Published: Mon, December 02, 2019
Markets | By Otis Pena

Fiat Chrysler commits to US$9 bil U.S. investment in UAW deal

Fiat Chrysler commits to US$9 bil U.S. investment in UAW deal

The UAW-Fiat Chrysler National Council will meet on December 4 to go over details of the proposed deal.

While specific details won't be announced until the ratification process moves forward, the agreement with FCA is believed to closely follow the pattern set earlier in this year's round of auto talks following a 40-day strike against General Motors in September and October.

The United Auto Workers and Fiat Chrysler reached a tentative agreement Saturday on a new four-year contract, which includes a total of $9 billion in investments but still needs final approval from workers.

Fiat Chrysler has agreed not to close assembly plants during the life of the contract and to assign new product to its factory in Belvidere, Illinois, that makes Jeep Cherokee sport utility vehicles and employs nearly 3,700 hourly workers. Then it must be ratified by Fiat Chrysler Automobiles' 47,000 union workers. Further details will be provided at a later date.

GM also agreed to $11,000 ratification bonuses for most of its full-time employees. The larger of the automakers contends Fiat Chrysler's former CEO, the late Sergio Marchionne, used bribes and other means to get favorable, albeit illegal, settlements with the union that made it more hard for GM to remain competitive. BNP Paribas upgraded Fiat Chrysler Automobiles from a "neutral" rating to an "outperform" rating in a report on Tuesday, November 12th.

The UAW said a ratification vote on the agreement with Fiat Chrysler could come as soon as December 6.

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Israel annexed east Jerusalem in a move not recognized overseas and regards the entire city as its eternal indivisible capital. It states that Israel's building of settlements on Palestinian territories constitutes a violation of worldwide law.

The UAW and Fiat Chrysler were close to reaching a deal that included US$9,000 signing bonuses, people familiar with the negotiations said on Friday, matching what Ford Motor Co recently agreed to pay senior workers. It also gives temporary workers a path to full-time jobs within three years.

The Italian-American vehicle manufacturer, in turn, accused GM of attempting to circumvent the planned merger with French auto manufacturer PSA. Neuburgh Advisers LLC now owns 7,766 shares of the company's stock valued at $108,000 after buying an additional 1,298 shares during the period.

GM hit Fiat Chrysler with a stunning racketeering lawsuit earlier this month, alleging the Italian-American automaker inflicted billions of dollars in damages by bribing union officers for competitive advantages.

The Fiat Chrysler talks could be complicated by an ongoing federal bribery and embezzlement investigation into some of the UAW's leadership, which started at Fiat Chrysler.

Union President Gary Jones, whose home was raided by federal agents and is implicated in the scandal, resigned from the union last week.

This item has been updated to correct that the deal includes a promise not to close any assembly factories for the next four years, rather than not to close any factories at all for the next four years.

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