Following the labor deals with Detroit automakers, General Motors (GM), and Ford Motor Company, the United Automobile Workers (UAW) has approved a profitable labor deal with Fiat Chrysler Automobiles (FCA) recently.
According to the deal approved by UAW leaders, FCA has agreed to invest $9 Billion in the US-based manufacturing projects. This giant investment capital also encloses the most-awaited investments worth $4.5 Billion which were announced previously. The American-Italian automaker has also agreed to create nearly 7,900 jobs for the US workers over the contract course. The deal was patterned same as the recent deals with Ford and GM. The company has decided to give ratification bonuses worth $9000 which are not the same as Ford workers as they receive $11,000 as a ratification bonus but it equals the payment given to Ford workers. FCA also agreed on various factors such as providing better healthcare coverage, to give 4% lump-sum bonuses or 3% raises per year, and increasing profit-sharing payments.
Fiat Chrysler has also planned to close a joint-ventured axle plant in Michigan. UAW expects that the plant should be further operated by ZF Friedrichshafen, the German supplier, or else the current employees must be offered jobs at other FCA or supplier facilities. The ratification deal between UAW and FCA is not guaranteed due to the increasing tensions of voting and negotiation. Adding to this, FCA is also having plans of creating a merger with Peugeot Société Anonyme (PSA) group.
Meanwhile, the ongoing federal probe about corruptive deal between FCA and UAW has resulted in resignations from two chief union officials, including Gary Jones, UAW President. It also led to conviction of three FCA executives and eight other UAW officials. To make voting more complex, GM has also filed a federal lawsuit against FCA for corruptive negotiations with UAW officials. GM has accused FCA of bribing UAW officials for considering unfair labor deal along with other operational benefits.
Keenly understanding the world of technology and the capability to play with words, Thomas Cramer holds the position of Senior Content Writer. He writes reports and news of the tech world comprising, but not limited to, launches, upcoming & latest events, updates, releases, and so on in a flabbergasting manner. Being a technology freak, Thomas also puts forth his opinions and reviews about the new devices, gadgets, and other technologies & their implementations. Trekking, hiking, and reading books are a few of the free-time activities of Thomas.