Market Overview

Chrysler Averts Strike, Reaches Tentative Deal With Unifor

Chrysler Averts Strike, Reaches Tentative Deal With Unifor

Fiat Chrysler Automobiles NV (NYSE: FCAU) reached an agreement with Unifor, the Canadian labor union that represents auto manufacturing workers across the country.

According to the Detroit Free Press, Fiat will commit to investing in its assembly plant in Brampton, Ontario, and offer workers their first raise in 10 years. An agreement was finalized after days of "intense" negotiating and averts a potential strike. The agreement also marks the second major victory for the worker's union after reaching a favorable agreement with General Motors Company (NYSE: GM) in late September.

Related Link: Canadian Workers Reach Tentative Agreement With General Motors

If Fiat Chrysler's agreement with the union is ratified, the auto maker will invest C$325 million (approximately $246 million) for a new paint shop and a $6.4 million upgrade to a casting plant in Ebitocoke, Ontario.

Workers will earn at least $20.92 Canadian per hour and will receive a raise every year until reaching the top wage of $34.15.

Unifor's president Jerry Dias was quoted by the Detroit Free Press as saying that the paint shop is "over 30 years old" and he was "really deeply concerned." He confirmed that Fiat Chrysler will now "gut the existing paint shop and refurbish it."

The agreement between Fiat Chrysler and the union will not be official until next week, pending a vote by union members. If approved and ratified, the union will then turn its attention to Ford Motor Company (NYSE: F).

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Posted-In: Canadian Auto Union Detroit Free Press Fiat Chrysler Fiat Chrysler CanadaNews Contracts Media Trading Ideas Best of Benzinga

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