Fiat Chrysler Automobiles NV and UAW (United Auto Workers) union on Saturday introduced a tentative agreement for a four-year labor contract, a boost for the automaker as it really works to merge with France’s Groupie PSA.
Italian-American Fiat Chrysler and PSA, the maker of Citroen and Peugeot, last month introduced a planned $50 billion merger to create the world’s fourth-largest automaker.
The tentative agreement with Fiat Chrysler, which is topic to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the USA that virtually shuttered GM’s North American operations and price the automaker $3 billion.
The UAW on Saturday mentioned the contract with Fiat Chrysler included a dedication from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was introduced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement weren’t released; however, they’re anticipated to echo these below the new contracts with GM and Ford because the UAW usually makes use of the first deal as a pattern for the others.
Ford’s contract includes a commitment to invest more than $6 billion in its U.S. vegetation and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford additionally created a pathway to full-time employment for temporary employees and left healthcare insurance coverage unchanged. Each automaker additionally agreed to sign bonuses, with $9,000 for full-time Ford employees and $11,000 for employees at GM.