UAW and General Motors reach agreement; avert strike

26 Oct 2015 | Author: | No comments yet »

Big profits could cost GM, Ford in UAW talks.

General Motors Co. and the United Auto Workers reached a tentative four-year agreement that is expected to provide raises across the board, averting a potential strike.

“Your UAW-GM Bargaining Committee has secured significant gains and job security protections in a proposed Tentative Agreement with GM,” the union announced. Union officials didn’t disclose details of the agreement, which was announced minutes before midnight Sunday and covers 52,700 union-represented members at GM.

In that accord, the union won raises for all members at Fiat Chrysler and a path to bring wages of so-called Tier 2 employees equal to those of senior workers. The agreement not only rewards UAW-GM members for their accomplishments, but it protects them with significant job security commitments.” There is also an expectation that items such as signing and performance bonuses, lump sum payments and profit sharing will be richer because GM is a larger, more profitable company.

UAW officials, in a statement, said the deal presents “significant” wage gains, job commitments and provides a path for entry-level workers to grow into the more senior hourly wage. That pact will cost Fiat Chrysler close to $2 billion over four years, people familiar with the matter have said. “GM is in far stronger economic shape than Chrysler, and the union wanted to see more in what they got from them,” said Harley Shaiken, a labor professor at the University of California at Berkeley, before tonight’s agreement. “These contracts provide an entrance ramp to the middle class.

While those kind of results cheer shareholders, they could be even better for union negotiators who will point to them in trying to hammer out new four-year pacts with Ford and GM. That’s a contrast to the contracts we’ve seen in recent years that provided exit ramps.” The UAW for the first time in a decade is reaching agreements that add substantially to the Detroit-area automakers’ costs. On Sunday, the UAW had set a midnight deadline after which it could call a strike, but the focus was on whether a tentative agreement could be reached. WASHINGTON — Republican presidential candidate Christ Christie on Sunday said President Barack Obama spurs “lawlessness” through his support of the Black Lives Matter movement. “There is lawlessness in this country.

A work stoppage would have threatened GM’s momentum in the U.S., which was evident in the $3.1 billion operating profit it posted last week, mostly on sales of trucks and sport-utility vehicles to Americans emboldened by low gasoline prices. Memories linger of negotiations more than a decade ago when generous contracts during the last sales boom — fueled by big sales of profitable SUVs and pickups — were followed by a sales bust. The UAW last struck GM in 2007 for two days before reaching agreement on a four-year contract that included a lower wage for new hires — the Tier 2 workers — to help the automaker through an economic downturn. The UAW made a similar strike threat last week as it negotiated with Fiat Chrysler but the two sides reached an agreement just before the deadline and there was no walkout. Ford squeezed by and GM and Chrysler reorganized in bankruptcy. “They are in a stronger bargaining position to negotiate a better deal with GM and Ford, but I would not expect it to be phenomenally better,” says Marick Masters, head of the Douglas A.

NEW YORK — New York authorities have arrested a man accused of strangling his mother and keeping her body in a motel room for seven weeks before driving to South Carolina and dumping her remains in an isolated area, police said on Sunday. Closing that gap has been a big goal for the union. “They are three very different situations” when it comes to each of the automakers, says Kristin Dziczek of the Center for Automotive Research. The lower wage was instituted in previous contracts as Detroit automakers complained that their labor costs weren’t competitive with the non-union U.S. factories of Asian and European rivals. GM, which has 52,700 workers represented by the UAW, paid $9,000 a worker last spring, $2,400 more than it was required to pay under the 2011 contract.

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