GM and UAW Agree On "Same But Different" Contract Modifications

Edward Niedermeyer
by Edward Niedermeyer

The Freep reports that the newest UAW deal is similar to the recently-approved Ford deal in terms of economics, but is “drastically different” in other areas. How drastically? There are”no mandatory physical examinations in the UAW GM agreement,” according to the Freep’s union source. Also, “with regard to employee placement, other parts of the agreement are different to better fit the UAW GM culture.” Which doesn’t exactly sound encouraging. The Freep wanted to know more (don’t we all), but when asked, “A GM spokeswoman declined to comment. A UAW spokesman didn’t respond to questions.” Great. But it’s probably not worth losing sleep trying to discover the details (not that we wouldn’t love to have someone send us a copy). Locals won’t have the opportunity to approve the contract modifications until GM completes its debt restructuring anyway. Which has been dragging on for months now with no end in sight. If the locals even approve the deal which, based on Ford’s 58 percent approval showing, is hardly a foregone conclusion.

UPDATE: Bloomberg quotes anonymous sources as saying GM expects savings from its UAW Agreement to double Ford’s which are estimated at $500M. Huh? “You’d think it would be proportional to us,” puzzles Ford Manufacturing boss Joe Hinrichs. Ford’s agreement reportedly cuts total compensation from $60/hr to $55/hr, and to $50/hr by 2011. Transplants average $48-$49/hr today, says Bloomberg. So did GM get more out of the UAW? “GM has been very adept in the past at choosing the best figures that suit their case,” explains labor professor Gary Chaison. Gotcha.

Edward Niedermeyer
Edward Niedermeyer

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  • Segfault Segfault on Mar 11, 2009

    "Same but Different" --> "Separate but Equal?"

  • GS. GS. on Mar 11, 2009

    The UAW is tired of the news media "Wanting To Know", and then telling only what they want tell, and in a biased viewpoint to serve their own agenda. GS.

  • Happy_Endings Happy_Endings on Mar 11, 2009
    GM has been very adept in the past at choosing the best figures that suit their case Given how many times GM has had to restate their earnings in the last few years, should we take any of their figures as fact?
  • CarPerson CarPerson on Mar 11, 2009

    See the article above this one where the German government was laser-sharp in asking Opel and GM a number of very critical questions. How do we get the German Chancellor to take over for The Chosen One in dealing with General Motors?

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