Cliff Banks - The Banks Report

UAW Says No to FCA

October 1, 2015 — United Auto Worker leaders flew into Detroit this morning to discuss options following the union’s rejection of the proposed new labor contract with Fiat Chrysler Automobiles.

The rejection heightens the possibility that the UAW will strike within the next few days. Leaders are still meeting in Warren, MI this evening.

Basically, the union has four options:

  • Resume negotiations with FCA;
  • Call for a national strike;
  • Choose one plant to strike at;
  • Begin negotiating with either Ford or General Motors and settle on a deal with one or both before returning to FCA.

Between 65% to 70% of FCA’s nearly 40,000 labor workers reportedly voted against the deal which would have given them a $3,000 signing bonus along with giving entry-level workers raises from $17 to $25.35 per hour. Meanwhile, workers hired before 2007 would have received two bonuses and two 3% wage increases over the next four years.

The deal also would have created a health care cooperative that would have given employees access to much better health insurance rates.

More analysis is available to premium subscribers of The Banks Report here. 

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