The United Auto Workers made it clear last week that the current contract offer by Fiat Chrysler Automobiles wasn’t good enough, voting it down by overwhelming numbers, including a 3-to-1 clip locally and a 2-to-1 ratio nationally.
Negotiations to come closer together on an agreement broke down Tuesday, and now a strike seems imminent.
In a letter to Fiat Chrysler vice president of employee relations Glenn Shagena, UAW FCA department vice president Norwood Jewell informed the automaker Tuesday morning that the union would terminate its Sept. 30 national contract extension agreement at 11:59 p.m. Wednesday.
The Detroit Free press reported Tuesday afternoon that Fiat Chrysler confirmed it had received a strike notice from the UAW, but added that negotiations were still ongoing.
UAW Local 1302 ratified both the local and national contracts, but president George Maus said he and his 340 union members aren’t frustrated with the situation.
“I think the membership understands solidarity and is ready to do whatever we’re asked to do,” Maus added.
Maus has seen three strikes in his 23 years as a UAW member, but never participated in an extended strike. But, in the event of an extended strike, those members who participate in picketing or other strike duty would see a $200 weekly wage as well as the cost of medical benefits, which are provided by the UAW strike and defense fund, a fund which has about $600 million in it.
With 7,000 members, UAW Local 685, the largest local in Indiana, emphatically voted down the national contract last week, voicing concerns of insurance uncertainty and a lack of a cap on the percentage of Tier 2 workers on its tiered-wage scale. Tier 2 workers make significantly less money on the hour, about $11, than their Tier 1 counterparts.
Local 685 president Carl Greenwood indicated he’s still hopeful there could be an extension, but in the case a strike becomes a reality, a plan of action has been in place for some time.
“We’ve got our burn barrels bought, we have our wood, we have our strike committees up and our strike captains assigned to the gates,” Greenwood said.
Greenwood added he would know more details about the impending situation Wednesday after he talks with administrators from the UAW international.
A strike would lead to the nationwide walkout of roughly 40,000 Fiat Chrysler employees who are UAW members. That’s a drop in the bucket compared to the 1.1 million UAW authorized workers who walked out of Chrysler facilities during the 1970 strike which lasted 67 days, but also won a 13 percent raise for its workforce.
Fiat Chrysler operates several facilities in Howard and Tipton counties. The roughly 8,000 employees at local facilities make up about one-tenth of Fiat Chrysler's North American workforce.
The local plants are the only locations where union-represented workers produce eight- and nine-speed transmissions for the Chrysler faction of FCA.
According to the Fiat Chrysler media website, the Kokomo Transmission plant, which employs about 3,300 workers, assembles transmissions for the Chrysler Town & Country, Dodge Journey, Dodge Grand Caravan, Jeep Grand Cherokee, Chrysler 300, Dodge Charger, Challenger, Durango and Ram 1500. It has produced eight- and nine-speed transmissions since 2012.
The Indiana Transmission Plants I and II in Kokomo employ roughly 2,600 workers who produce transmissions for Ram trucks, Jeep Cherokee and Renegade, as well as the Chrysler 200, Jeep Grand Cherokee, Dodge Durango, Challenger and Charger.
The Kokomo Casting plant employs nearly 1,300 workers who produce aluminum parts including transmission and transaxle cases, as well as engine block castings.
The Tipton Transmission Plant employs nearly 800 workers who assemble nine-speed transmissions for the Cherokee, Renegade and 200.
The Kokomo Transmission Plant began producing eight-speed transmissions in September of 2012, producing its one millionth such part in July of 2015.
Then in September, the Tipton Transmission plant celebrated the 1 millionth nine-speed transmission to roll off its assembly line, reaching that mark after 28 months of production.