UAW FCA members overwhelmingly ratify labor deal - Dodge Nitro Forum
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post #1 of 33 (permalink) Old 07-14-2015, 01:39 PM Thread Starter
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Exclamation UAW FCA members overwhelmingly ratify labor deal

FCA US and the UAW Open Bargaining

Bargaining teams gather for ceremonial handshake
Marchionne - “Right leadership and right teams in place to negotiate long-term, responsible agreement”
CEO reiterates position to reward UAW-represented employees for performance while allowing the Company to maintain a competitive cost structure in an economic downturn
Cooperation has allowed for $5.7 billion in investments and the addition of nearly 15,000 new hourly jobs


July 14, 2015 , Detroit -



FCA US and the UAW officially opened negotiations today on a new collective bargaining agreement for its 39,000 represented hourly employees with a ceremonial handshake at the UAW-Chrysler National Training Center in Detroit.

FCA US Chairman and CEO Sergio Marchionne and FCA North America Vice President - Employee Relations Glenn Shagena were joined by UAW President Dennis Williams and UAW Vice President Norwood Jewell, along with more than 30 members of the bargaining team, to mark the occasion.

“FCA US and the UAW have a long standing partnership that has a proven track record of being able to overcome challenges when faced with adversity,” said Marchionne. “There is a great deal of mutual respect between us, and I am confident that we have the right leadership and the right teams in place to negotiate a long-term, responsible agreement.”

As the two sides met in 2011, FCA US, formerly Chrysler Group, was in the process of recovering from a painful restructuring. With the support of the UAW, the 2011 agreement allowed the Company to further rebuild and grow the business. As a result, FCA US has invested more than $5.7 billion in its U.S. facilities and hired nearly 15,000 hourly employees by keeping labor costs competitive. As a result, production at U.S. vehicle assembly plants has increased from 1.2 million units in 2011 to 1.7 million units in 2014. In June, the Company extended its U.S. sales streak of year-over-year sales gains to 63-consecutive months.

“Our UAW members are an integral part of the success of FCA US, and they need to participate in the economic well-being of the company,” said Marchionne. “It is important that we effectively come up with a compensation plan that allows union members to participate in the profit generation based on performance, while allowing us to maintain a competitive cost structure in a downturn.”

Marchionne cited the implementation of World Class Manufacturing (WCM) as having made the Company’s plants more competitive, flexible and efficient.

“At the heart of WCM is a fundamental respect for the people who make up this house,” said Marchionne. “This manufacturing system is organized around a principle that the experience, the intelligence and the creativity of every person contributes to our ultimate destiny.”

Over the term of the current agreement, significant progress has been made on the implementation of World Class Manufacturing (WCM), a rigorous methodology that focuses on eliminating waste, increasing productivity and improving quality and safety in a systematic and organized way. With a joint commitment to WCM, the hourly workforce has been engaged to provide and implement suggestions on how to improve their jobs and their plants.

Facilities are audited twice a year to assess their progress on WCM implementation, scoring points in 10 technical and 10 managerial pillars by demonstrating clear WCM know-how and competence through employee-conducted pillar presentations and a review of projects that have been expanded across the shop floor. As a result of the scores received during those audits, five U.S. plants have achieved bronze status and one has achieved silver since 2009.

“We go into bargaining with a desire to recognize and reward our employees for their hard work and dedication,” said Shagena. “This agreement affords both parties an opportunity to protect and secure the future competitiveness of FCA US by maintaining a cost structure that allows us to continue to provide good, well-paying jobs.”

As talks begin in earnest, both Shagena and Marchionne stressed the importance of remembering the painful restructuring, learning lessons from that experience and not repeating history.

“We cannot afford to be bound by convention in our quest. If we insist on going back to the antagonistic type of bargaining that was once typical of the industry, it will be disastrous,” said Marchionne. “If we agree on a future that calls for our shared responsibility, I believe we can come to an agreement that allows us to continue on the road we have traveled so far.”

