DETROIT - United Auto Workers leaders from Fiat Chrysler Automobiles NV’s U.S. plants on Wednesday recommended approval of a tentative labor agreement that would allow the Italian-American automaker to avoid a strike as it works to merge with France’s Groupe PSA.
Fiat Chrysler and PSA, the maker of Peugeot and Citroen, in October announced a planned $50 billion merger to create the world’s fourth-largest automaker. The investments include $2.8 billion at Warren Truck Assembly plant to build a new a plug-in hybrid SUV in 2021 and a potential increase of 1,500 jobs.
While the deals with GM and Ford were approved, ratification is not 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 could also raise doubts among union members about the deal’s terms.
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