Fiat Chrysler Automobiles (NYSE:FCAU/Fiat-Chrysler-Automobiles/" rel="13623">NYSE:FCAU) continues negotiations with the United Auto Workers (UAW) over a new four-year agreement after the two sides extended their current contract on an hour-by-hour basis.
The current four-year contract expired at midnight on Monday.
Ford Motor (NYSE:F) and General Motors (NYSE:GM) have extended their contracts with the UAW indefinitely.
The UAW is seeking to close the pay gap between the tiers of workers, and possibly limit the number of lower-paid employees at each of the three companies.
The UAW’s contracts with the Detroit car makers cover around 140,000 U.S. factory workers.
Fiat Chrysler was picked by the UAW as its target company in the contract talks. A deal between UAW and Fiat Chrysler might set a general pattern for contracts at GM and Ford. Fiat Chrysler might also be hit with a strike if negotiations halt.
Shares of Fiat Chrysler rose as much as 3.1% as of $8.36 a.m. in New York premarket trade.