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Fiat Chrysler Agrees to Costly Pay Bumps for Lower-Wage Workers

Dec. 4, 2019
The agreement is part of Fiat-Chrysler's ongoing negotiation with UAW, and would also include a pathway to full-time status for temporary workers.

Fiat Chrysler Automobiles NV agreed to pay $29,500 in wage increases and bonuses to the typical United Auto Workers member over the next four years, according to a summary of a pact reached with the union last week.

The hefty average disbursement is a result of significant concessions Fiat Chrysler made to the UAW to boost wages for less-senior and temporary employees.

Newer hires that started at lower wages and have been progressing up the pay scale will reach the top hourly rate by the end of 2023, according to people familiar with the tentative agreement the company and union clinched Nov. 30. Fiat Chrysler will also open up the pathway for temporary workers to reach full-time status, said the people, who asked not to be identified ahead of a UAW vote on the proposed pact.

The UAW’s national Fiat Chrysler council is meeting in Detroit on Wednesday to decide whether union locals should vote on the new four-year contract. If the council gives its blessing, members will start casting ballots Dec. 6. While the union hasn’t yet released a summary of the deal, workers have started to circulate images of select pages on social media, including one describing the typical raise and bonus payout.

About 59% of Fiat Chrysler’s U.S. workforce are “in-progression” and 13% are temps, Chief Executive Officer Mike Manley told analysts during an Oct. 31 earnings call. Because those percentages are much lower at both General Motors Co. and Ford Motor Co., the pay bumps will have a greater impact on Fiat Chrysler’s labor costs.

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