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FCA returning to single wage?

by David Zatz on

Bloomberg News has reported that the new FCA-UAW contract would raise “second tier” (2009 and newer) employees’ salaries up to $29 per hour, up from the original $25 per hour deal, bringing them extremely close to senior workers’ pay — after eight years. The deal would still have no cap for the “Tier 2” (lower pay) workers.

Because the company had been cut so deeply under Daimler and then Cerberus, and has grown so much since, FCA US has more “Tier 2” employees than GM or Ford — 45% of the hourly workforce is on the lower pay schedule.

The UAW brought FCA back to the negotiations with the threat of a strike, which would have started tomorrow, throughout the FCA US factory network (though possibly not at every site). FCA US does have  76 days worth of cars on inventory, but certain models are selling well enough to keep their plants on overtime — particularly Jeep Wrangler.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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