Fiat Chrysler, Unifor begin negotiations on new contract
GM workers ratified deal on Sunday that union head described as 'historic'
Fiat Chrysler Automobiles went on the hot seat Monday as it sat down to negotiate a new contract with its Canadian unionized workforce.
Unifor has said it is looking for a signed commitment from Fiat that any next-generation minivans would be built in Windsor, Ont.
The automaker spent billions in 2015 retooling its Windsor assembly plant, paving the way for the launch of the Pacifica minivan earlier this year. Although company officials have promised to keep that platform alive for nearly a decade, Unifor has said nothing is certain.
- Unifor wants guarantee for Windsor Assembly in FCA talks
- Fiat Chrysler picked as next bargaining target, Unifor says
Fiat employs about 9,750 Unifor union members, including:
- 3,300 at its Brampton, Ont., assembly plant, where the Chrysler 300, Dodge Challenger and Dodge Charger are built.
- 6,000 members at its Windsor, Ont., plant, which makes the Dodge Caravan and Chrysler Pacifica.
- 450 at its Etobicoke, Ont., casting plant.
The start of talks follows on the heels of workers at General Motors accepting a new contract.
Now that <a href="https://twitter.com/hashtag/autotalks16?src=hash">#autotalks16</a> w GM have concluded our union will move to resume negotiations with Fiat-Chrysler using the pattern achieved <a href="https://twitter.com/hashtag/canlab?src=hash">#canlab</a>
—@JerryPDias
Unifor, which represents workers at the Detroit Three in Canada, calls the GM deal a major breakthrough, and says it will be used as a basis for negotiations with both Fiat Chrysler and Ford.
Unifor president Jerry Dias hailed the contract as "historic" — and the best deal the union has struck with one of the auto giants in the past decade.
The agreement includes a two per cent wage increase this year and another two per cent increase in September 2019.
There is also a $6,000 initial signing bonus, plus lump sum bonuses of $2,000 in each of the next three years for most employees. And GM promised to invest $554 million in its Canadian operations.
General Motors of Canada president Steve Carlisle said the deal will position the automaker's Canadian operations at the "forefront of an industry that is experiencing dramatic transformation and change."
Ontario Minister of Economic Development and Growth Brad Duguid said the provincial government was pleased with the ratification vote.
"Our government is now working with our partners at GM, Unifor and the federal government to assist in landing these new product investments," Duguid said in a statement. "This agreement is extremely positive news for workers and their families in Oshawa, St. Catharines and Woodstock, and also for our burgeoning auto parts sector."
With files from CBC News