A US$1b grudge drove GM’s shock suit against Fiat Chrysler

Iacobelli Dec19

SOUTHFIELD: General Motors Co. executives had laid the groundwork for a new labour agreement with the United Auto Workers union in September 2015. The company had met most of the union’s demands with a proposal that would have boosted pay and benefits by almost $1 billion over four years.

If the UAW’s then-President Dennis Williams had agreed and the deal been ratified, it would have set a precedent for similar accords between the UAW and Ford Motor Co. and Fiat Chrysler Automobiles NV. But instead, Williams balked and went to Fiat Chrysler to cut a pattern-setting deal that pushed GM’s four-year labor costs up by $1.9 billion.