DETROIT – The United Auto Workers union and Fiat Chrysler have reached a tentative deal on a new contract that will set the pattern for pacts with General Motors and Ford.
Terms of the deal were not disclosed, but both sides said a news conference would be held Tuesday evening.
The union was seeking hourly pay raises for longtime workers who haven’t had one in a decade. It also wanted to at least close the gap between new hires who start at about half the $29 per hour that longtime workers are paid.
Fiat Chrysler wanted to hold its hourly labour costs steady while GM and Ford wanted to cut theirs to be more competitive with foreign automakers.
Contracts with all three companies expired Monday night but were extended while talks continued.