Provisional Four Year Agreement between UAW and Fiat Chrysler Workers get

How the new labor rate will affect FCA’s total labor costs wasn’t immediately clear, since the contract may contain other provisions that save the automaker money, such as expanded flexibility to employ contract labor, which FCA has been seeking.

UAW website showed the deal was passed by salaried and hourly wage workers.

The deal does nothing to immediately alleviate the unpopular Alternative Work Schedule, which has forced members at affected plants onto four-day weeks of 10-hour shifts. Only at Belvidere, 83% of the production workers voted in favor of the agenda.

Norwood Jewell, Fiat U.S. vice president said: “UAW members at FCA have obtained a strong agreement that provides substantial wage gains, fairness in the workplace, and job security”.

The union will use the Fiat Chrysler deal as a template for talks with Ford and General Motors.

GM on Wednesday announced a record pre-tax profit of $3.1 billion, and an operating North American profit margin so far this year of 10.5 percent.

The conclusion of a contract without a strike and with little rancor would be a victory of sorts for both parties.

Numerous workers, like Melissa Adkins say it all comes down to family, “We put in a lot of hours and we spend a lot of time away from our families and they have to make it worthwhile for us”. It was unclear Thursday whether the union would pick one company to focus on or try to negotiate with both.

Since Ford has fewer Tier 2 workers than Fiat Chrysler, Ford may request to remove the cap in exchange for new hires and giving veteran workers better pay, McAlinden said.

Since 45 percent of Chrysler workers are in Tier 2, many had expected an immediate raise to $28 an hour.

The new contract includes the first pay increase in nine years for long-serving employees, as well a definitive path to higher wages for newer workers who started at much lower pay since the recession. After trading began at $15.15 the stock was seen hitting $15.35 as a peak level and $15.09 as the lowest level. Workers hired before 2007 will now get a $4,000 signing bonus, 3% raises in the first and third years of the contract and 4% raises in the second and fourth years of the contract.

Finalization of this labor deal is a great relief for Fiat. The previous contract promised $3,000 bonuses for all workers.