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post #2 of 33 (permalink) Old 07-15-2015, 05:42 AM Thread Starter
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CEO & UAW Agree 2-Tier Wages Should Go

Fiat Chrysler CEO & UAW Agree 2-Tier Wages Should Go

July 15, 2015

In fact, Marchionne said FCA is wrestling with keeping future production of the Jeep Wrangler in Toledo, Ohio, because to keep it there would require taking it down for retooling, costing production.

Negotiations between UAW and the Detroit Three automakers are anticipated to be one of the most hard in recent years.


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“You should pay people the same wage for the same work; and therefore, anything that is dual in nature … is unsustainable in the long term”, Marchionne said. The UAW’s contract with Fiat Chrysler Automobiles United States (FCAU), General Motors (GM) and Ford (F) expires September 14.

The UAW and Ford will hold an opening handshake on July 23.

Williams, who joked that he wore a sweater to the event rather than the blue golf-shirt clad Marchionne, said UAW workers expected to share in FCA’s new-found prosperity without unduly harming the carmaker’s strong sales and competitiveness.

Marchionne appeared eager to eliminate the two-tier system that he described as a “shortcut” out of the industry’s financial crisis.

In his opening remarks Williams said entry-level workers don’t earn enough to be part of the middle class. Forty-five per cent of FCA’s US hourly workers now make the lower wage because the company hired so many people after emerging from bankruptcy protection and joining Italian automaker Fiat SpA in 2009.

The challenge facing Williams and Marchionne will be to figure out how to create a wage path for the entry-level workers.

Both Williams and Marchionne also said they would consider it a personal failure if the companies aren’t able to reach an agreement and workers strike. “People who do the same work should get paid the same amount. We all plan to bridge that gap”.

NHTSA hasn’t said publicly that it’s willing to work with FCA on the fines, but told Reuters in a statement that, “one possible outcome is a consent order in which Fiat Chrysler agrees to address issues with its recall performance”.

Fiat Chrysler benefits from the elimination of a cap in 2011 talks on the percentage of entry-level workers it can hire, giving it an advantage over its crosstown rivals.

Chrysler opens negotiations with the UAW on Wednesday, and Ford is scheduled to follow next week.

Marchionne has argued FCA deserves that advantage because it had to hire the highest percentage of new workers to recover from the recession. Entry-level workers now make up to $19.28 per hour; longtime workers make $29 per hour. Only around 20 per cent of Ford and GM hourly workers make the lower wage.

That puts pressure on the UAW’s contract negotiating team to win changes to the contract that would give Fiat Chrysler workers a better shot at larger profit-sharing checks.

“We must be creative and we must be thoughtful”.

“If we insist on going back to the antagonistic type of bargaining that was once typical of the industry, it will be disastrous”, Marchionne said.

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post #3 of 33 (permalink) Old 07-20-2015, 10:13 AM Thread Starter
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2015 Contract Talks Kickoff Handshakes



2015 Contract Talks Kickoff Handshakes

Published on Jul 20, 2015

Handshakes and hugs between FCA US CEO Sergio Marchionne and UAW President Dennis Williams at official kickoff for 2015 contract talks in Detroit on July 14, 2015

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post #4 of 33 (permalink) Old 07-20-2015, 10:16 AM Thread Starter
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Marchionne Remarks at 2015 Contract Talks Kickoff



Marchionne Remarks at 2015 Contract Talks Kickoff

Published on Jul 20, 2015

Remarks by FCA US CEO Sergio Marchionne during official kickoff of contract talks with the UAW in Detroit on July 14, 2015.

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post #5 of 33 (permalink) Old 08-30-2015, 09:31 AM Thread Starter
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Fiat Chrysler health costs up 77% since 2011

August 30, 2015

Fiat Chrysler health costs up 77% since 2011


Since 2011, health care costs have increased 77 percent for hourly workers at Fiat Chrysler Automobiles, from $347 million per year to $615 million this year, FCA said.

For tier-one legacy employees, their average health care plan is valued at more than $18,000 per year. It is projected to double in nine years. Health costs amount to $9 per hour of the average $47-per-hour wage.

