Fiat Chrysler in contract negotiations with UAW

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As officials work on an agreement, Fiat Chrysler Automobiles NV will set the record for contracts of 141,000 United Auto Workers at the Detroit automakers.

Fiat was chosen by the union to set the pattern for negotiations and important issues such as labor costs, health care and raises. The automaker is also responsible with finding a solution to the two tier system dating back to 2007 that even though saved the auto industry created a breakage in the factories. Fiat’s statement resumed at confirming that the brand is the lead company in the negotiations.

All through Monday, teams of UAW, Fiat Chrysler, General Motors Co. and Ford Motor Co. continued their tentative to reach a deal. It was the first year in which workers at Fiat Chrysler and GM were legally permitted to strike, as part of the companies’ taxpayer bailouts.

Many believed that the union would get its best deal with GM or Ford because Fiat, given its high percentage of lower-paid, second-tier workers accounting for 45%. Moreover, the disagreement about alternative work schedules and significantly lower profit-sharing and bonuses were found to be the really difficult to deal with in terms of reaching a tentative agreement. Yet, the choice of Fiat Chrysler meant that the focus would mainly be on Fiat Chrysler, not that the automaker contract will be copied by the others as each automaker will run through their separate processes and discussions.

UAW President, Dennis Williams, said in a statement that “All three companies have been working with UAW bargaining teams toward a collective bargaining agreement and continue to do so.”