Report: FCA – UAW agreement could limit the salary gap between tiers

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According to the latest reports coming from several insiders, plant workers signed by the UAW and working for Fiat Chrysler Automobiles, the third largest US carmaker, would receive pay increases.

These salary hikes would act as a way of bridging the gap between the lower-paid Tier Two employees and the veterans though they would not move to completely eliminate the difference, sources say about the recent tentative agreement for the upcoming four-year labor bill. According to the people that have knowledge of the matter, but talked to Reuters under condition of anonymity, the salary gap between veterans and second tier employees would be of around $5 per hour at the end of the contract that awaits approval. The situation is still sensible, as the sources also said all union members have not been let in on the full contract details yet. The insiders did note that other salary incentives, such as bonus for quality and other features would assist the workers in further bridging the difference.

The UAW is expected now to brief all of its members on the details of the agreement with FCA and the members are then expected to vote its ratification in the coming weeks. If the contract gets approved, the UAW Fiat Chrysler workers would also receive $3,000 as a signing bonus – though the figure is now smaller than the $3,500 they received back in 2011 when the current contract was agreed upon. Fiat Chrysler has around 40,000 persons represented by the UAW union – with around 36,600 of them being plant workers who get their salary by the hour and are referenced in a two-tier salary structure.