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Contract payoffs in the small print

by David Zatz on

The UAW contract does not provide a great deal for hourly members in terms of raw compensation, but it does go after a number of smaller issues that may be important for the rank and file.

One example is the use of third-party suppliers at Trenton Engine and Dundee, to do work normally done by normal employees; the contract brings these jobs back to FCA employees when the supplier contracts end (or beforehand if there are no penalties).  The company agreed to a moratorium on outsourcing for the duration of the contract (four years). This is easy for FCA, which has tended to bring work back in-house.

Both Dundee and Trenton Engine had exceptions to the national agreement which have been eliminated, and at Dundee, which has seen one plant shut and another run to maximum overtime, FCA agreed to provide relief from forced overtime. In addition, the “overused plant exemption” from 2011 is being dropped.

For all workers, there will be double-time pay for holidays, rather than only for those not on seven day per week operations. Retirees will get a $1,000 car voucher, as well, and will be able to use the legal services plan.

Workers who come to FCA from military service will gain seniority and, for returning military personnel, will get credit for missed pay periods. Those on short-term active military duty will be compensated for up to 30 scheduled working days in case of public emergencies (up from 15).


The company is providing a ride-sharing program to ease parking and cut worker costs.

A new relocation program provides $20,000 more to those who have to move to chase their jobs, due to factory closings and such.

As noted earlier, vacation days can now be taken one at a time if desired, e.g. to get multiple three-day weeks rather than a full week off, and those regularly working on Saturdays will get time-and-a-quarter for Saturday hours. For those on ten-hour, four-day weeks, there are limits on working multiple consecutive Fridays.  Sunday work will garner double-time.

There were numerous additional protections to health and safety, including improvements to emergency response teams.

Profit sharing is based simply on the profit margin — profit divided by sales. All employees get $800 for every 1% in profit margin generated in North America (once a profit margin of 2.0% has been achieved), with an extra bonus for Tier 2 (lower-paid) workers once margins hit 8.0% — $1,000 for 8-8.9%; $2,000 for 9-9.9%; and $4,000 for 10% and above. The new profit sharing would become effective in January 2016, with the first payout in 2017.

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