As Car Makers' Fortunes Diverge, So May Their Labor Deals
October 12 2015 - 7:30PM
Dow Jones News
By Jeff Bennett And Christina Rogers
A United Auto Workers union official told Ford Motor Co. workers
that a proposed labor contract with Fiat Chrysler Automobiles NV
isn't necessarily the same wage deal that the union will press upon
other Detroit auto makers, the latest sign that the union's
longtime commitment to pattern bargaining could be weakening as
finances at the domestic car companies diverge.
For several years, contract deals struck by Ford, General Motors
Co. and Chrysler have largely mirrored one another. GM and
Chrysler's trips through bankruptcy court have disrupted the
competitive playing field for U.S. auto makers, and the merged Fiat
Chrysler's heavier use of entry-level workers has further altered
the financial footing of the three rivals.
"It is imperative that you keep in mind that the [Fiat Chrysler]
agreement is only a pattern and the tentative agreement reached
with Ford will be UAW-Ford specific aimed at addressing concerns
with the current agreement and securing gains for our membership,"
UAW Vice President Jimmy Settles told members on Monday.
His note is another in a series of steps Mr. Settles has taken
to address concerns that 53,000 Ford factory workers have while
applying pressure on the Dearborn, Mich., auto maker. Mr. Settles
is expected to wring bigger higher wages and solid bonuses from the
No. 2 U.S. auto maker, but Ford's hourly costs are about $10 higher
than Fiat Chrysler's, and that has tempered expectations.
Earlier this month, Mr. Settles pushed for a strike at a Ford
pickup truck plant in Missouri. The strike was averted when the
auto maker and union reached an agreement on some issues within the
factory. He has also posted videos in September featuring local UAW
officials talking about how they will claw back what they had lost
in earlier contracts.
Fiat Chrysler workers are considering a contract that would pay
out signing bonuses of $3,000 and $4,000 while gradually closing a
pay gap between new hires and veteran workers over eight years. If
approved, the deal could be a used as a blueprint at Ford and
General Motors, but Mr. Settles' remarks suggest the details of
each deal could shift.
Mr. Settles asked Ford workers to support Fiat Chrysler workers
as they consider a new tentative agreement.
"During this time, it is most important that we stand together
with our brothers and sisters and allow them to negotiate an
agreement amongst themselves," Mr. Settles said. "It is also the
time that we do more than just talk about solidarity, but we
actually practice it."
Fiat Chrysler workers are slated to vote on a new accord Oct.
20th and 21st. The membership overwhelmingly rejected the first
contract.
Write to Jeff Bennett at jeff.bennett@wsj.com and Christina
Rogers at christina.rogers@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 12, 2015 19:15 ET (23:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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