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Fiat Chrysler-UAW deal may be near

Coeur d'Alene Press | UPDATED 9 years, 4 months AGO
| September 15, 2015 9:00 PM

DETROIT (AP) - Contract talks between Fiat Chrysler and the United Auto Workers union edged toward a deadline Monday night with no word on whether a deal would be reached or if terms of the existing pact would be extended.

The UAW's contracts with FCA, Ford and General Motors were set to expire at 11:59 p.m. EDT. On Monday, Ford and GM extended their agreements indefinitely.

Early Monday, it appeared likely that the union would reach a new accord with FCA before the contract expired. CEO Sergio Marchionne canceled plans to attend the Frankfurt International Motor Show in Germany and instead stayed in the U.S., a strong sign that a deal was near. Both sides said they continued to negotiate well into the evening at a Chrysler-UAW joint training center just north of downtown Detroit.

Harley Shaiken, a labor expert and professor at the University of California at Berkeley, said he thinks FCA and the UAW would like to reach a tentative agreement before the deadline. Shaiken said he believes Marchionne canceled his trip in order to be at the table in case there are any last-minute holdups.

On Sunday, the UAW announced that it had picked Fiat Chrysler as its target company in the contract talks. That means a deal with FCA could set a general pattern for contracts at General Motors and Ford. FCA could also be hit with a strike if negotiations stall, although workers at several FCA factories said Monday they had not been told of any strike plans.

All three companies officially kicked off bargaining for new four-year contracts in July. The contracts cover around 140,000 U.S. factory workers.

Kristin Dziczek, director of the industry and labor group at the Michigan-based Center for Automotive Research, said union members can expect some financial gains in this contract, since all three companies are healthy and profitable. But they have to be careful, since automakers can move their operations to lower-cost countries such as Mexico if their U.S. labor costs get too high.

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