assembly plant to build a new a plug-in hybrid SUV in 2021 and a potential increase of 1,500 jobs.

FCA will also invest $160 million at its Toledo plant to build a new plug-in hybrid Jeep Wrangler next year, and $3 billion at its Jefferson Assembly plant in Detroit to a build a plug-in hybrid Jeep Grand Cherokee in 2021 among other new vehicles.

While the deals with GM and Ford were approved, ratification is not a sure thing, as union members at FCA in 2015 rejected the first version of a contract. In addition, a federal corruption probe related to embezzlement at the union could also raise doubts among union members about the deal's terms.

UAW members must complete voting by Dec. 11.

The federal corruption probe led GM to file a racketeering lawsuit against FCA, alleging its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless.

The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion.

Detailed terms of the FCA deal echoed those agreed to with GM and Ford as the union typically uses the first deal as a template for those that follow.





Related News

NFL notebook: Giants officially give Manning starting nod
Today, 02:09
Eli Manning will start at quarterback for the New York Giants against the Philadelphia Eagles on Monday night in place of rookie Daniel Jones, who has been ruled out with a high-ankle sprain, the team announced Saturday. Manning, 38, has not started
North Korea carries out 'very significant' test at satellite launch site: KCNA
Today, 02:06
SEOUL (Reuters) - North Korea has carried out a "very significant" test at its Sohae satellite launch site, state media KCNA reported on Sunday, a rocket testing ground that U.S. officials once said North Korea had promised to close. The
Australian firefighters try to control bushfires ahead of hot days
Today, 02:03
By Lidia Kelly MELBOURNE (Reuters) - Firefighters in eastern Australia used easing weather conditions on Sunday to bring bushfires under control ahead of forecast of soaring temperatures for next week. There were 96 fires burning in New South Wales,
Hong Kong gears up for mass rally as government appeals for calm
Today, 01:03
HONG KONG (Reuters) - Hong Kong was gearing up for a mass rally on Sunday that is expected to gauge support for pro-democracy demonstrations in the Chinese-ruled city as the government appealed to people to express their views peacefully. Police
Shooting near Mexico's presidential residence leaves four dead - local media
Today, 00:06
MEXICO CITY (Reuters) - A shooting on Saturday near Mexico's National Palace, the president's residence in the capital's historic downtown, has left four people dead and two people injured, Foro TV reported. Mexican President Andres



Latest News
NFL notebook: Giants officially give Manning starting nod
08.12.2019 02:09
Eli Manning will start at quarterback for the New York Giants against the Philadelphia Eagles on Monday night in place of rookie Daniel Jones, who has been ruled out with a high-ankle sprain, the team announced Saturday. Manning, 38, has not started since Week 2. He passed for 556 yards, two touchdowns and two interceptions before the Giants
Read more
North Korea carries out 'very significant' test at satellite launch site: KCNA
08.12.2019 02:06
SEOUL (Reuters) - North Korea has carried out a "very significant" test at its Sohae satellite launch site, state media KCNA reported on Sunday, a rocket testing ground that U.S. officials once said North Korea had promised to close. The KCNA report did not specify what was tested, but the site has previously been used to launch rockets
Read more
Australian firefighters try to control bushfires ahead of hot days
08.12.2019 02:03
By Lidia Kelly MELBOURNE (Reuters) - Firefighters in eastern Australia used easing weather conditions on Sunday to bring bushfires under control ahead of forecast of soaring temperatures for next week. There were 96 fires burning in New South Wales, home to Australia's largest city of Sydney, with only about a half contained and more than
Read more
Hong Kong gears up for mass rally as government appeals for calm
08.12.2019 01:03
HONG KONG (Reuters) - Hong Kong was gearing up for a mass rally on Sunday that is expected to gauge support for pro-democracy demonstrations in the Chinese-ruled city as the government appealed to people to express their views peacefully. Police gave the green light to Civil Human Rights Front (CHRF) - organizer of largely peaceful million-strong
Read more
Shooting near Mexico's presidential residence leaves four dead - local media
08.12.2019 00:06
MEXICO CITY (Reuters) - A shooting on Saturday near Mexico's National Palace, the president's residence in the capital's historic downtown, has left four people dead and two people injured, Foro TV reported. Mexican President Andres Manuel Lopez Obrador was traveling on Saturday.
Read more