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UAW turns its focus to Fiat Chrysler, which may resist more than Ford did

DETROIT — The United Auto Workers union on Monday turned its bargaining focus to Fiat Chrysler, raising the possibility of another strike against a Detroit automaker. Ford workers ratified their contract Friday night, while the union settled with General Motors last month after a 40-day strike by 49,000 workers that shut down the companyÂ’s U.S. production. Ford, which has 55,000 UAW workers, mostly followed the pattern agreement set at GM. But industry analysts say the same deal will cost Fiat Chrysler a lot more money because of the makeup of its workforce. Fiat Chrysler CEO Mike Manley said recently that automakers are in “different conditions” in terms of labor forces, hinting the company may be reluctant to follow the pattern. The union, however, expects FCA to follow the template set by GM and Ford. “We look forward to bargaining a fair, balanced and patterned contract as FCA is a profitable company,” the UAW said in a statement. “You cannot brag about your earnings to Wall Street and at the same time ignore the sacrifice of your workforce that put you in that profitable position.” The deal with Ford and GM gives workers hired after 2007 pay raises so they reach top UAW production wages within four years. It also gives temporary workers a path to full-time jobs within three years. Workers hired after 2007 now are paid lower wages than workers hired before that, even though theyÂ’re doing the same jobs. Workers hired before 2007 get a mix of annual pay raises and lump sum payments. Fiat Chrysler has more workers hired after 2007, and a higher percentage of temporary workers than either Ford or GM. That means the terms of the contract would cost the company more money, said Kristin Dziczek, vice president of labor and manufacturing with the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan. “They are looking at significant cost increases,” Dziczek said of FCA. She says a strike against FCA isnÂ’t out of the question, and depends on how willing the company is to follow the pattern set by Ford and GM. FCA said in a statement it welcomes bargaining toward a deal to keep investing in the companyÂ’s future and creating opportunities for employees and communities. Ford has about 18,500 workers hired after 2007 who will get big pay raises with the new contract, compared with GM's 17,000. But Fiat Chrysler has over 20,000 union employees hired after 2007.

2020 Chrysler Pacifica pricing set: Here's how Voyager and Pacifica lineups compare

Fiat-Chrysler shooed the irritant Dodge Grand Caravan out of the product mix for cannibalizing Pacifica sales, then created the Voyager to lure minivan buyers who need an inexpensive minivan fix across the lot. The 2020 Voyager L and LX, which replace the entry-level Pacifica L and Pacifica LX, costs $250 less than the respective 2019 Pacifica models. Chrysler's held the line on the starter Pacifica pricing while revamping the trim arrangement. For 2020, the Pacifica Touring becomes the base retail Pacifica model, and the Touring Plus goes away. Cars Direct has found that the 2020 minivan in base Touring trim will cost $34,990 after a $1,495 destination fee. That's the same price as the 2019 Touring Plus. Let's explain the trims before we get to the rest of the pricing, because it's a little funky. In 2019, the trim steps went Pacifica L, LX, fleet-only Touring, Touring Plus, Touring L, Touring L Plus, and Limited. Those first three iterations have become Voyagers L, LX, and LXi — the fleet-only 2019 Pacifica Touring has been replaced by the fleet-only 2020 Voyager LXi. So we'll recap the entire price lineup to make it clearer: Voyager L, $28,480 ($250 less than the 2019 Pacifica L) Voyager LX, $31,290 ($250 less than the 2019 Pacifica LX) Voyager LXi (fleet), $34,490 ($500 less than the now-retired, fleet-only 2019 Pacifica Touring) Pacifica Touring, $34,990 (Same price as the now-retired 2019 Pacifica Plus) Pacifica Touring L, $38,240 ($50 less than in 2019) Pacifica Touring L 35th Anniversary, $40,230 ($75 less than in 2019) Pacifica Touring L Plus, $41,040 ($100 less than in 2019) Pacifica Touring L Plus 35th Anniversary, $42,335 ($225 less than in 2019) Pacifica Limited, $45,940 ($250 less than in 2019) Pacifica Limited 35th Anniversary, $46,735 ($150 less than in 2019) Now that Fiat-Chrysler's rationalized the offerings, the absence of advanced technology features on the Voyager trims won't surprise anyone. Voyager infotainment begins and ends with the seven-inch Uconnect touchscreen; the larger 8.4-inch screen is forbidden. The Voyager LXi becomes the fleet model, sparing the Pacifica nameplate that ignominy. Driver assistance tech in Voyagers will be limited to the cost-extra rear park assist, blind-spot monitoring, and rear cross traffic detection. Adaptive cruise control and autonomous braking aren't offered. If you want those, you have to shift up to the Pacifica Touring, which can add them with the $995 Advanced Safetytec Group.

How GM ended up suing its crosstown rival Fiat Chrysler

DETROIT — Automakers sue each other on occasion, but no one in Detroit can remember one accusing another of bribing union officials to get an unfair labor cost advantage. Yet thatÂ’s what happened Wednesday when General Motors filed a federal racketeering lawsuit against Fiat Chrysler Automobiles. ItÂ’s based on a widening federal investigation into corruption involving officials of the United Auto Workers union, and shortly after the lawsuit was filed, the unionÂ’s president Gary Jones stepped down. The 95-page complaint could affect ongoing contract talks between the union and Fiat Chrysler, the lone automaker of DetroitÂ’s big three thatÂ’s still in negotiations. It also could cause jitters with French automaker PSA Peugeot, which has reached an agreement to merge with the Italian-American automaker. Here are some questions and answers about the lawsuit and its impact: Why did GM sue? GM alleges that Fiat Chrysler senior executives, including now-deceased CEO Sergio Marchionne, paid $1.5 million in bribes to UAW officials for nearly a decade and corrupted the bargaining process with the union in the 2009, 2011 and 2015 contracts to gain advantages over General Motors. The lawsuit says that because of the bribes, which were funneled through a joint UAW-Fiat Chrysler training center, the union allowed Fiat Chrysler to use more lower-paid temporary workers. Also, FCA in 2015 did not have to limit the number of newly hired workers who make less and get lower-cost benefits than older workers hired before 2007. GM contends it couldnÂ’t negotiate similar union concessions that FCA was able to get through bribery. GM could only hire a limited number of temporary and lower-paid new workers, called “second tier” workers, which unfairly increased its labor costs by billions of dollars. It alleges the higher labor costs had another purpose — to force GM into a merger with FCA that Marchionne wanted. GM did wind up with higher labor costs, which until the lawsuit had not been linked to the federal corruption probe. Before contract talks with all three automakers began last summer, the Center for Automotive Research, an industry think tank, determined Fiat ChryslerÂ’s total hourly labor costs including wages and benefits were about $55 per hour, $8 less per hour than GM and $6 lower than Ford. At a Wall Street conference in New York on Thursday, GM CEO Mary Barra said her company can compete on a level playing field.