Fiat Chrysler reached an agreement with Unifor National before midnight deadline, avoids strike

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Fiat Chrysler Automobiles NV (NYSE:FCAU) inked a tentative a deal with the union representing its Canadian workers. The union said the agreement will include over $400 million in new investments and wage increments.

The automaker also agreed to invest $325 million to construct a new paint shop at its Brampton assembly plant.

Unifor National reached a deal with the automaker just before the midnight deadline. Speaking at the press conference, President Jerry Dias said ‘’we debated and argued but ultimately as we got to the deadline Fiat Chrysler agreed to match the pattern established by General Motors.”

The company will increase the pay of its traditional workers by 2 percent annually over the next four years, according to the terms of agreement. Fiat Chrysler will also raise the salaries of new workers every year, instead of a pay raise after three year previously.

The agreement is subject to the approval of union members.

Fiat Chrysler is the second biggest manufacturers and seller of light vehicles in Canada, with two major assembly plants in the country.

Fiat Chrysler (NYSE:FCAU) shares slightly rose in the pre-market on Tuesday. The 52-week range of the stock is $5.45-$10.86. The company’s market cap is $8.34 billion.

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