UAW-FCA workers would get extra holiday, extra pay under proposed contract

Under the UAW's tentative deal, Fiat Chrysler workers will receive lump sum bonuses in 2016 and 2018 of 4 percent of pay, and all members will receive a ratification bonus of $3,000.

DETROIT -- In addition to raises and bonuses, the tentative agreement between Fiat Chrysler and the UAW includes the restoration of a number of benefits and guards against a threatened tax hit on UAW member’s health care plans.

The agreement, reached Tuesday, is still subject to ratification by FCA’s 37,000 UAW-represented employees. The UAW planned a press conference at 4:30 p.m. ET in Detroit on Friday to discuss details.

Here are some of the highlights of the proposed agreement that will be given to FCA’s UAW members for their consideration.

Pay, bonuses

The economics of the plan call for two general wage increases of 3 percent: one at ratification and a second in September 2017.

Employees will also receive lump sum bonuses in 2016 and 2018 that are equal to 4 percent of pay, and all members will receive a ratification bonus of $3,000.

Other bonuses are available for meeting improvement targets in quality and performance under FCA’s global manufacturing system.

The proposed agreement also raises the starting rate for new hires to $17 an hour and establishes a progression to $25.35 an hour, depending on seniority. So-called Tier 2 employees will be eligible to receive larger profit sharing payouts.


Here are some of the non-compensation highlights of the proposed agreement:

  • Current retirees will get a $1,000 car voucher.
  • An improvement to the 3/2/120 alternative work schedule, which sees shifts of employees in FCA plants rotating between days, afternoons and evening shifts over short periods of time. Bargainers won time-and-one-quarter pay for regular shift work that falls on Saturdays, and double time for work on Sundays.
  • Restoration of in-office legal services, such as preparation of wills and residential real estate matters, as well as assistance in applying for Social Security disability benefits as necessary. The services will be available to both active and retiree UAW members.
  • An agreement to limit the impact on union members of a threatened excise tax on high-end health care plans as part of the Affordable Care Act, either by amending the benefit plan by mutual agreement, or limiting deductibles for those that are hit with the excise tax.
  • The ability to schedule vacation one day at a time, instead of in multi-day blocks.
  • The Monday following Easter will be an additional paid holiday. Workers already received Good Friday off as a paid holiday.
You can reach David Barkholz at

ATTENTION COMMENTERS: Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Email Newsletters
  • General newsletters
  • (Weekdays)
  • (Mondays)
  • (As needed)
  • Video newscasts
  • (Weekdays)
  • (Weekdays)
  • (Saturdays)
  • Special interest newsletters
  • (Thursdays)
  • (Tuesdays)
  • (Monthly)
  • (Monthly)
  • (Wednesdays)
  • (Bimonthly)
  • Special reports
  • (As needed)
  • (As needed)
  • Communication preferences
  • You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.