UAW Leaders Approve Richer Fiat Chrysler Contract

DETROIT (WWJ/AP) — Local United Auto Workers leaders have approved a new proposed contract with Fiat Chrysler.

Friday's vote came just over a week after UAW members voted down a previous agreement. The UAW and FCA hammered out a new contract, averting a threatened strike.

"We returned to bargaining with a clear mandate to fight for a contract that gives all members a clearly defined path to fair pay and a decent standard of living – and we believe this contract delivers on that most important goal," said UAW President Dennis Williams, in a media release. "We've secured a stronger contract. Our members will have the final word, and we look forward to the conversation and dialogue that will take place in the days ahead."

The new agreement promises to gradually eliminate a tiered pay system and bring all U.S. factory workers to the same pay level over eight years. The previous agreement promised to raise the wages of newer, lower-tiered employees to $25 per hour, which was still lower than the pay for longtime workers.

It also promises the first raise in nine years for the highest-paid workers.

[View Details of the Tentative Agreement]

Union members will now vote on the new agreement, which covers around 40,000 workers at 23 U.S. plants.

This is one of the biggest contracts that we've ever negotiated with FCA, and we look forward to hear from our members and move forward," said UAW Vice President Norwood Jewell. "This process has required patience and perseverance on all sides, but I believe this Tentative Agreement will strengthen our members, their families, their communities and our union."

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