WRAPUP 1-Proposed Fiat Chrysler UAW pact gradually ends two-tier pay - sources
* Company $5.3 bln investment same as in rejected proposal
* New hires would get $29 per hour in 8 years
* Starting pay same as in rejected proposal, $17/hour
By Bernie Woodall and Nick Carey
DETROIT/KOKOMO, Ind., Oct 8 (Reuters) - The latest proposed four-year contract for Fiat Chrysler Automobiles NV's U.S. unionized workers would over time eliminate the much-maligned two-tier pay structure, allowing new hires to reach top pay within eight years, sources said.
The proposal agreed by United Auto Workers and Fiat Chrysler negotiators late Wednesday night would also increase the top pay for some second-tier workers to $29 in the course of the agreement, up from their current pay of about $19 per hour, sources said. That would also be up from about $25 top pay for second-tier workers that was in the proposed contract rejected last month by a nearly 2-to-1 margin.
The failure of the first agreement led the UAW to threaten a strike against Fiat Chrysler, which was to begin Wednesday at one minute before midnight eastern time. That would have been the first stoppage at a U.S. automaker since 2007.
There is no cap on the percentage of second-tier workers in the new deal. If one had been enacted, that could have created a permanent second tier while raising some to first-tier pay level, analysts said.
The sources would not say whether the company put more money on the table or if the same amount of spending in the previous agreement was reshaped. Continued...