Newly hired workers, considered tier-two employees who start out at $15.78 per hour, would have health care costs exceed the value of $16 per hour within 10 years.

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post #6 of 33 (permalink) Old 08-30-2015, 10:58 PM Thread Starter
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Marchionne's shared views with UAW

August 29, 2015

Marchionne's shared views with UAW chief could help U.S. contract talks

Sergio Marchionne said he believes his straightforward relationship with UAW President Dennis Williams will help Fiat Chrysler reach a new labor agreement with the union.

The Fiat Chrysler Automobiles CEO, as part of a broader interview with Automotive News in Detroit recently, said the two men have a mutual understanding that will make a difference as the two sides negotiate a new contract before the current one expires Sept. 14.

Quote:
The UAW late Friday said 97 percent of the FCA rank-and-file voted to give the union leadership authorization to strike, if necessary. Strike authorizations, typically a procedural move during contract talks, are still pending at General Motors and Ford Motor Co.

Marchionne, during the recent interview, said although he and Williams are not personally close, "we share a view about the fact that, in some fashion, to the extent that we are successful in creating wealth out of these car companies, real wealth, then we should be able to distribute that."

And in colorful language, Marchionne said all automakers have abused the UAW in the past.

"To be perfectly honest, we've all [expletive] with the UAW, right? We were threatened by them, so we took all the pickup trucks that we sell -- and 90 percent of those pickup trucks are sold in this country, right -- we took it away, and then we delocalized them" in Mexico, Marchionne said during the interview.

"If you move the truck back here, which is [the UAW's] domain, with all the cars that we get killed on somewhere else, we could actually make sense of this bloody industry and actually increase the number of people employed in this country, right, and really share wealth because we are making money," he said.

The CEO added: "What a wonderful idea, distributing cash when you have it."

Williams was in labor negotiations and could not be reached for comment.

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post #7 of 33 (permalink) Old 09-05-2015, 08:41 PM Thread Starter
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UAW healthcare overhaul idea

Sep 3, 2015

Detroit Three show interest in UAW healthcare overhaul idea




The Detroit Three automakers are showing increased interest in the United Auto Workers union's proposal that they pool their healthcare systems, a sign that contract talks between the union and manufacturers are down to the big money issues.

The UAW and bargainers for General Motors Co , Ford Motor Co and Fiat Chrysler Automobiles face a Sept. 14 deadline to negotiate new labor agreements for 142,000 U.S. workers. Rising healthcare costs have emerged as a stumbling block in the way of raises for blue collar workers.

UAW President Dennis Williams has for months advocated replacing company-run plans with a cooperative that would cover U.S. workers at all three companies and have a more powerful bargaining position with healthcare providers.


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"We are talking to them about a co-op and it is an idea we support,” FCA said in a statement Thursday that was the clearest signal yet that automakers are giving serious consideration to Williams' proposal.

GM said, "The pressures of rising health care costs require collaboration to find creative solutions," but didn't explicitly endorse the cooperative idea. On Wednesday, Ford Chairman Bill Ford said his company was discussing the idea with the union.

Williams and officials at the Detroit Three have said rising health care costs, a wage system in which new hires are paid significantly less than veterans, pension liabilities and future investment in UAW-represented plants are the key issues they want to address in this round of contract bargaining.

The Detroit Three shifted health care costs for about 900,000 UAW retirees to union-managed trusts as part of a 2007 agreement. The automakers say their combined spending on healthcare is $2.25 billion a year for active UAW workers, up 55 percent from 2011.

A deal to curb healthcare costs would give the automakers and the UAW more flexibility to give pay raises or narrow the wage gap between newly hired UAW workers, who make about $16 an hour, and veterans hired before 2011, who make about $28 an hour.

Workers at the three U.S. automakers have made bonus checks based on their employer's North American profits as the companies have rebounded from the recession. But veteran UAW workers have not had a base wage increase in nearly a decade.

The UAW wants automakers to commit to investments to secure U.S. jobs. The July disclosure that Ford plans to shift some small car production to Mexico jarred UAW leaders.

