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Fiat Chrysler in Weaker State Is Surprise UAW Talks Target

  • Union usually selects strongest company to achieve best deal
  • Break with tradition shows desire to maintain pattern
Bloomberg business news

A Surprise UAW Chose Fiat Chrysler for Negotiations?

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The United Auto Workers chose Fiat Chrysler Automobiles NV, the weakest of the Detroit Three carmakers, as the surprise target for negotiating a new labor agreement, indicating a high priority on having fundamentally similar contracts with all three companies.

The choice bucks the union’s tradition of choosing the strongest company among Fiat Chrysler, General Motors Co. or Ford Motor Co. to extract the best terms for its 140,000 members, a process known as pattern bargaining. This year’s dynamics were unusual because Fiat Chrysler laid bare its need for a merger partner.