Fiat Chrysler contract in doubt

Nancy Marshall-Genzer Sep 29, 2015
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Fiat Chrysler contract in doubt

Nancy Marshall-Genzer Sep 29, 2015
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Fiat Chrysler workers are voting on a new contract this week. The vote is set to end on Wednesday.

There’s no guarantee that workers will approve the contract. One big sticking point is wages.

Workers don’t like Chrysler’s two-tiered wage system. Almost half the workers at Chrysler plants are in the lower-paid tier. Fiat Chrysler employees also want bigger bonuses.

“They basically feel, we’re owed something because we worked with the company during very difficult times and you’re stronger now, pay more,” says Dave Cole, chairman emeritus of the Center for Automotive Research.

Cole says, if the Fiat Chrysler contract is approved, it may not be a template for contracts at GM and Ford. That’s because they’re in a stronger financial position — Their workers want a piece of that.

“I think the Ford and GM workers  are going to say, ‘Yes, that’s fine for Chrysler, but we’re doing considerably better so we’re really owed more,’” says Cole.

Cole says negotiations are already underway at GM and Ford.

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