Two down, one to go.

That’s what Unifor national president Jerry Dias said early Tuesday, after announcing his bargaining team reached a tentative agreement with Fiat Chrysler just minutes before the midnight deadline.

Almost 10,000 members will be eligible to vote Sunday on the deal that matches the pattern established by Unifor with General Motors last month, including a defined contribution pension plan for any future hires.

That deal, ratified by GM workers by only 64.7 per cent, includes a 2 per cent wage increase this year and another 2 per cent increase in September 2019. There is also a $6,000 signing bonus plus lump-sum bonuses of $2,000 in each of the next three years to most employees.

Dias argues the big win was a $325 million commitment to rebuild an aging paint shop at the Brampton assembly plant, which should pave the way for future work.

The plant currently builds the Chrysler 300, Dodge Challenger and Dodge Charger, but discussions with both federal and provincial governments will continue on possibly other platforms.

“We’ve been trying to win this (paint shop) investment for over 10 years. The fact that we were finally successful is huge,” Dias said, arguing this ensures a long-term future for the plant.

“Nobody likes to throw $325 million down the toilet.”

Kristin Dziczek, director of research at the independent Center for Automotive Research in Ann Arbor, Mich., says a paint shop is a big investment for an automaker, and rebuilding an older shop allows for both energy savings and better environmental performance.

“Generally, it’s a vote of confidence that they will continue production at the site,” she said.

However, up to 200 workers at Fiat Chrysler’s Etobicoke casting plant, which has about 450 unionized employees, could receive layoff notices, though all will be guaranteed jobs at the Brampton plant, Dias said.

The Etobicoke plant builds vehicle components, notably those used in the Jeep Cherokee, as well as the Chrysler 200 and Dodge Dart, both vehicles that are being phased out.

Dias said the company has agreed to spend $6.5 million to upgrade machinery and review the Etobicoke plant. The union had negotiated a closure agreement about the plant back in 2008, and it’s still operating today.

In Windsor, Fiat Chrysler earlier made a $2.6-billion investment for the assembly plant, which builds various minivans and will soon make a plug-in hybrid Pacifica, expected to roll out later this year.

Dias credited a meeting with Fiat Chrysler CEO Sergio Marchionne on Saturday in Toronto for getting the deal done.

“He runs a global multinational company, but he’s a proud Canadian,” Dias said. “The focus of our conversation was about finding solutions … in my opinion he has a strong commitment to Canada.”

If the deal is ratified, Unifor will then turn to Ford next Monday, with an Oct. 31 strike deadline.

Loading... Loading... Loading... Loading... Loading... Loading...

At Ford, Unifor could be facing a battle within its own ranks. Dave Thomas, president of Local 707, which represents Ford’s workers at the Oakville assembly plant, has already put the company and national union on notice that his members won’t accept the pattern negotiated at GM.

In a letter to members, Thomas acknowledged that Unifor’s priority has been winning investment in Canada, but insisted it will not be at the expense of the rest of the membership.

“We as a local bargaining committee will not sacrifice the needs of the membership in Oakville and settle on an agreement that doesn’t address our issues,” Thomas wrote.

Thomas has not returned repeated calls for comment. Dias said he hasn’t had any conversations yet with Thomas or other Local 707 officials, insisting there’s no spat, rather he has been focused on Fiat Chrysler talks.

Some Ford workers have called the deal a “concessionary” agreement, arguing now is the best time to win significant improvements, including shrinking the 10-year timetable for new hires to match other Ford employees.

At the Oakville plant, about 2,200 employees have been added, but they are at the bottom of the pay scale, and are keen to make up ground, especially given Ford’s record profits.

“I will leave it up to my members to decide, and I will always respect the decision they make,” Dias said, arguing the wage grid has improved in the GM contract, which will see immediate benefits for newly hired employees.

“If our members want to strike because that’s not enough, I will respect their wishes,” he said.

Dziczek of the Center for Automotive Research said pattern bargaining has long been in use.

She said the parties could reach an agreement that matches the pattern, but could make adjustments to fit different needs, such as small changes within a pay grid, but not altering the timetable.

“It is not all cookie cutter, there can be trimming around the edges,” Dziczek said.