Fiat Chrysler Automobiles NV reached an agreement in advance with more than 9,000 Canadian employees of expired cars wednesday night, avoiding a eleventh-hour strike.
Unifor, which represents about 20,000 employees of Canada’s top 3 automakers, said the two parties reached an agreement less than 10 minutes before the deadline. The union refused to disclose the main points of the new contract before a press conference scheduled for Thursday at 10 a. m.
The agreement came after approximately two weeks of negotiations that continued over the long Thanksgiving weekend in Canada. Most stakeholders are hired at Fiat Chrysler’s assembly plant in Windsor.
The Windsor plant accounts for approximately 10% of Fiat Chrysler’s North American production and is known as the “truck cradle,” according to Kevin Tynan, senior analyst at Bloomberg Intelligence.
“From a product perspective, there are worse platforms and nameplates that can remain inactive for a while, but a closure would not be absolutely insignificant,” he said. “FCA’s product portfolio is clearly very truck-oriented, so while Ram or Jeep models are not, they are successful sets that are vital to the American business. “
Fiat Chrysler manufactures its Pacifica minivan, a less expensive edition called Voyager, and the Chrysler Grand Caravan at the Windsor plant. In June, it eliminated 1,500 jobs at the facility, resulting in weak demand.
The automaker also has plants in Etobicoke and Brampton, Ontario, and other operations in Mississauga, Ontario; Montreal, Quebec; and Red Deer, Alberta. The Chrysler 300 and Dodge Charger and Challenger are manufactured on brampton’s site, old-fashioned sports cars built on an ageing platform.
Brampton wants more than the long-term Challenger, and a crossover on a minivan platform would make sense for Windsor, given other adjustments to Fiat’s lineup, said Sam Fiorani, vice president of AutoForecast Solutions in Chester Springs, Pennsylvania.
“There is room for some other two-rig model, however the plant has operated in 3 shifts for so long that the staff are more than fit to load some other high volume product,” he said of the Windsor plant.
Fiat Chrysler is in the midst of a high-level merger with French automaker PSA Group. closing in the first quarter of 2021.
In September, Unifor signed a three-year deal with Ford Motor Co. , which included nearly Can$2 billion (US$1. 5 billion) in investments, totaling Can$590 million in government subsidies, to produce electric battery cars in the company. Oakville, a suburb of the city west of Toronto. Discussions with General Motors will last.
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