All workers move to Tier 1 pay within eight years

All workers move to Tier 1 pay within eight years.

UAW-FCA Tentative Deal Goes to Rank-and-File for Vote

The UAW says the tentative contract sets the course for a return to traditional wages at FCA, eliminating the 2-tier pay structure over the course of the next eight years.

The UAW National Chrysler Council overwhelmingly approves the tentative 4-year contract reached with FCA US this week, sending the pact to some 40,000 rank-and-file members for a vote, the union says.

The UAW says the tentative contract sets the course for a return to traditional wages at FCA, eliminating the 2-tier pay structure over the course of the next eight years.

The deal was reached just a few minutes after Tuesday’s 12 AM strike deadline, following the defeat of an early agreement in membership voting.

Key provisions of the agreement:

  • Tier 2 workers on the job for four years will receive Tier 1 pay by the end of the contract, a pay increase of more than $10 per hour for many. Workers with two years of service will see pay raised more than $8 per hour by the time the contract expires. All workers will be paid Tier 1 wages within eight years.
  • Tier 1 workers will see wages increase 3% and receive two 4% lump-sum bonuses, for a total of $20,000 in added income over the course of the 4-year deal.
  • No change in healthcare benefits.
  • An improved formula on profit-sharing. Employees who work the most hours will see the biggest bonuses.
  • A $3,000 ratification bonus.
  • Increased 401(k) contribution to 6.4% of pay.
  • Promise of $5.3 billion in investment in U.S. operations.
  • Limits on the number of consecutive Fridays employees must work when operating on 4-day, 10-hour shift schedules. The UAW and FCA will explore other work schedules within 60 days of the contract's ratification.
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