DETROIT -- Fiat Chrysler Automobiles and the United Auto Workers union ( UAW) reached a tentative agreement on a four-year labor contract covering wages, benefits and job security for 47,200 workers, in addition to $4.5 billion in new factory and product investments.
The UAW said Saturday the contract included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract.
Fiat Chrysler confirmed it had reached a deal with the UAW and said further details will be provided later.
The agreement's terms are expected to echo those under the new contracts with General Motors and Ford, as the UAW typically uses the first deal as a pattern for the others.
“Out of respect for our members, we will refrain from commenting any further or releasing full details of the agreement until the UAW-FCA Council leaders meet and review the details,” Cindy Estrada, head of the union's FCA bargaining unit, said in a statement.
Estrada said negotiators secured an additional $4.5 billion of investments during the talks, in addition to previous plans for a $4.5 billion investment to open a new assembly plant in Detroit and revamp several other facilities in Southeast Michigan.
FCA agreed not to close assembly plants during the life of the contract and to invest in its factory in Belvidere, Illinois, that builds Jeep Cherokee SUVs and employs almost 3,700 hourly workers, Bloomberg reported. The fate of the facility had been a subject of speculation because the company eliminated a third shift there earlier this year, dismissing more than 1,300 workers.
A council made up of officers from UAW locals that represent Chrysler's U.S. workers must approve the agreement before it's presented to members for ratification, a spokesman said. The union said the council will review the pact on Wednesday, Dec. 4.
If cleared by the council, FCA workers would hold ratification votes starting Friday Dec. 6, the union said.
FCA workers waited during a 40-day UAW strike at GM and then it took three weeks for the union to get a deal with Ford ratified before FCA talks went back on the front burner.
Several major developments emerged during the FCA negotiations: In late October, the company announced it planned to merge with PSA Group, a move that would create the world's fourth-largest automaker. That news has been met with skepticism from some workers, and it came just four months after FCA backed out of a potential merger with Renault, another French automaker.
Last week, GM filed a racketeering lawsuit claiming that FCA corrupted labor contracts signed with the union in 2011 and 2015. UAW President Gary Jones also resigned.