Fiat Chrysler Reaches Tentative Agreement With UAW on Pact
- Agreement provides `pathway' to higher pay for newer members
- UAW broke tradition by dealing with weakest company first
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Fiat Chrysler Automobiles NV and the United Auto Workers reached a tentative agreement on a new contract that will be presented to members to vote on. The union will next seek deals with GM and Ford.
UAW President Dennis Williams and Fiat Chrysler Chief Executive Officer Sergio Marchionne hugged at a news conference Tuesday night in Detroit to celebrate the agreement, but they wouldn’t give much detail about the pact before union members had a chance to see it. They said the accord addresses the rising cost of health care, creates a “pathway” to higher wages for entry-level workers and eventually does away with the tiered-wage structure that created tension in the union.