UAW workers will ratify contract with GM. Here's what's next



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It appears that UAW members have ratified a new four-year contract with General Motors, which is expected to bring the six – Weekly nationwide strike in the end.

With more than 38,000 UAW members voting, more than half, or 57%, have ratified the agreement, based on Free Press estimates.

UAW is expected to issue an official declaration of results following the vote at 4 p.m. Friday. GM is expected to comment after the results are released.

But UAW Local 2209, which represents one of GM's largest Fort Wayne Assembly facilities in Fort Wayne, Indiana, released the results late Friday and confirmed the deal more narrowly. It reported 1 867 members who voted yes and 1,808 who voted no.

UAW Local 292, which represents hourly workers at Kokomo Operations in Kokomo, Indiana, rejected the proposal by 171 votes to 56, yes.

The nearly 46,000 union members will receive $ 11,000 of GM ratification bonuses. Temporary workers should raise $ 4,500.

GM will notify union workers through the normal channels about when to return to work, which will be as soon as possible. The strike cost the company $ 450 million a week, estimated the Center for Automotive Research, suspended production of key vehicles and will delay delivery of the 2020 medieval Corvette Stingray.

The impact of the strike goes beyond the car manufacturer.

Lear Corp. said Friday that the six-week strike represents $ 525 million in revenue for the provider of seating and electronic systems.

Lear, based in Southfield, lowered complete-year financial prospects, according to Crain & # 39; s Detroit Business. Net income for the third quarter fell 15 percent to $ 216 million. GM is Lear's largest customer and accounted for 18 percent of Lear's business last year.

The trade union said that the new contract will automatically make more than 900 temporary employees in January. After that, temporary workers would get permanent jobs when they accrued time on the job under the new contract. Their benefits are improved and the union has a voice in how many temps the company can add.

Similarly, all "in-progression" workers would receive a raise within 52 weeks of the last raise. Under the old contract, those hired after 2007, called immigration workers, start at $ 17 an hour and can go up to $ 28 an hour after eight years. This new agreement allows them to reach $ 32.32 an hour when the new contract expires in 2023.

At Local 163, which represents GM Romulus Powertrain, 1,064 members of around 1100 voted in, said Ralph Morris, president of the local. He said many workers live as far away as Flint and Toledo, but that they drove in to vote.

But during the information meetings, there were many "passionate" questions surrounding the contract, he said.

"Someone liked it There were no increases in their health care system, they liked that the cap was raised to get salaries to help staff in development," Morris said, "But it was a mixed bag. It was a slam dunk "No, but many of them felt it was an improvement from the current plan, and that it was a way for temporary staff."

GM will call some local 163 workers asking them to work Saturday and Sunday, Morris, they'll be paid a month and a half for that work, Monday would be full production day, he said.

Next time!

UAW will move on to negotiate a new tentative deal with Ford Motor Co. and Fiat Chrysler Automobiles , and use the GM contract as a template. On Saturday, the union is expected to announce which company it plans to negotiate with next.

A local UAW executive at a General Motors facility said the union will face challenges at Ford Motor Co. and Fiat Chrysler Automobiles when they lead f or negotiations with those companies next.

“Ford really wanted the health care system to be reduced, and Chrysler has the biggest problem with four levels of 10,000 temporary workers. Chrysler is going to be very challenging, ”said the local officer. "It will be interesting to see what Chrysler will do with 10,000 temps."

Flint Assembly electrician Mike Thomas sits outside General Motors Flint Assembly while on strike 16 October 2019. (Photo: Ryan Garza, Detroit Free Press)

This officer said that Ford should have the easiest time because Ford's top Ford dealership, Rory Gamble, has a lot of experience and a good relationship with Ford's negotiating team.

"They have a strong ability to collaborate, so they should have no problems at all," said GM local leader.

What worked for GM and the UAW in negotiations is not necessarily an appropriate fit for Ford and the FCA, said David Kudla, CEO of Mainstay Capital Management.

"GM was able to admit wage growth and health care costs to the ability to close three factories," Kudla said. "Ford and FCA did not have three factories that they wanted to close, but will have to work around this new framework for higher wages and unchanged health care that UAW and GM have set."

The trade union has said that significant progress has been made in questions during the subcommittee with both car manufacturers, but final financial regulations and production promises remain to be worked out. This means that the contracts remain uncertain and that both companies are still vulnerable to strike if the union negotiators will play that card.

"Just because there was a GM strike doesn't mean the other two are off the hook," said Kristin Dziczek, vice president of the Center for Automotive Research in Ann Arbor.

Separately, the UAW Mack Truck Council announced late Thursday that they have reached a preliminary agreement, suspending a nearly two-week strike. Mack workers are scheduled to return to their jobs. Mack Trucks has five facilities in Pennsylvania, Maryland and Florida.

The bitter battle

The strike against GM has been prolonged and at times painful. At one point, a public exchange of words got GM insinuating that UAW was moving too slowly in the negotiations and did not respond to the company's proposal. UAW fired back that GM did not take the union seriously.

