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That was quick: FCA, UAW seem to have a contract

by David Zatz on

Today, FCA released this barebones statement: “FCA confirms that the Company and the UAW have reached a tentative agreement on a new four-year contract. Further details will be provided at a later date.”

General Motors’ agreement took far longer to reach, but then, GM had stocked up on three months’ worth of vehicles and parts before reaching the table; the larger company was trying to get health insurance concessions while the union was demanding that four closed plants be reopened. The strike ended when GM largely gave up on its own demands and agreed to new product, eventually, for one of the American plants.

FCA, in contrast to GM, has been bringing jobs from Mexico and elsewhere back to the United States, and is currently building a large assembly plant within Detroit. This likely made negotiations easier. Regardless, the second or third company to negotiate a deal with the UAW usually has an easier time, because the pattern is set by the first contract—in this case, GM’s.

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