With the tentative agreement between FCA and the UAW now expected to be approved by FCA’s rank and file, the 2019 Detroit Three UAW contract bargaining becomes history.
The big stories during this year’s negotiation were of course:
- The longest labor strike at GM in 50 years
- Fallout from the Chrysler-UAW corruption scandal that will continue for some time as the UAW has to deal with its now tarnished image
FCA, for the most part, followed the bargaining pattern set by GM and followed by Ford. Like GM and Ford, FCA agreed to $9 billion in future investments during the term of this contract. This included $4.5 billion in new product investment and previously announced investments of another $4.5 billion including a new plant built in Detroit. The FCA agreement is expected to create 7,900 new jobs.
FCA employees got a $9,000 signing bonus. This is the same bonus Ford agreed to for its production employees and $2,000 less than GM’s signing bonus of $11,000.
As with Ford and GM, FCA agreed to eliminate two-tier employment status by the end of this contract.
FCA employees did see their profit-sharing cap removed as well as an increase in the payout formula from $800 per 1% of profit margin to $900 per 1% of profit margin.
Wage increases negotiated follows the schedule set by GM and followed by Ford: Full-time top rate and skilled trades workers will receive 4% lump sum payouts and two 3% general increases during the term of this agreement.
One bone of contention between the UAW and the Detroit Three was the use of temporary workers. Like GM and Ford, the UAW gained some control over the use of temporary workers.
Additional ASE Resources
ASE is proud to once again host a special briefing for labor relations professionals, managers, and other interested management representatives to hear information about how and why the terms of these year’s contracts came to pass. This program gives representatives from auto suppliers and other union represented companies the opportunity to ask questions and gain insights in order to prepare for their own negotiations.
As soon as details are set, ASE will notify our members.