Almost two-thirds of UAW members reject Fiat Chrysler deal

By a wide margin, workers have voted down a tentative contract agreement brokered by their union, the United Auto Workers (UAW), and Fiat Chrysler Automobiles (FCA).

Williams says in a statement that he doesn’t consider the vote a setback because it’s part of the contract process.

The automaker, formed out of Chrysler’s 2009 bankruptcy, said in a statement that “the cyclical nature of the automotive business demands that while we must recognize the need for rewarding employees during times of prosperity, we must also protect against the inevitable market downturn”.

Ford Motor Co.’s 23 percent advance marked its biggest increase in nearly five years, with deliveries rising 23 percent at the Ford brand and 20 percent at Lincoln.

UAW members at the Claycomo plant received notice that health and safety, staffing and seniority rights issues have not been resolved despite talks that began in April, the newspaper reported.

It was not clear whether the UAW will now pursue contract talks with GM and Ford.

Earlier this year, Ford started selling its all-aluminum F-150 pickup truck, solidifying the model’s status as best-selling truck in the U.S. The truck is produced at a Ford plant in Kansas City, by local union members who have threatened to strike. But the effort to trade off short term gains for long term security backfired.

But companies are fearful of raising their labor costs so that theyre not competitive with foreign automakers that have USA factories.

“The company will make decisions based on our industrial objectives, and looks forward to continuing a dialogue with the UAW”, the company said.

Those tier-two workers now top out at about $19 an hour versus $29 an hour for veteran workers. Although he is paid at the higher hourly rate, McCarthy said there “wasn’t any light at the end of the tunnel” for second-tier workers.

The company also said it will save about $5.5 billion in the next three years in efficiencies in manufacturing, administration and purchasing, more than offsetting its increased investments in brand development and technology. “The pay increases included in the contract are only those that we agreed to give up in 2009”.

“As it’s written, there’s not a chance” of a similar contract winning approval at GM, he said.

“They send the message that they can strike and they can make strikes work, but without putting all their workers out on the street for an extended period”, said Hurd. Or members could re-vote on the rejected pact. “The steps toward discipline are fewer and it’s easy for people to get into trouble, and could lead to firing”. “You sit down, listen to the membership and try to figure out is it just misunderstandings… and then go back to the drawing board”. The company has confirmed only that the Focus will move out of the Wayne plant.

A Fiat-Chrysler spokesman told Edmunds he could not provide details about which vehicles are involved in the investigation or answer any other questions at this point. “Plant operations will continue as scheduled”.