The United Auto Workers union said on Thursday (22 October) 77% of voting members have ratified a four-year labour deal with Fiat Chrysler Automobiles.

The new contract will be used as a basic pattern for contracts at General Motors and Ford plants in the US. The UAW is expected to soon name the company with which it negotiates next, Reuters reported. The new contract provides a clearer path to top pay for 'second-tier' workers in a two-tier wage system established when the last deal was agreed in 2007. This pays newer workers less than those recruited before 2007.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Last month, 65% of Fiat Chrysler UAW members rejected a previous proposed agreement, which led to a threat by the union to strike Fiat Chrysler's US operations.

FCA US said in a statement: "This agreement represents an investment in our US workforce and recognises its contributions to the company's growth over the past six years. With the bargaining process now complete, the company and our employees can look forward to continuing to build world class products, investing in our operations and achieving the targets set out in our five year business plan."

Reuters noted UAW members sacrificed gains in a 2011 contract and made concessions to allow the former Chrysler to go through bankruptcy and come out partially owned and fully managed by the former Fiat. Fiat and Chrysler merged in 2014.

See Also:

The new contract will affect 40,000 Fiat Chrysler UAW members in the United States. GM and Ford each have about 52,700 UAW-represented workers, according to the news agency.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.