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UAW leaders approve richer Fiat Chrysler contract

Auto Manufacturers
Fiat Chrysler Automobiles
Fiat Chrysler Automobile workers on an assembly line.

DETROIT - Local United Auto Workers leaders have approved a new proposed contract with Fiat Chrysler.

Friday's vote came just over a week after UAW members voted down a previous agreement. The UAW and FCA hammered out a new contract, averting a threatened strike.

The new agreement promises to gradually eliminate a tiered pay system and bring all U.S. factory workers to the same pay level over eight years. The previous agreement promised to raise the wages of newer, lower-tiered employees to $25 per hour, which was still lower than the pay for longtime workers.

It also promises the first raise in nine years for the highest-paid workers.

Union members will now vote on the new agreement, which covers around 40,000 workers at 23 U.S. plants.

The Associated Press is an independent global news organization dedicated to factual reporting.
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