GM, UAW Reach Tentative Agreement

gm uaw reach tentative agreement

After 31 days on the picket line, UAW-affiliated General Motors workers could soon be back in the business of building vehicles. Wednesday morning, the United Auto Workers and GM announced that their bargaining teams had reached a tentative agreement — one the UAW says includes “major gains” for its members.

All signs earlier this week pointed to a looming deal. On Tuesday, GM CEO Mary Barra and President Mark Reuss sat in on negotiations, while the UAW called its local union leaders to Detroit for a Thursday meeting.

“The elected national negotiators voted to recommend the UAW GM National Council accept the Proposed Tentative Agreement as the agreement represents major gains for UAW workers,” the UAW stated in a release.

GM backed up the message, stating only, “We can confirm the UAW’s statement regarding a proposed tentative agreement. Additional details will be provided at the appropriate time.”

Local union bosses will vote on the tentative agreement tomorrow at the UAW’s national council meeting, potentially securing an end to a five-week strike that cost GM $2 billion in lost revenue, according to Bank of America estimates.

“The number one priority of the national negotiation team has been to secure a strong and fair contract that our members deserve,” said UAW Vice President Terry Dittes in a release. Out of respect for our members, we will refrain from commenting on the details until the UAW GM leaders gather together and receive all details.”

He added, “We are extremely grateful to the thousands of Americans who donated goods and helped our striking workers and their families. As we await the Council’s decision, please know that the outpouring of community and national support will be etched in the memories of all of us at the UAW for years to come.”

Among other things, a deal hinged on maintaining the generous health coverage seen in the last contract, as well as a pathway for temporary workers to secure seniority. The issue of job security focused on model allocation to U.S. plants and retaining assembly sites slated for closure.

Last November, GM announced the impending closure of two assembly plants (Lordstown Assembly and Detroit-Hamtramck Assembly) and parts and transmission plants in Maryland and Michigan. Lordstown closed its doors this spring; Detroit-Hamtramck is slated to go dark in January. The fate of those plants lies in the contract details.

While the details of the collective agreement remain unknown, a source told The Detroit News that the deal includes a $8,000 ratification bonus for UAW members.

As for the strike, tomorrow’s meeting will determine whether the walkout ends after the approval of local union heads, or upon ratification by members.

[Image: UAW]

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  • Oldschool Oldschool on Oct 17, 2019

    I used to work at UPS which was slavery sorting boxes and they had a union, and the union honestly didn’t do jack crap but simply took money out of my paycheck for a year. The problem with union workers (I’ve seen it for myself first hand) is that over time they start to get lazy and slow down. It is very hard to fire someone that is part of a union because of the protected rights in the contract. You will have the absolute worst workers getting promoted and raises when other people there that are truly hard workers wouldn’t get anything because it’s all based off seniority. So there’s no incentive to better yourself or get noticed as being a great worker from management when you know you’re guaranteed a certain percentage pay raise every year like everyone else. With non union workers your value is based off your hard work and or talent which then shows managers that you deserve a pay raise over say someone who doesn’t care about his or her job. I wonder how this new contract with the UAW will affect GM’s ability to stay profitable in the long term. Also will quality and innovation get better or suffer?

    • See 4 previous
    • Psychoboy Psychoboy on Oct 17, 2019

      Unions: Because none of us are more valuable than the worst of us.

  • GoNavy99 GoNavy99 on Oct 17, 2019

    You don't have to visit a UAW picket line to find lazy, entitled workers. There's plenty right here in my building, and I work for a private enterprise who constantly has its eyes on its labor costs. Engaging work creates engaged workers. Mind-numbing work creates workers who are there for the paycheck. Doesn't matter if its making cars, or filling out a spreadsheet while sitting down. You're insane if you think that a person is supposed to sit there whistling like they're in heaven as they screw on the 1,113 bolt of the morning.

    • See 1 previous
    • GoNavy99 GoNavy99 on Oct 17, 2019

      @ToddAtlasF1 This really just defines the lines between a corporation and a small business. I'm with you on the latter - I spent 15 years at various small businesses where every individual effort mattered immensely to the operation of the firm, only to later move to a large corporation where the amount of waste and laziness boggles the mind.

  • Ltcmgm78 I must laugh because this is an expansion of the old question of why car manufacturers don't build less expensive cars. There's no money in it! As long as virtue signalers have the long green to buy the pricier EVs, there won't be any affordable ones until most of the demand for the expensive ones are met. Economics, you know. New technologies always progress this way. The future Chevy Vega on the Ultium platform is a long way off.
  • Daniel J Also, the additional 20K is spread out over a loan, which could end up closer to 24K.
  • Wolfwagen When will GM and Dodge/Ram come out with a BOF 2 door sport utility? Im not one that jumps on the first year new vehicle bandwagon, but for a new Ramcharger, I'd sleep out in front of a dealership for days to be first in line for preordering (or infront of my computer for hours)
  • Wolfwagen Is it me or does the front end look like a smaller silverado?
  • MQHokie Who decided moving all headlight control to the touchscreen was a good idea? I assume this means no manual high beam control anymore, so you're at the mercy of the automatic system that gets fooled by street lights, porch lights, sign reflections etc. Not to mention a good software bug or a light sensor failure might render the lights inoperable. With all the restrictions the NHTSA has placed on USA headlight design over the years, it amazes me that this is even legal.