A Wage Hike for Workers, a Win for Fiat

Since 2007, workers at Fiat Chrysler’s U.S. plants have fallen into one of two wage categories: veteran employees who earn about $28 an hour, or Tier 1; and newer hires who make about half that, or Tier 2. The system, agreed to by the United Auto Workers (UAW) to help the Big Three automakers stem losses during the recession, turned a job that helped create the American middle class into one that for some barely paid the bills.

Detroit’s autoworkers want that tiered pay scale abolished, and, starting with Fiat Chrysler, they’re closer to that goal. The automaker and the union reached a tentative agreement on Oct. 7 setting higher wages for all workers, averting a strike that would have crippled production. It would create a path for entry-level workers to eventually reach the highest pay grade, more than $29 an hour, with increases beyond that based on seniority.