Fiat Chrysler, Union Avert Canada Strike With Tentative Deal
15 Octobre 2020 - 7:31AM
Dow Jones News
By Paul Vieira in Ottawa and Nora Naughton in Detroit
Fiat Chrysler Automobiles NV and the union representing about
9,000 workers at its three Canadian factories reached a tentative
agreement late Wednesday night, averting a strike that threatened
to ripple across the auto maker's North American operations.
Unifor, the Canadian union, said it would share details about
the deal at a media briefing Thursday morning in Toronto.
Representatives for Fiat Chrysler didn't immediately respond to a
request for comment.
Before the Wednesday night deadline, Unifor had warned members
to prepare for a strike, saying talks had bogged down on issues
related to wages, health-care benefits and investment commitments
at the Canadian factories.
A work stoppage would halt assembly of the company's Pacifica
and Voyager minivans, Dodge Charger and Challenger muscle cars, and
a Chrysler sedan. It would also stop production of aluminum die
castings for several Fiat Chrysler models, including highly
profitable Jeep SUVs and Ram pickup trucks built outside of
Canada.
The auto maker is pushing to improve its financial performance
ahead of a planned merger with France's PSA Group. The
Italian-American auto maker needs to preserve cash to pay a
dividend of $3.44 billion (reported as EUR2.9 billion) to its
shareholders ahead of the closing of the deal early next year. That
dividend was reduced last month in a cost-cutting move.
Fiat Chrysler's cash reserves have already been dented by the
effects of the coronavirus pandemic; the company stopped production
at its factories in Europe and North America in the spring to curb
the spread of the virus. The North American business has long
contributed most of the auto maker's earnings, and another work
stoppage in the region would add to pressures on Fiat Chrysler's
bottom line.
Unifor reached a new labor deal with Ford Motor Co. last month,
securing a nearly $1.5 billion investment in two plants and a
commitment to build electric cars at a plant near Toronto. As is
typical in pattern bargaining, Unifor used that agreement as a
template for its talks with Fiat Chrysler.
Last year, Fiat Chrysler negotiated a new contract in the U.S.
with the United Auto Workers that included wage increases and
improved health-care benefits.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
October 15, 2020 01:16 ET (05:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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