Fiat Chrysler Automobiles and the United Auto Workers union have reached a tentative collective bargaining deal. Both sides have confirmed the deal, which is coming amid significant turmoil for both parties.
The deal reportedly includes a $4.5 billion investment commitment from FCA, which translates into 7,900 UAW jobs over the course of the four-year deal. The $4.5 billion pledge is on top of an additional $4.5 billion FCA already announced, meaning FCA is planning $9 billion in investment into its U.S. manufacturing over the next four years.
Specifics of the labor deal have yet to trickle out, but terms are expected to be similar to deals the UAW recently inked with General Motors and Ford Motor Company. The three contracts generally have a number of parities, specifically relating to planned raises.
This deal has been reached amid significant drama from both FCA and the UAW. General Motors recently filed a lawsuit against FCA for alleged racketeering that involved the UAW. FCA is also in the middle of negotiating a merger of French automaker PSA Group.
On the UAW side, two high-ranking union officials recently resigned, including UAW President Gary Jones. The resignations come as a federal corruption probe into the union is ongoing and has already led to seven convections of people affiliated with the union.
The UAW says its UAW-Fiat Chrysler National Council will meet on Dec. 4th to review the tentative labor deal with FCA. Assuming the National Council supports the agreement, it will then go to the members for ratification. In total, the entire process will likely take a couple weeks until the agreement is final.