Fiat Chrysler and the UAW reach tentative labor deal

UAW Fiat Chrysler

UAW-FCA reach proposed tentative deal on new four-year contract

Fiat Chrysler on Saturday announced that it has reached a tentative deal with United Auto Workers for a four-year labor contract.

Fiat Chrysler is the last company to settle on a new contract with the union.

Fiat Chrysler has agreed not to close assembly plants during the life of the contract and to assign new product to its factory in Belvidere, Illinois, that makes Jeep Cherokee sport utility vehicles and employs nearly 3,700 hourly workers.

FCA and the UAW have not released full details of their tentative agreement, but the union indicated that it generally reflected the deals negotiated with GM and Ford.

If adopted as a tentative agreement, it will go to all FCA hourly and salary members for a ratification vote that will begin on December 6, 2019, according to a statement from the UAW. If adopted as a Tentative Agreement, it will go to all FCA hourly and salary members for a ratification vote that will begin on December 6, 2019, a UAW spokesman said.

The factory officials are expected to meet next week to vote on the deal. The announcement of the agreement follows United Auto Workers' already concluded contract with General Motors and Ford. Boston Partners' holdings in Fiat Chrysler Automobiles were worth $19,837,000 as of its most recent filing with the Securities and Exchange Commission.

Fiat Chrysler Automobiles (NYSE:FCAU) last released its quarterly earnings data on Thursday, October 31st.

As with GM and Ford, talks with Fiat Chrysler began in July.

Fiat Chrysler in past years has enjoyed a labor-cost advantage compared with Ford and GM. That compares with an average of $50 per hour at US plants owned by foreign-based automakers.

General Motors alleges that the move, which it contends cost it billions of dollars, was aimed at forcing a merger with Fiat Chrysler that was desperately sought by FCA CEO Sergio Marchionne, who died in 2018.

It also comes almost a month after Fiat Chrysler announced plans to merge with French automaker PSA Group. Neuburgh Advisers LLC now owns 7,766 shares of the company's stock valued at $108,000 after buying an additional 1,298 shares during the period.

But authorities are believed to be taking aim at Gary Jones who this past month resigned as UAW president and his since resigned from the union.

It's not clear if or how the various issues facing FCA and the UAW impacted the final settlement. Jones lawyer J. Bruce Maffeo says all the expenses were reported in detail and never questioned by the union's accounting department or executive board.

This item has been updated to correct that the deal includes a promise not to close any assembly factories for the next four years, rather than not to close any factories at all for the next four years. Adds that half the $9 billion in total investments was from previous announcements.

Relic thought to be from Jesus' manger arrives in Bethlehem