After that, it took the heavyweights who came to the table to reignite the progress toward a deal. GM CEO Mary Barra and UAW president Gary Jones met with dealers just days before the two sides finally reached a tentative deal.

( Photo: Ryan Garza, Detroit Free Press)

Many UAW executives and labor experts said that despite the lengthy and at times controversial negotiations, the deal is a big win for UAW-represented workers at 55 GM plants in 10 states had been on strike since 12:01 16 September.

The agreement provides for 4% one-time salary payments in year one and three and 3% increase in basic salary in alternating years. It gets rid of temporary employee status and has an hourly share of health costs at 3%, among other provisions.

It also keeps GM's Detroit-Hamtramck plant in operation by adding an electric pickup and other electric trucks. GM will invest $ 3 billion in the plant, which will also assemble batteries, bringing in 2,225 new jobs at full volume.

The Warren Tech Center will receive a new vehicle program, $ 200 million investment and retention of approximately 75 jobs under the agreement. Lansing Delta and Spring Hill, Tennessee, assembly plants get a next-generation mid-size SUV assembly worth $ 1 billion and 5,000 jobs.

But the Lordstown Assembly Plant in Ohio and a transmission facility in Warren and Baltimore will remain closed.


The ratification vote comes at a crucial time. The strike has already cost GM nearly half a billion dollars a week. Anderson Economic Group in East Lansing said it cost GM another $ 400 million for the whole of next week for the union to stay out and conduct ratification meetings with ballots due October 25.

GM has had to shut down other North American plants temporarily. On October 19, GM halted production of its new Chevrolet Blazer SUV in 2020 at its Ramos Arizpe Vehicle Assembly in Mexico due to a sub-shortage of UAW nationwide strikes.

GM's decision to build the Blazer in Mexico instead of a US plant was a sore point with UAW, which is also cheap Mexican manufacturing in general.

Also GM's production of Chevrolet Silverado and GMC Sierra pickups in 2020 at its Silao Assembly Plant in Mexico along with production of the previous generation pickups at GM's Oshawa plant in Ontario, both went down during the strike because of a partial shortage.

The Corvette plant in Bowling Green, Kentucky, was to be reset this month to build the much-awaited Stingray 2020, but it will be delayed as it completes orders for the 2019 model.

Many of GM's car dealers complained of a lack of parts to perform service repairs. And 100,000 related workers saw earnings impacted by the strike, economists said.

Similarly, UAW workers received $ 250 a week for almost a month until the union raised the strike wage to $ 275 a week in the week of October. 13. The cost to UAW workers is $ 14 million per day while still on strike and not working, Anderson Economic Group said.

Terms and Conditions

Here are some highlights of the new contract:

  • UAW-represented GM workers will receive a $ 11,000 bonus upon ratification of the agreement. Temporary workers receive $ 4,500.
  • So-called development workers hired after 2007 get a faster path to top pay. Under the previous contract, these workers started at $ 17 an hour, reaching $ 28 / hour after eight years. The proposal shortens it to four years.
  • Temporary workers, who have been paid $ 15-19 per hour with poorer benefits to regular autoworkers, will find a way to a permanent role as of next year. Part-time workers get a way to normal status from 2021. These workers also get better paid and unpaid leave.
  • The union has full approval authority and the ability to monitor the number of temporary staff working in the facilities. Furthermore, the company must now have the union's approval to supplement the workforce for timely, overtime or weekend work in a facility covered by UAW GM's national agreement. The company may use part-time temporary employees only with UAW approval.
  • GM will invest $ 7.7 billion in US facilities to create or maintain 9,000 jobs.
  • Newer unions with two weeks of vacation a year will take one of those weeks when they choose, instead of having to take both paid vacation weeks during scheduled shutdowns.
  • The $ 1,000 profit sharing formula for workers for every $ 1 billion in North American profits before advances remains unchanged, but the $ 12,000 cap is removed.
  • There are assistance packages for workers in the Lordstown, Warren, and Baltimore transmission facilities, including $ 75,000 payments for qualified production workers and $ 85,000 for skilled workers who leave. There are also buyout options for those who are not eligible to resign.
  • Although joint activities focusing on health and safety and other issues between the Union and GM continue, the UAW-GM Center for Human Resources will be dissolved under an Understanding Memorandum. The center has been involved in the UAW corruption scandal, and several people linked to the operation of the center are accused of misusing funds. The Free Press had previously reported on the likelihood of closure.

More: UAW-GM agreement requires increases, $ 11K ratification bonus, Lordstown closure, way for temps

More: UAW got a good deal from GM , supervisors, experts say

More: Fallout from UAW GM strike continues with Blazer construction stopped in Mexico [19659070] Contact Jamie L. LaReau at 313-222-2149 or . Follow her on Twitter @ jlareauan . Read more on General Motors and sign up for our car newsletter .

Read or share this story: general engines / 2019/10/25 / g-uAW-strike-contract or update / 4057059002 /

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