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Fiat Chrysler Said to Double Use of Temp Workers in UAW Contract

  • More people at lower pay with few benefits offsets big raises
  • Union traditionally prefers companies hire full-time members

Fiat Chrysler Automobiles NV can double its use of lower-paid temporary staffers under a new labor agreement being voted on by the United Auto Workers union, said two people familiar with the matter. Savings from that concession helps offset big raises given to almost half of the company’s unionized U.S. hourly employees.

More than 250 pages into the tentative labor agreement between Fiat Chrysler and the Detroit-based union is language that lets the company use temps any day of the week instead of just Mondays, Fridays, weekends and holidays. That means FCA could double the use of temporary staff from 4 percent of work hours to 8 percent, said one of the people, who asked not to be identified because the estimate isn’t public. The new rules on temps weren’t in highlights distributed to union members, who are scheduled to vote on the deal next week.