Auto workers union approves new 4-year labor contract with Fiat Chrysler

DETROIT, Oct. 22 (UPI) -- The largest union in the U.S. automobile industry has approved a new labor agreement with Fiat Chrysler after weeks of negotiations and an averted strike, the organization announced Thursday.

The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as United Automobile Workers, ratified the new four-year collective bargaining agreement with a 77 percent majority of its production staff.

The previous agreement expired in September and a brief extension allowed the union to continue working. UAW threatened a strike earlier this month amid stalled negotiations -- a labor stoppage that would have severely impacted critical plant operations for the automaker.

A prior proposed deal from Fiat Chrysler received a tentative agreement and was even applauded by UAW President Dennis Williams, but voting members subsequently rejected it -- primarily due to a two-tiered wage structure that failed to address the union's concerns about job security.

UAW said in addition to the deal's 77 percent approval from production workers, 72 percent of skilled trade workers and 87 percent of its bargaining unit also signed off on the new deal.

UAW represents about 40,000 workers for Fiat Chrysler in the United States.

"The resolve of our membership and the dedication of our negotiating team has produced an agreement that affords UAW members a strong wage package and job security while still allowing the company to competitively produce high quality vehicles for our customers," Williams said Thursday.

"UAW members at FCA have obtained a strong agreement that provides substantial wage gains, fairness in the workplace, and job security," union vice president Norwood Jewell said.

Going forward, the new agreement will have far-reaching implications not only for Fiat Chrysler -- but also for Ford Motor Company and General Motors, who are also engaged in talks with UAW for a new labor deal. The automakers have been waiting for the new contract with Fiat Chrysler to use as a blueprint in their own negotiations.

"This agreement represents an investment in our U.S. workforce and recognizes its contributions to the Company's growth over the past six years," Fiat Chrysler North America said in a news release Thursday. "With the bargaining process now complete, the Company and our employees can look forward to continuing to build world class products, investing in our operations and achieving the targets set out in our five year business plan."