Fiat Chrysler CEO, union agree that two-tier wages should go

AP News
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Posted: Jul 14, 2015 4:33 PM

DETROIT (AP) — Fiat Chrysler CEO Sergio Marchionne and United Auto Workers President Dennis Williams agree on at least one thing: getting rid of the two-tier wages for hourly workers in the company's U.S. plants.

Marchionne and Williams formally began bargaining a new four-year contract Tuesday. The current contract expires in September.

The UAW agreed to allow lower pay for entry level workers in 2007 when Chrysler, General Motors and Ford were struggling. Forty-five percent of FCA's 35,700 U.S. hourly workers now make the lower wage of up to $19.28 per hour. Longtime workers make $29 per hour.

Marchionne says people doing the same work should be paid the same. Williams wants new workers to have a clear path to a higher wage.