A proposed contract between the United Auto Workers and General Motors will eventually end a tiered pay system divided between veteran auto workers and employees hired after 2008, and provide annual bonuses and substantial raises for the first time in a decade. The automaker has offered an $8,000 signing bonus to approve the deal.
The proposed deal outlines the automaker’s $8.3 billion investment in American plants — above its $6.4 billion improvements already announced — over the life of the contract. The deal was posted on the UAW website Thursday.
The deal for GM workers, which is sweeter than the deal hammered out between the UAW and Fiat Chrysler Automobiles, will be reviewed and voted on in coming weeks.
Fiat Chrysler Automobiles may double the amount of temporary workers it uses under a new deal negotiated with the United Auto Workers, Bloomberg reported (via Automotive News).
The negotiated terms include a provision for the automaker to use the workers any day of the week, instead of the previously allowed Monday, Friday and weekend shifts.
According to the report, the terms may have been negotiated as a way to keep labor costs lower and offer more workers raises. Temp workers are hired at rates lower than any of the tiered-pay scales. Temp workers can be terminated at any time by the automaker.
Representatives from the United Auto Workers and Fiat Chrysler Automobiles agreed Tuesday to extend their contract on an “hour-by-hour” basis, Reuters reported. Workers reported Tuesday for their morning shifts, but those workers could walk out at any time if talks stall.
The UAW is disseminating a message of hope on its YouTube channel, letting the members know the negotiations are going to be rosey, everyone is getting a pony, and you absolutely totally shouldn’t question their ability to negotiate better contracts.
The newest round of negotiations between the Big Three automakers and the United Auto Workers will focus on narrowing the gap between veteran workers and “second-tier” workers hired after 2011, Reuters is reporting.
Talks between the UAW, which represents around 138,000 workers, and Ford, Fiat Chrysler Automobiles and General Motors will begin Monday. The UAW’s contract with GM ends Sept. 14.
Union President Dennis Williams said he wanted to focus on narrowing the gap between veteran workers, who make on average $28 an hour, and workers hired post-recession, who make on average $16 to $19 an hour, according to the story.
With a CAW labor contract expected to be announced today, Fiat has confirmed that cars built in Italy will be exported to markets like the United States, as Fiat looks beyond its ailing home market for growth.
With the CAW’s strike deadline looming, Chrysler CEO Sergio Marchionne is taking a harder line in the media, pushing his vision of a profit-sharing agreement between Chrysler and the CAW, while boldly stating what everyone knows, but is afraid to say; auto makers have “other options” when it comes to building cars.