Fiat Chrysler And United Auto Workers Reach New Tentative Agreement

NPR | By Marie Andrusewicz

Published October 8, 2015 at 1:27 AM EDT

United Auto Workers President Dennis Williams (from left), Ford Motor Co. President and CEO Mark Fields and Ford Executive Chairman William Clay Ford Jr. at the opening of contract negotiations last July in Detroit.

Avoiding a possible strike, the United Autoworkers Union and Fiat Chrysler Automobiles have reached a tentative agreement on a new contract.

According to a statement from UAW:

"After a lengthy bargaining process, your UAW FCA National Bargaining Committee has secured significant gains in a proposed Tentative Agreement with FCA announced today.

"The bargaining committee unanimously voted to send the proposed Tentative Agreement to local union leaders who make up the union's UAW National Chrysler Council."

The statement adds that the UAW Chrysler Council will meet in Detroit at 11 a.m. Friday to vote on the agreement.

Union members rejected a tentative deal with Fiat Chrysler last week, apparently angered that the company had failed to restore benefits lost in previous contracts. Members objected to a two-tier pay structure that pays senior employees significantly more, and Fiat Chrysler's failure to offer workers cost-of-living pay increases.

The UAW represents approximately 40,000 Fiat Chrysler workers in the U.S. The UAW has not struck U.S. automakers since since 2007.

UAW's contract with Fiat Chrysler expired last month.