Fiat Chrysler Automobiles NV (NYSE: FCAU) employees have approved a four-year negotiated contract that guarantees the creation or retention of nearly 8,000 jobs and includes $9 billion in investments by the automaker in its U.S. manufacturing operations.
The United Auto Workers members' ratification of the collective bargaining agreement closes out the UAW's negotiations with the Big 3 Automakers, a round of talks that included a strike by workers at rival General Motors Company (NYSE: GM).
The agreement calls on Fiat Chrysler to double the $4.5 billion it had previously announced it would invest in upgrades and new facilities.
The company said the additional investment would go toward adding 1,400 additional jobs but didn't specify exactly where the extra money would be spent, saying only that it would support upgrades across the company's U.S. manufacturing footprint, which includes plants in Michigan, Ohio, Indiana and Illinois.
The contract covers more than 47,000 UAW-represented employees at 22 FCA manufacturing facilities and 17 Mopar Parts Distribution Centers around the United States.
The UAW also touted concessions it said it won on the issue of temporary workers.
“Every full-time production employee currently at FCA will be at top rate by the end of this four-year agreement,” UAW Vice President Cindy Estrada said in a statement. “All temporary workers now have a defined pathway to full time and top pay as well.”
The contract also includes a $9,000 per full-time member signing bonus, two 3% annual raises and two 4% lump-sum payments and keeps out-of-pocket health care costs the same, the union said. It also adds coverage for prescription drug costs for temporary workers.
Amid these negotiations several UAW officials, including President Gary Jones, have resigned after GM accused the union of several corruption charges, according to The New York Times.
Fiat Chrysler stock closed down 0.56% on Wednesday at $14.33.
Photo: A Fiat Chrysler employees prepares a Jeep Cherokee chassis at the company's Belvidere, Illinois assembly plant. Photo courtesy of Fiat Chrysler.