The Traderszone Network

Published in TZ Latest News 16 September, 2015 by The TZ Newswire Staff

UAW, Fiat Chrysler reach tentative U.S. labor pact

A tentative labor contract covering 40,000 U.S. workers at Fiat Chrysler Automobiles NV (FCHA.MI) (FCAU.N) could eventually end a controversial two-tier pay system and could offer a new approach to curbing medical costs, the company’s chief executive officer said Tuesday. FCA CEO Sergio Marchionne said the two-tier pay system “will go away over time.” Under the old contract recently hired union workers are paid a top wage of $19.28 an hour, while veterans earn $28 an hour. Analysts expect raises for UAW members at both levels, but the new pay rates were not disclosed.