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.
General Motors and the United Auto Workers union reached a deal Sunday night, minutes before the union’s midnight deadline, averting any strike for now, according to the automaker.
The deal will be sent to the union’s UAW National GM Council for discussion and vote on Wednesday. The union’s national council is composed of local leaders. If approved, the agreement would head to workers for ratification.
Neither the UAW or GM released specific details of the agreement.
“We believe that this agreement will present stable long-term significant wage gains and job security commitments to UAW members now and in the future,” UAW President Dennis Williams said in a statement. “We look forward to presenting the details of these gains to local union leaders and the membership.”
11:59 p.m. Sunday.
That’s when the union said Saturday that their contract with General Motors will be terminated and they should be looking at a tentative deal outlining their labor conditions for the next four years.
The contract between the UAW and GM originally expired Sept. 14, but was extended as the UAW targeted Fiat Chrysler Automobiles to set the tone for the rest of the contract negotiations.
The United Auto Workers union could make its first real break into the southern U.S. by unionizing 165 “skilled trade” maintenance workers at Volkswagen’s Chattanooga plant, reported the Associated Press (via The Detroit News).
UAW Local 42 represents some workers at Volkswagen Chattanooga but does not have exclusive bargaining rights at the plant. A new election for union representation, which is being requested by maintenance workers at the plant, would give Local 42 exclusive bargaining rights for those workers.
The effort is part of a “renewed collective bargaining push” unrelated to the diesel emissions scandal, union officials told the AP.
The last election saw the UAW defeated in a 712-626 vote.
In the past few days there has been a flurry of posts about Fiat Chrysler Automobiles ending production of the Dodge Viper in 2017 and closing the Conner Avenue Assembly facility where the v-10 powered sportscar is hand-built.
When I see a news story, I’ll try to seek out the original reporting and if possible, the original source material. Now that I’ve seen that source material, and asked Conner’s plant manager about the matter, I’m not convinced that the Viper’s demise is a certainty. Viper fans shouldn’t go hanging snakeskin* crepe just yet. (Read More…)
A United Auto Worker retiree medical fund created to reduce healthcare costs and increase services for more than 700,000 people reported a $20.7 billion difference between assets and future liabilities, Bloomberg reported Wednesday (via Automotive News). The shortfall increased by more than $16 billion over the last report.
A similar system proposed for Fiat Chrysler Automobiles workers in the union’s first proposed contract — which was rejected by workers nearly 2-to-1 — was scrapped in the second contract.
Accounting for future inflation and longer average lifespan are to blame for the increased shortfall, according to the report. (Read More…)
On Wednesday night, as the deadline for strike action came closer and closer, the United Auto Workers-Fiat Chrysler Automobiles National Bargaining Committee announced they had “secured significant gains” over the last proposed tentative agreement that was widely rejected by UAW membership.
Details on the new agreement were not published.
The new proposed agreement averts a strike — for now — and will be sent Friday to local union leaders that comprise the UAW National Chrysler Council for discussion and voting.
“We heard from our members, and went back to FCA to strengthen their contract,” said UAW President Dennis Williams early Thursday morning in a statement. “We’ve reached a proposed Tentative Agreement that I believe addresses our members’ principal concerns about their jobs and their futures. We have made real gains and I look forward to a full discussion of the terms with our membership.”
FCA acknowledged they reached a new proposed tentative agreement with the union, but declined to give specifics due to the pending vote by UAW members.
Negotiators for the United Auto Workers and Fiat Chrysler Automobiles are working to avoid a strike as a deadline looms Wednesday for 40,000 workers at the automaker’s plants.
Reuters reported (via Automotive News) that talks were ongoing to move forward or present a new four-year contract to workers after hourly employees roundly rejected the last proposed deal. The Detroit Free Press reported that employees voiced displeasure with the “alternative work schedules” in the contract that would keep workers on four, 10-hour shifts instead of five, 8-hour shifts, sometimes switching between late night and early morning shifts within days.
The last strike at Chrysler plants lasted for only 6.5 hours in 2007.
United Auto Workers at a Kokomo, Indiana plant have given notice to Fiat Chrysler Automobiles that it would strike Wednesday night, Automotive News reported. The notice is reportedly being used at other plants.
The automaker acknowledged the notification via a statement released Tuesday:
FCA US confirms that it has received strike notification from the UAW. The Company continues to work with the UAW in a constructive manner to reach a new agreement.
United Auto Workers at Fiat Chrysler Automobiles officially rejected a proposed contract that would have raised wages for workers, but didn’t eliminate the tiered pay system for veteran and newly hired workers.
Reuters reported that 65 percent of the 40,000 union workers voted against the contract. Reports said that workers voiced concerns that the contract didn’t raise wages enough; created a lower-paid, “third” tier for parts and axle operations workers; and few details were provided for the health care co-op.
FCA relies heaviest among domestic automakers on lower-paid Tier 2 workers. Approximately 45 percent of hourly workers at FCA plants are Tier 2 workers.