Advertisement

UAW threatens walkout on Fiat Chrysler over expiring labor deal

By Doug G. Ware

DETROIT, Oct. 6 (UPI) -- The United Auto Workers union said its members may walk away from their jobs at Fiat Chrysler Automobiles on Wednesday night over an expiring labor deal.

UAW, which represents about 40,000 workers for Fiat Chrysler in the United States, said its members will strike if a new labor deal isn't reached by midnight Wednesday.

Advertisement

The two sides have been negotiating a new deal for weeks and reached a contract extension last month, but that extension expires Wednesday.

UAW informed Fiat Chrysler, in a letter, of their intention to walk out.

"This letter shall serve as formal notice provided by the [unions] of the union's termination of the aforementioned agreements, to be effective at 11:59 p.m. on Wednesday, October 7, 2015," it read.

A prior proposal from Fiat Chrysler for a new labor deal included wage hikes and bonus incentives, but the union doesn't like the fact that it continues to employ a two-tier wage structure that raises concerns among members about job security.

Although the deal initially received tentative approval by the union, UAW members formally rejected the automaker's offer last week -- even though UAW President Dennis Williams had resoundingly applauded the bargain.

Advertisement

It isn't clear why voters turned down a deal that their president had endorsed, but Williams pledged to members this week to do a better job communicating new contract details.

It was the first time in three decades that UAW, the largest union in the U.S. auto industry, refused a tentative labor agreement.

"The cyclical nature of the automotive business demands that while we must recognize the need for rewarding employees during times of prosperity, we must also protect against the inevitable market downturn," Fiat Chrysler said after the offer was rejected. "This agreement accomplished both of these objectives."

No progress toward ratifying any deal has been made since, leading some observers to believe striking a new deal before Wednesday night is unlikely.

Monday, UAW representatives met with Fiat Chrysler but left the bargaining session disappointed that the automaker was unwilling to improve its prior offer.

It remains unclear exactly where workers will strike if the midnight Wednesday deadline passes without an accord. The employees could strike against all 18 U.S. Fiat Chrysler plants, or they could target specific operations centers -- like an Indiana plant critical in the manufacture of Jeeps and Dodge Ram trucks, two major sellers for Fiat Chrysler.

Advertisement

No labor strike has occurred against a U.S. automaker since the Treasury Department authorized a massive bailout package at the height of the financial crisis in 2009. The terms of the bailout barred UAW from taking punitive action over labor grievances against automakers General Motors and Fiat Chrysler, but that stipulation was lifted this year.

Ford Motor Company and General Motors, also involved in ongoing negotiations with UAW over a new labor deal, also reached contract extensions last month. Those automakers, though, are waiting on the outcome of the Fiat Chrysler deal to use as a blueprint before they continue negotiating.

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement