Averting Union Strike in Canada: Fiat Chrysler Reaches Last Minute Deal With Unifor

Fiat Chrysler Automobiles last Tuesday, reached a last-minute settlement with Unifor avoiding a labor disruption at the company's three Canadian assembly plants. Following the footsteps of the United Auto Workers in the United States, Unifor also wanted the same contract terms from the Detroit-based carmakers so that the latter do not have an advantage on labor cost.

NYTimes reports the agreement would apply to 10,000 Canadian Fiat Chrysler workers. The deal also includes a few concessions for new investments, which is similar to what was offered by the General Motors earlier in September.

Last-minute tentative deal averts strike at Fiat-Chrysler https://t.co/f5UIZXiYwt

— Local Xpress (@xpress_local) October 11, 2016

Marchionne Comes To The Rescue:

Jerry Dias, Unifor's President, said earlier that the deal couldn't have been possible without the intervention of Sergio Marchionne, chief executive of Fiat Chrysler Automobiles. Dias also added that Sergio Marchionne is not any charm school graduate and that they had to debate for quite a while to agree for the deal. The union also made it clear in the conference that Fiat Chrysler would be investing in an old assembly plant located in the suburban part of Toronto.

The Ontario based company denied to comment further until the unionized workers ratified the deal. Mr. Dias however, said that the Union vote would take place later this weekend. According to YahooFinance, Fiat Chrysler had agreed to invest $246 million for rebuilding the paint shop in its Brampton assembly plant. The union is also reported to seek support from the government as well, in order to help in the rejuvenation of the rest of the factory.

Fiat-Chrysler, Unifor avoid strike by minutes https://t.co/UvpdZwi5dE pic.twitter.com/FC6iM4hvFr — HuffPost Canada (@HuffPostCanada) October 11, 2016

What would happen if the deal failed?

A walkout from either side would definitely affect Fiat's only minivan plant in Windsor. Other factories including the assembly plant in Brampton as well as the aluminum casting factory in Toronto would also be affected. As the majority of vehicles, Fiat Chrysler manufactures in Canada, are sold in the United States, the strike would have left a major impact on the American market.

Mr. Dias said earlier that just as the Union did with General Motors, the negotiations are still focused on preserving jobs in Canada. The main concern of Unifor is regarding the jobs involved in the Brampton factory. The plant is known for its production of a line of cars, including the Chrysler 300. However recently, Fiat's greatest sales have come from sport utility vehicles, particularly its Jeep brand, and Ram pickup trucks, which are not manufactured in Canada.