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post #8 of 33 (permalink) Old 09-13-2015, 01:10 PM Thread Starter
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Statement regarding the Status of Contract Talks between FCA US LLC and the UAW

09/13/2015

FCA US LLC confirms that it has been selected as the company to set pattern on a collective bargaining agreement with the UAW. As negotiations are ongoing, the Company can offer no further comment at this time.

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post #9 of 33 (permalink) Old 09-15-2015, 12:45 AM Thread Starter
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Statement Regarding Contract Talks

Statement Regarding Contract Talks between FCA US and the UAW


September 15, 2015 , Auburn Hills, Mich. -

FCA US LLC confirms that its current contract with the UAW will be extended on an hour by hour basis as bargaining continues.

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post #10 of 33 (permalink) Old 09-15-2015, 06:07 PM Thread Starter
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Exclamation Fiat Chrysler, UAW Reach Tentative Contract Deal

Fiat Chrysler, UAW Reach Tentative Contract Deal

Sep 15, 2015, 7:23 PM ET



The United Auto Workers union and Fiat Chrysler have reached a tentative deal on a new contract for about 40,000 workers that will serve as a pattern for pacts with General Motors and Ford.

Terms of the deal were not disclosed Tuesday, but both sides said a news conference would be held later in the evening with UAW President Dennis Williams and Fiat Chrysler CEO Sergio Marchionne.


Quote:
The union was seeking hourly pay raises for longtime workers who haven't had one in a decade. It also wanted to at least close the gap between new hires who start at about half the $29 per hour that longtime workers are paid.

Fiat Chrysler wanted to hold its hourly labor costs steady while GM and Ford wanted to cut theirs to be more competitive with foreign automakers.

Contracts with all three companies expired Monday night but were extended while talks continued.

The deal came after a furious 48 hours of bargaining that included an all-night session from Monday to Tuesday.

The union's contract with the Italian-American automaker officially expired at 11:59 p.m. EDT Monday, but both sides agreed to extend it on an hour-by-hour basis while talks continued toward a new four-year agreement.

Fiat Chrysler, or FCA, was picked as the lead company in the talks this year, making it the focus of bargaining and a potential strike target if talks hit a snag. Also Monday, General Motors and Ford extended their contracts with the UAW indefinitely as bargaining continued.

The main issue in the talks appears to be pay raises. The current wage gap between entry-level workers and veteran employees benefits FCA the most, since 45 percent of its hourly workers make entry-level wages. Only around 20 percent of workers at Ford and GM make the lower wage.

Marchionne has been outspoken about wanting to eliminate the wage gap. But he has indicated the top wages should come down in favor of fatter profit-sharing checks. All three companies also want to stick with profit-sharing instead of increasing hourly labor costs. Over the past four years, FCA workers have gotten annual profit-sharing checks totaling $9,000 per worker.

The union is also seeking guarantees that new vehicles will be built in U.S. factories and not in Mexico, where companies have been moving some of their production.

But automakers, especially GM and Ford, want to cut labor costs to stay competitive. FCA is the only one of the Detroit Three whose U.S. labor costs are lower than foreign competitors like Toyota; Ford and GM think that's an unfair advantage and want to be on par with FCA.

To fund some of the union demands, UAW President Dennis Williams has proposed a giant health care pool to save money for the union and the three companies. Currently a union-run trust pays most health insurance costs for about 600,000 retirees and their spouses, and the companies fund health care for about 551,000 hourly and salaried workers and their families.

Marchionne canceled plans to attend the Frankfurt International Motor Show in Germany Tuesday and instead stayed in the U.S., a strong sign that a deal was near.

All three companies officially kicked off bargaining for new four-year contracts in July. The contracts cover around 140,000 U.S. factory workers.

Williams and Marchionne, who greeted each other with a hug as the negotiations began in July, have both said they would consider it a failure if they can't reach an agreement and workers strike. Workers at FCA — known as Chrysler before its 2009 merger with Fiat — went on a seven-hour strike during contract negotiations in 2007 but were prohibited from striking in 2011 under terms of a government-funded bankruptcy.
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