The lowest-paid group would be able to earn up to $28 per hour under the new terms, representing a significant increase over the $25 ceiling included in the deal that was rejected by the majority of FCA’s 40,000 organized members. The same tier is currently making a maximum of $19/hour under the deal that ended this year.
Senior employees already making Tier 1 wages will be eligible for alternating annual three-percent general pay increases and four-percent lump-sum bonuses. The bonuses and raises are said to represent gains of $20,000 for a typical production worker based on 2,080 straight-time hours.
Responding to apparent paranoia surrounding a proposed healthcare co-op included in the original deal, UAW leaders have warned that health costs are projected to jump from $8/hour to $13-14/hour by 2019.
“The company’s solution is for our members to pay more,” union presidents wrote in a letter to workers. “Over the years we have protected you from premium sharing and have been successful in this set of bargaining, too. But if we are going to maintain these benefits, we must be proactive and not wait for the problem to get worse.”
Instead of pushing forward immediately with plans for a co-op, the UAW has asked companies to share more data and support healthcare studies.
FCA’s workers must now vote again on the new proposal before it is finalized and adopted.
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