The United Auto Workers (UAW) union and Fiat Chrysler Automobiles (NYSE: FCAU) have reached a tentative labor deal, ending two weeks of negotiations. The UAW, one of the country’s largest and most powerful labor unions, announced that negotiators had secured a total of $9 billion in investments, half newly announced and the other half announced earlier this year. Jodi Tinson, FCA spokeswoman, confirmed that a proposed tentative agreement had been reached.
The two sides reached the agreement following meetings at FCA’s Conner Center in Detroit, which used to be where the Dodge Viper was made. After a review by the UAW FCA National Council, the proposal would then face a ratification vote by the approximately 47,200 FCA workers represented by the UAW. FCA hourly and salaried members are expected to begin their vote on whether to ratify on Dec. 6. The process usually takes about two weeks.
FCA is the last of the big Detroit automakers to settle on a contract with the union. General Motors reached an agreement with the union on Oct. 31 after a bitter 40-day strike that cost the company nearly $3 billion. The path at Ford was considerably easier, with just three days of bargaining before a deal was reached.
FCA workers represented by the UAW have been working under a contract extension since the previous contract expired Sept. 14. While the workers are expected to approve the new contract, passage is not guaranteed. During 2015 talks, FCA workers rejected the initial contract proposal, which forced the union and company negotiators back to the bargaining table.
The proposed merger of FCA with Peugeot-maker PSA Group could complicate the vote. The proposed $48 billion merger between the two companies would create the world’s fourth-largest auto company, worth $50 billion. The merger plans were originally announced last month.