Fiat Chrysler avoids strike with new tentative contract

Although the deal initially received tentative approval by the union, UAW members formally rejected the automaker’s offer last week – even though UAW President Dennis Williams had resoundingly applauded the bargain.

A message was left Tuesday for a UAW spokesman.

The union, in a statement, said its bargaining committee “secured significant gains” in the new agreement.

A walkout would have been a risky bet for Williams, who failed to win membership support for the last proposal, which would have given factory workers raises, bigger profit-sharing checks and a $3,000 signing bonus.

The union gave Ford a required five-day strike notice on Tuesday after failing to reach a local labor deal.

“I wouldn’t be surprised to see this wrapped up in a day or two”, said Charles Ballard, professor of economics at Michigan State University. As the night wore on, workers seemed primed to walk as they awaited word. Assuming they approve it, it will then be presented to union members again for ratification. No one else has to pay the price of a strike.

Fiat Chrysler’s minivan plant in Windsor, Ontario, which is across the river from Detroit, would also be affected within days of a strike at USA plants, the president of the Canadian union, Unifor, told the Windsor Star newspaper. Tier-2 entry-level workers hired after 2007 are compensated at $9 to $12 less than the hourly rate of so-called Tier-1 veteran workers who make $28 an hour.

It remains unclear exactly where workers will strike if the midnight Wednesday deadline passes without an accord. The United Auto Workers has been banned from striking at that company and at Fiat Chrysler since 2009, as part of a federal government-led agreement to save the automakers from bankruptcy. They were extended before their scheduled expiration on September 14.

The threat of a strike is looming as Fiat Chrysler and the United Auto Workers continue negotiating a new contract.

Members voted overwhelmingly to authorize a strike after that.

Many union members have been agitating for a strike, almost since negotiations began.

If the union feels it is making progress, it could reverse course and extend the contract, said labor experts.

At about 45 percent, Fiat Chrysler has the largest percentage of hourly workers at the second-tier wage rates.

However, auto analysts feel the Kokomo plant has emerged as a likely target in any strike action as its transmissions are used in many of Fiat Chrysler’s most popular and profitable vehicles.

Management at Fiat Chrysler did not comment on the deal other than to confirm it had been reached.