Tentative deal between Unifor, FCA follows pattern set in GM agreement
Chrysler was backed into a corner and couldn't afford a worker strike, says auto analyst
A Unifor representative for Fiat Chrysler workers calls a tentative agreement reached between the union and the automaker "the best economic deal" he has seen.
Unifor announced a new deal with FCA late Monday, with just five minutes to go before a 12:01 a.m. strike deadline. Speaking to CBC Tuesday, Dino Chiodo, the president at Unifor Local 444 praised the deal.
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"It's probably the best economic deal I've seen in any of the Chrysler agreements that I've ever participated in. It gives us a little bit of stability," Chiodo said. "It gives us opportunity to increase standard of living for our members, and it gives us the opportunity to continue to build."
One auto analyst said the union hammered out a solid deal for workers, but says FCA was in a weak bargaining position.
The automaker could not afford a strike, explained Tony Faria, director of the automotive research office at the University of Windsor.
Faria says FCA already lost sales when its Windsor plant shut down for several months, while it retooled and spent $3 billion upgrading the facility to get ready for the new Pacifica minivan.
"FCA signed on the dotted line for a very clear reason. They were backed into a corner," Faria said. "The Pacifica is now fairly new into dealerships across Canada and the United States. FCA cannot afford to lose production."
'We went right to the wire'
Chiodo was at the negotiation table with FCA and is part of Unifor's master bargaining committee in negotiations with the Detroit Three. He is also the president of the Unifor local at Windsor Assembly Plant.
Negotiators worked on the deal throughout the Thanksgiving weekend, with updates throughout the day Monday offering no indication a breakthrough was imminent.
"We went right to the wire," Chiodo said. "The economics weren't where we anticipated they would be. Investment wasn't forthright, and Chrysler, telling us they were the smallest of the Detroit Three so to speak, wouldn't be able to cover those costs."
"It was a little testy and frustrating in the last hour, but I'm happy we were able to achieve [a deal] and get there," he said.
The deal includes changes to the pay grid for new hires, maintaining the cost-of-living allowance for union members and a commitment to invest in FCA's Brampton, Ont. assembly plant and Etobicoke, Ont. casting plant.
Chiodo said this deal follows the pattern set with General Motors Co., but is not exactly the same.
A ratification vote is scheduled for Oct. 16 at the St. Denis Centre in Windsor.
Not everyone is happy with the deal
Not all workers are happy with the deal, including Randy Desjardins. The fourth-generation Chrysler worker has been at the Windsor Assembly Plant for 27 years.
Though he's set to retire in a few years, he would prefer workers keep the defined benefit pension plan, which has been eliminated in this round of bargaining.
Desjardins said generations of workers fought for what he calls a middle-class pension. Replacing it with a defined contribution plan does nothing for new employees.
"Jerry Dias has taken that middle-class pension and kissed it good-bye," he said. "A defined contribution pension plan for new hires is, basically, a glorified RRSP."
Desjardins would also prefer new hires get to the top of the pay grid faster than the 10 years it currently takes.
"My vote is going to be a big fat 'No.' It's not about me anymore. It's about the next generation coming in," he said. "Same wages for the same work with the same benefits, same pension."