General Motors' public listing of UAW's contract offer promises 5,400 jobs and $ 7 billion in US investment during the US investment over the next four years, but details behind the public overview are more nuanced.
People familiar with the offer, who were made to UAW just hours before the 2015 contract expired on Saturday night, told Free Press that half of the 5,400 jobs would be new, and the rest to be counted as a whole retained because of new investment.
And even if the $ 7 billion would be invested in facilities with UAW representation, some would be joint ventures with contracts separate from the union's contract with GM. Not all the money will come from GM either.
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The workers leave the Flint Assembly facility early on Monday, September 16, 2019 while participating in a national strike against General Motors after stopping contract negotiations with General Motors.
The workers are in the first national UAW strike since 2007. (Photo: Ryan Garza, Detroit Free Press)
Much of the offer remained on the table Wednesday, sources close to the negotiations say.
Here's how some of the investment might work:
GM's Brownstown Battery Assembly Plant, located west-west of Trenton, assembles lithium-ion battery packs for the Chevrolet Malibu Hybrid and for customer care and Aftersales. The facility is a joint venture with Honda.
Brownstone employs UAW representatives, but they have a separate joint venture contract than UAW has with GM. Brownstone's workforce is paid less and has other benefits than UAW-represented GM workers, a source said.
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An unknown portion of the $ 7 billion could go to such joint ventures or entities with separately negotiated contracts, sources said. The UAW membership is likely to oppose such conditions because over time as technology changes, the lower-paying jointly-controlled jobs could replace other, higher-paid union jobs, a work source said.
All the terms are still negotiated.
GM declined to comment on the details of the proposed investment and jobs. UAW also declined to comment on details during the discus.
In the statement on Sunday, GM said: “We presented a strong offer that improves wages, benefits and grows American jobs in substantial ways, and it is disappointing that UAW management has chosen to strike at midnight tonight. We have negotiated in good faith and with a sense of pressure. Our goal remains to build a strong future for our employees and our business. ”
A few details
Some details Free Press has learned is that the offer included a 2% pay rise for UAW workers for the first and third years of the four-year contract and 2% one-time payments in the second and fourth years. The 2015 contract increased wages by 3% in the first and third years by a 4% lump sum increase in the alternative years.
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The health care system is one of the main points of the negotiations that helped the negotiating committee reject GM's original proposal, sources told Free Press.
One person said that GM has proposed that workers pay 15% of health care costs, up from the current estimated level of 3% of health care costs. Another person familiar with the calls said GM's offerings retain today's healthcare at the same price.
GM and Ford each spend $ 1 billion a year on employee health care, which some industry observers consider unsustainable. The average American worker pays about 28% of health care costs, according to the Center for Automotive Research in Ann Arbor.
GM has stated in its offer that they also offered solutions for "unassigned" assembly plants in Michigan and Ohio. It is in reference to GM's announcement last fall that it would be idling at two transmission plants, one in Warren and one in Baltimore; along with the Lordstown Assembly in Ohio and the Detroit-Hamtramck Assembly.
GM's proposed solutions will include the construction of an electric pickup and batteries in Detroit-Hamtramck and a battery cell factory in part of Lordstown. GM continues discussions to sell Lordstown to an investment group that includes electric truck manufacturer Workhorse.
GM's public record of the proposal also includes investments in eight facilities in four states, additional new vehicle and propulsion programs, an improved profit sharing formula, ratification of $ 8,000, and retention of health benefits including new coverage for autism therapy, chiropractic care and allergy testing.
Two important UAW questions were asked: Evening pay for workers "in progression" employed since 2007 who are paid less than inheritance workers; and create a path to permanent employment for temporary workers. GM is known for more flexibility in the use of temporary workers.
Contact Jamie L. LaReau at 313-222-2149 or email@example.com . Follow her on Twitter @ jlareauan . Read more on General Motors and sign up for our car newsletter .
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