Representatives from the United Auto Workers and Fiat Chrysler Automobiles agreed Tuesday to extend their contract on an “hour-by-hour” basis, Reuters reported. Workers reported Tuesday for their morning shifts, but those workers could walk out at any time if talks stall.
On Monday, it became clear that the UAW would set its sights on FCA and their larger share of Tier 2 workers — workers hired after the recession at a lower hourly wage — as the union aims to “bridge the gap” between the two tiers.
According to the report, the union may opt to strike, stage a limited walkout or continue negotiations if talks reach an impasse.
Tier 2 workers comprise 45 percent of FCA’s union workforce, according to reports. Those workers, on average make $8-$10 less per hour than veteran, Tier 1 workers.
Lower paid, Tier 2 workers comprise 28 percent and 20 percent of Ford and General Motors’ workforces respectively.
FCA chief Sergio Marchionne has said he’d like to abolish the tiered-pay system, but set a base pay lower than the top tier and establish a profit sharing program for FCA workers. Last month, in a candid interview with Automotive News, Marchionne acknowledged that he’s played, um, hardball with the UAW before.
The UAW extended its midnight deadline with Ford and GM to focus on negotiations with FCA, according to reports.
(Photo courtesy Toledo Blade)
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