UAW approves new contract with Fiat Chrysler

FILE - In this July 14, 2015, file photo, Fiat Chrysler Automobiles CEO Sergio Marchionne, left, and United Auto Workers (UAW) President Dennis Williams shake hands during a ceremony to mark the opening of contract negotiations in Detroit. The United Auto Workers union approved a new four-year contract with Fiat Chrysler, on Thursday, Oct. 22, 2015, with UAW members at Fiat Chrysler's U.S. factories voting 77 percent in favor of the agreement, the union said. The contract covers 40,000 workers at 23 U.S. factories. (AP Photo/Paul Sancya, File) FILE - In this July 14, 2015, file photo, Fiat Chrysler Automobiles CEO Sergio Marchionne, left, and United Auto Workers (UAW) President Dennis Williams shake hands during a ceremony to mark the opening of contract negotiations in Detroit. The United Auto Workers union approved a new four-year contract with Fiat Chrysler, on Thursday, Oct. 22, 2015, with UAW members at Fiat Chrysler's U.S. factories voting 77 percent in favor of the agreement, the union said. The contract covers 40,000 workers at 23 U.S. factories. (AP Photo/Paul Sancya, File)

By Associated Press October 22, 2015 3 min read

DETROIT (AP) – The United Auto Workers union has approved a new four-year contract with Fiat Chrysler.

UAW members at Fiat Chrysler’s U.S. factories voted 77 percent in favor of the agreement, the union said. The contract covers 40,000 workers at 23 U.S. factories.

It was the second time in a month that Fiat Chrysler workers voted on a contract. A previous deal was soundly rejected largely because it didn’t eliminate a much-hated two-tiered pay system. The new agreement gives raises to all workers and eliminates the two tiers over eight years.

Fiat Chrysler said in a statement that it was pleased that the contract passed. UAW President Dennis Williams said the agreement boosts wages and gives members job security “while still allowing the company to competitively produce high quality vehicles.”

The union will use the Fiat Chrysler deal as a template for talks with Ford and General Motors. It was unclear Thursday whether the union would pick one company to focus on or try to negotiate with both.