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Fiat Chrysler's UAW members ratify new four-year contract

DETROIT — The United Auto Workers union said on Wednesday that rank-and-file members at Fiat Chrysler Automobiles NV have voted in favor of a new four-year labor contract with the automaker, helping the Italian-American firm avoid a strike as it works to merge with France's Groupe PSA. FCA and PSA, the maker of Peugeot and Citroen, in October announced a planned $50 billion merger to create the world's fourth-largest automaker. FCA's 47,200 rank-and-file UAW members voted 71% in favor of the new contract. The deal follows contracts the UAW already concluded with larger rivals General Motors and Ford. “Every full-time production employee currently at FCA will be at top rate by the end of this four-year agreement,” Cindy Estrada, UAW vice president and director of the union's FCA department, said in a statement. She added that all temporary workers also have a path to full employment. “We are pleased to have reached a new agreement that allows us to continue our record of adding good-paying UAW-represented jobs,” FCA North America Chief Operating Officer Mark Stewart said in a statement. Ratification of the contract had not been viewed as a sure thing, as union members at FCA in 2015 rejected the first version of a contract. In addition, a federal corruption probe related to embezzlement at the union drew attention. The federal corruption probe led GM to file a racketeering lawsuit against FCA, alleging its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. The contract with GM that was ratified by workers in October followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW has said the contract with FCA included a commitment by the automaker to invest $9 billion, creating 7,900 new jobs over the course of the contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. The investments include $2.8 billion at Warren Truck Assembly plant in Michigan to build a new a plug-in hybrid SUV in 2021 and a potential increase of 1,500 jobs.

Jeep hiring 1,000 part-time workers in Toledo on Wrangler, Cherokee demand

The new Jeep Cherokee has been quite a success for Chrysler, but its factory workers are getting tired. The automaker has agreed to hire up to 1,000 part-time, temporary employees at its Toledo Assembly Complex where the CUV and Wrangler are built. It will allow the company to keep Jeep production moving, while giving laborers a break.
According to plant manager Chuck Padden in the Toledo Blade, full-time workers are regularly taking on 60 hours a week, and it's beginning to wear on them. "To get them more time off is important to us, to make sure they're refreshed, and can work safely," said Padden.
Chrysler has already hired 380 temporary, part-time workers for the plant, and 50 have been converted to full-time employees. The company is in the process of interviewing the rest of the new hires now and plans to have all 1,000 in place by the summer. They will work between 10 and 30 hours a week mostly on weekends for $15.78 per hour with limited benefits. The temporary positions will last "as long as demand continues for the Jeep Wrangler and the Jeep Cherokee," said Jodi Tinson, Chrysler spokesperson for manufacturing and labor communications, to Autoblog in an email.

Harsh words from senators over Chrysler's delay in reporting hack

The federal agency charged with protecting American motorists wants to know more about how hackers remotely commandeered and controlled a Jeep Cherokee. Hours after Fiat Chrysler Automobiles recalled 1.4 million cars affected by a flaw in their cellular connections, officials with the National Highway Traffic Safety Administration said Friday they'll further probe the defect by conducting a formal recall query investigation. "Opening this investigation will allow NHTSA to better assess the effectiveness of the remedy proposed," the agency said in a written statement. The remedy works, said Chris Valasek, one of the researchers who first discovered the security flaw. After testing for the vulnerability again Friday, he wrote on Twitter: "Looks like I can't get to @0xcharlie's Jeep from my house via my phone. Good job FCA/Sprint!" From his Pittsburgh home, Valasek had previously accessed and controlled co-worker Charlie Miller's Jeep along a St. Louis highway. Researchers have demonstrated remote hacks before, but the scope and severity of the Jeep vulnerability was unprecedented. The recall for a cyber threat was the first of its kind. Although a software patch and changes made by cellular provider Sprint appeared to fix the problem, news of the exploit and Chrysler's response brought a fresh round of consternation on Capitol Hill, where federal lawmakers had already expressed concerns about automotive cyber security. The Jeep hack elevated their concerns to a new level. "Cyber threats in cars are real and urgent, no figment of the imagination, as this huge recall demonstrates," said Sen. Richard Blumenthal (D-CT). "Incredibly, Chrysler delayed disclosing this chilling cyber-security danger egregiously and inexcusably, and strong sanctions are appropriate to send a message that other auto manufacturers will heed." Chrysler had known about the security gap since October, and Sen. Ed Markey (D-MA) wondered why it took the company so long to let customers know they were at risk. "Despite knowing about this security gap for nearly nine months, Chrysler is only now recalling 1.4 million vehicles to fix this vulnerability," he said. That's a potential pitfall for Chrysler, and something NHTSA will likely address in its investigation. Automakers are supposed to report safety-related defects to the agency within five days of discovery. But according to a chronology of events Chrysler submitted in its recall paperwork, it didn't inform NHTSA until July 15.