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Fiat Chrysler North American Labor Chief Retires Early

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Maya Kammourieh2 years ago

Al Lacobelli, Fiat Chrysler Automobiles’ North American labor chief, has retired two months ahead of company negotiations with the United Auto Workers union.

He will be replaced by Glenn Shagena, 52, three years his junior. Shagena was FCA’s former head of human resources in Mexico.

UAW vs. U.S. Automakers

Due to a two-tiered pay and benefit structure for UAW-represented workers, Fiat Chrysler and two other U.S. automakers will be entering a difficult contract with the UAW. This is set to begin next month.

According to Reuters, the new contract would grant entry-level or second tier workers $15.78 to $19.28 per hour. Veteran UAW assembly line workers would continue to receive $28 to $28.50 per hour.

The veteran workers would also have richer benefits.

Statistics Regarding U.S. Automakers’ Two-Tiers

According to Reuters:

  • 45% of FCA’s UAW-represented workers are in the second tier. Their cost for wages and benefits for autoworkers is $48 per hour.
  • 29% of Ford Motor Co’s UAW-represented workers are in the second tier. Their cost for wages and benefits for autoworkers is $55 per hour.
  • 20% of GM’s UAW-represented workers are in the second tier. Their cost for wages and benefits for autoworkers is $58 per hour. 

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