Ratification of the new GM-UAW labor contract has been delayed due to a majority (59.5 percent) rejection by skilled trades workers. Depending on who we talk to, skilled trades workers have various reasons to oppose the agreement, but two issues in particular seem to be contributing to their opposition:
- The skilled trades employees are not eligible for a retirement incentive of $60,000. The incentive will be offered to as many as 4,000 production workers.
- The contract calls for changes in the range of jobs skilled tradespeople perform. Over the last several years, the number or skilled trades categories has been reduced by GM and other automakers. The trend is likely to continue well into the future.
There are between three and four production workers for every skilled-trades job for a total of 52,600 workers across the United States that the new contract will impact.
And even though 59.5 percent of skilled trades workers voted against the new contract, an overall 55.4 percent of hourly workers at GM’s U.S. facilities voted in support of the new deal.
UAW leadership has the power to overrule the rejection by skilled trades workers if an investigation finds that they voted against the agreement for reasons other than issues specific to them. The scenario has taken place before, with the most recent being in 2011 with the Chrysler Group, now Fiat Chrysler Automobiles US.
Comments
Is there still product left for General Motors Oshawa
Should be the next-gen Regal and Equinox, at the least.
The real issue contributing to the opposition of the contract is the combing of skilled trade classifications. Yes over the last several years, the number of classifications has been reduced by GM and other automakers. But this trend need’s to stop now, not continue well into the future. Ford, FCA did not continue reduction’s in their contract’s. The combing GM was trying to implement would put those skilled trade employee’s affected at greater risk for saftey incident’s. Because some accountant think’s reducing hourly employee’s is the best way to save a dollar does not alway’s make it right. Maybe combing salary position’s will save some money,since GM spends more on their management salary then their hourly labor it would make sense to look for cut’s in management. But they did that once also,combing and outsourcing the IT staff. It takes them awhile but eventually they figured it out that was a bad decision costing them million’s more. Recently GM hired 10,000 new IT staff and opened up four new information tech support centers. Cutting heads and eliminating skilled classifications may save a few dollar’s now, but eventually when the machine’s are not running and you no longer have the skilled person to keep it running it will cost more by hiring outside contractor’s to come in and fix it. It take’s them awhile but eventually they realize they made another bad decision. Maybe the skilled trade’s voting down this terrible decision just saved GM from making another one.