Union members of United Auto Workers from Fiat Chrysler Automobiles NV’s U.S. plants on Wednesday recommended authorization of a tentative labor agreement that would permit the Italian-American automaker to prevent a strike as it collaborates to merge with France’s Groupe PSA.
Fiat Chrysler (FCA) and PSA, the innovator of Peugeot and Citroen, in October declared a planned $50 billion merger to form the world’s fourth-largest automaker.
The tentative four-year agreement with FCA, reached earlier week, must now be ratified by the 47,200 UAW members at the firm, with voting set to start Friday. The deal comes after contracts the UAW already concluded with larger competitors General Motors and Ford Motor.
FCA refused to discuss it on Wednesday.
The UAW previously stated the contract included a commitment by the automaker to spend $9 billion, creating 7,900 new jobs over the course of the contract. Of the $9 billion, $4.5 billion was talked over earlier this year, to be invested in five plants and generating 6,500 jobs.
The investments consist of $2.8 billion at Warren Truck Assembly plant to construct a new a plug-in hybrid SUV in 2021 and a potential boost of 1,500 jobs.
FCA will also spend $160 million at its Toledo plant to construct a new plug-in hybrid Jeep Wrangler in 2020, and $3 billion at its Jefferson Assembly plant in Detroit to create a plug-in hybrid Jeep Grand Cherokee in 2021 among other latest vehicles.
While the deals with GM and Ford were approved, ratification is not something that obvious as of now. Union members at FCA in 2015 declined the first version of a contract. Furthermore, a federal corruption probe related to embezzlement at the union could also increase doubts among union members about the deal’s terms.
UAW members must finish voting by December 11.
