The United Auto Workers (UAW) and Chrysler reached a tentative agreement for a new four-year contract in September 2015. The contract was voted on and ratified by UAW members in October 2015. The agreement included several highlights that will impact workers and the auto industry as a whole.
Wages
One of the most significant changes in the contract is the increase in wages for workers. Entry-level workers will see a 25% increase in wages over the course of the four-year contract. This means their pay will rise from $15.78 an hour to $19.28 an hour by the end of the contract. In addition, all workers will receive a 3% raise in the first and third years of the contract.
Healthcare
Workers will continue to receive healthcare benefits under the new contract. However, there are some changes to how those benefits will work. Workers will now be required to pay more for their healthcare, with an increase in co-pays and deductibles. The UAW and Chrysler have also created a new healthcare co-op, which will allow workers to pool their resources and negotiate better rates with healthcare providers.
Bonuses
Workers will receive a signing bonus of $3,000 as part of the new contract. This bonus is for ratifying the contract and will be given to all workers, regardless of their position or pay level.
Temporary Workers
There are also changes in how temporary workers are treated under the new contract. Temporary workers will now be allowed to become “in-progression” workers, which means they will have a path to becoming full-time employees. This is significant because temporary workers have traditionally been paid less and received fewer benefits than full-time workers.
Job Security
The UAW and Chrysler have also worked to address job security in the new contract. Under the agreement, Chrysler has committed to investing $5.3 billion in its US plants over the course of the contract. This investment will create new jobs and help to secure existing ones. In addition, the contract includes a provision that limits the number of workers who can be laid off in a given year.
Conclusion
Overall, the 2015 UAW Chrysler contract highlights a number of significant changes for workers and the auto industry as a whole. The increase in wages, changes to healthcare benefits, and new opportunities for temporary workers are all major wins for the UAW. At the same time, the commitment to job security and investment in US plants are important for the ongoing success of the auto industry.