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U.A.W.'s Dennis Williams and Norwood Jewell
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Raises, but no job guarantee in UAW pact

THE BLADE/TOM HENRY

Raises, but no job guarantee in UAW pact

Contract with Fiat Chrysler narrows 2-tier wage gap

DETROIT — The tentative, four-year labor contract between the United Auto Workers and Fiat Chrysler Automobiles calls for the first pay raises in 10 years for longtime workers and sizable raises and lump-sum payments to newer workers, better profit sharing, and a new health care co-op designed to maintain affordable medical benefits.

The agreement, presented on Friday night to the UAW leaders of union locals at Fiat Chrysler plants across the country, calls for a 3 percent wage increase and a pair of 4 percent lump-sum payments for workers hired before 2007. It also calls for raising the top pay for workers hired in the past eight years from about $19 an hour to about $25 an hour. It also provides the chance for bonuses for all workers of $4,000 to $13,000 and an upfront lump sum payment of $3,000 for each worker.

RELATED: Finkbeiner demands Fiat chief keep promise

However, the agreement, still awaiting ratification votes by UAW members, doesn’t provide long-term job guarantees for employees of Fiat Chrysler’s Toledo Assembly Complex, many of whom are nervous about their future because the company has told union leaders it will move Jeep Cherokee production from Toledo to a plant in Belvidere, Ill., which now manufactures the Dodge Dart.

The company plans to increase its current Jeep Wrangler production in Toledo and add a Jeep Wrangler pickup truck, but local union members are worried that will not offset the loss of the Cherokee.

Toledo Assembly has about 2,800 workers making Cherokees and about 600 Chrysler workers making Wranglers. About 900 independent supplier workers also help make the Wrangler.

Bruce Baumhower, president of UAW Local 12, which represents the Toledo Jeep workers, said after his briefing Friday that he liked the pay raises in the agreement but had some concern about whether his members would all keep their jobs.

“Other than we’d like to see the two-tier wages completely gone, this gets us closer in reducing the gap,” he said of the pay changes.

But with Toledo Assembly’s loss of the Cherokee production, he wants to make sure that will mean enough work for all of his members to keep their jobs.

“Our main concern is employment, because whatever we make doesn’t matter if we’re not working,” he said. He said he received some assurance from the union leadership that the current employment wouldn't shrink, but not firm vehicle production volume.

“I feel better about that (employment) today than yesterday, but we still have work to do on it.”

Former Toledo Mayor Carty Finkbeiner on Friday called on Fiat Chrysler CEO Sergio Marchionne to keep the present employment numbers steady. He is one of seven candidates vying for the remaining two years of the late Mayor D. Michael Collins’ term on Nov. 3.

At the UAW news conference Friday inside Detroit’s Renaissance Center, a weary UAW International President Dennis Williams smiled when asked about Mr. Finkbeiner’s stunt.

“We love [that former] mayor. We really do,” Mr. Williams said, chuckling. “But the mayor don’t negotiate with the company. We do.”

Jeff Morris, president of UAW Local 723, which represents workers at Fiat Chrysler’s Dundee Engine Plant, could not be reached for comment Friday.

At the Detroit news conference, Mr. Williams was accompanied by Norwood Jewell, UAW vice president who helped negotiate the tentative agreement with Fiat Chrysler. Mr. Jewell deflected questions about potential job losses at any one plant, stating that the proposal offers commitments in general to maintain steady employment across the Fiat Chrysler fleet.

National UAW members will be asked to ratify the measure next week, Mr. Williams said.

Mr. Baumhower said a ratification meeting for Local 12 hasn’t been set, but is expected next weekend.

Mr. Williams said he empathizes with Toledo workers and that he has spoken with Mr. Baumhower about their mutual concerns. But he didn’t say much when asked how he expects Local 12 to react to the proposal.

“The membership is scratching its head like all of us do,” he said about Fiat Chrysler’s decision to move the Cherokee out of Toledo.

The proposed agreement is a win for the working class overall, offering significant balance, Mr. Williams said.

The UAW president said he and Mr. Jewell are pleased they set up the contract in a way to assist future negotiators.

“The company got it. They understood what we were trying to achieve,” Mr. Williams said. “I think once the membership looks at it, they’ll ratify it. They’ll see it’s a very balanced and thoughtful agreement.”

He said he was glad the UAW got Fiat Chrysler to restore Sunday double time, one of the new provisions in the agreement.

“Sundays are kind of sacred to us,” Mr. Williams said. “Some like church and some like football.”

The contract proposal calls for $5.3 billion worth of investment in the company’s U.S. plants, but leaves open the possibility of some production — such as the Dodge Dart and Chrysler 200 — in Mexico.

“The investments are contingent on consumer demand and on the company’s ability to generate sustainable and profitable vehicle volumes for all of its U.S. facilities,” a summary of the tentative agreement states.

The proposed agreement covers 40,000 Fiat Chrysler workers, about 6,500 of whom are at Toledo Assembly, Dundee Engine Plant, and Toledo Machining in Perrysburg Township.

Fiat Chrysler sold a record 175,328 Wranglers last year, 13 percent more than the previous year. All were made at the Toledo Assembly Complex. But the Cherokee was more popular. Last year, 275,000 of them were built at Toledo Assembly.

Contact Tom Henry at: thenry@theblade.com, 419-724-6079, or via Twitter @ecowriterohio.

First Published September 19, 2015, 4:00 a.m.

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