UAW-Fiat Chrysler pact raises pay, profit-sharing
DETROIT (AP) — Hourly pay, profit sharing and performance bonuses will rise, but car production will move to lower-cost Mexico and be replaced by trucks and SUVs under a new contract between Fiat Chrysler and the United Auto Workers.
The deal, reached Tuesday, has been criticized by some workers on social media sites, but UAW President Dennis Williams said it achieves union goals of giving entry-level workers a path to higher pay, rewarding members for sacrifices made while FCA struggled financially, and dealing with escalating health care costs.
All workers get bigger checks than in the past, dependent on Fiat Chrysler's North American full-year profit margins.
To help pay for the raises and reduce FCA labor costs, car production with lower profit margins would be shifted to Mexico, where auto assembly wages are around $6 per hour.
Plants that lose car production would start making SUVs and trucks, including new products to preserve jobs.
[...] there's agreement in principle to form a giant health care pool to get bulk discounts from health care providers.
Pool could include the UAW-run trust that pays bills for 600,000 retirees and spouses, plus 551,000 active employees and families from FCA, GM and Ford.
