GM – UAW Agreement Wearing Thin?

Edward Niedermeyer
by Edward Niedermeyer
gm uaw agreement wearing thin

GM's "ground breaking" deal with the United Auto Workers (UAW) was a national negotiation; implementation occurs on a plant-by-plant basis. The main issue facing local leaders: determining which jobs are "core" to auto assembly and must be paid the old $28/hr rate, and which are "second tier" and can be filled with cheaper labor. According to The Detroit News, at least three local UAW leaders have accused GM of trying to bring in hundreds more "second tier" workers than the agreement allows. Well they would, wouldn't they? The wage reductions constitute the contract's main financial benefit to GM (for which the automaker agreed to establish a $32b health care superfund). And the clock is ticking. "The lack of agreement on wages likely wouldn't cause major problems until later this summer, when GM will need to bring in new employees to fill spots vacated by workers who took retirement incentives or buyout offers."

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  • 50merc 50merc on Mar 17, 2008

    As the Beach Boys might have sung: When we go into the turns Lean with me and hang on tight We better turn on the lights So we can make cars cheaper tonight First tier (Union Union) fall from sight Second tier (GM GM) price is right (faster faster) Third tier (China China) fall from sight (faster faster) Faster Rick, it's alright Or if you like Hank Williams: There's a fear in my tier cause I'm crying' for us dear Jobs are on our Union mind.

  • Landcrusher Landcrusher on Mar 17, 2008

    I don't get it. Do they really need the new employees? They can't sell the cars they are making at a profit now. Haven't we all been convinced that they are building extra cars because they have to pay the labor anyway? Explanation? Anyone?

  • Edward Niedermeyer Edward Niedermeyer on Mar 17, 2008

    Landcrusher: Everyone currently gets $28/hr to do everything from assembly to janitorial services. Under the new plan, janitors, paintshop workers and other "non core" jobs get paid less... except that GM will be filling a lot of those jobs with "flowback" from failing suppliers, so yeah, the whole thing is basically a wash.

  • Juniper Juniper on Mar 17, 2008

    Edward Niedermeyer Under the new plan, janitors, paintshop workers and other “non core” jobs get paid less… As someone who has spent enough time around a production paint shop, I am shocked you would put paintshop employees in the same category as Janitorial. WADR you come on as an expert,but with comments like that I question your knowledge of automotive or any other kind of production processes.