The tentative pact between the United Auto Workers and Fiat Chrysler Automobiles reached Tuesday evening may eventually end the two-tiered pay system for thousands of workers at the automaker, Reuters reported.
FCA chief executive Sergio Marchionne said the agreement would do away with the separate system “over time.” Roughly 45 percent of FCA’s workforce was hired at the lower, Tier 2 pay, which is roughly $9 less per hour than older, Tier 1 workers.
According to the report, raises for both classifications of workers would be likely, although details weren’t discussed.
Reuters also reported that the UAW’s health care agreement may broadly follow the “pooling” idea floated by Ford, General Motors and FCA last week. UAW retirees and their families are in a pooled, managed health care program established by the automakers to curb costs during the recession. It was expected that workers could eventually be folded into a health care co-op that could mimic the retiree plan, but it’s unclear if that was part of the UAW’s agreement with FCA.
The union’s pact with FCA could serve as a road map for further negotiations with GM and Ford.
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