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Latest: Tense UAW And GM Discussions Continue Into Tuesday

Contract negotiations between the United Auto Workers and General Motors continued into the night Monday and through to Tuesday as representatives from both parties attempt to hash out a deal and put a stop to the ongoing strike.

Barra and UAW boss Gary Jones

According to USA Today, discussions between the UAW and GM are extremely tense, with breaks having to be called at certain points during the discussions as tempers flared. It is believed the two are still quite far from reaching a deal, with the UAW seeking concessions with regard to healthcare, new product allocation, job security and pensions for temp workers.

“We have many unresolved issues,” Terry Dittes, vice president of the UAW-GM arm, said Monday. “It’s not just a couple of things. How long will this take? I can’t say.”

Dittes also said GM could have avoided a strike entirely, but only brought forth a contract proposal two hours before the midnight deadline last Saturday, leaving the UAW little time to negotiate the proposal.
Labor experts believe this is actually a good sign, however, as Dittes appeared open to using the first proposal as a basis for the finalized contract.

USA Today’s report indicates the strike will likely last two to four weeks. Creditors estimate the strike will cost GM about $50 million per day. While the automaker has a strong 77-day stockpile of inventory at its U.S. dealer lots and on storage lots, dwindling inventory may have a negative effect on GM’s competitive position in the marketplace.

Nearly 50,000 UAW members are currently on strike against GM.

In an unusual turn of events, GM released some details about its UAW proposal Sunday, saying it planned to add 5,400 labor jobs in the United States in the next four years to help build battery cells for electric vehicles and a new electric pickup truck. The automaker said the deal also entailed a ratification payment of $8,000, wage and lump-sum increases for all four years of the contract and an improved wage sharing formula.

The company did not address key issues often tabled by the UAW, however, such as improving employee healthcare benefits and providing a “clear path,” to a pension for temporary workers. Healthcare and pensions are believed to be an important part of the negotiations for the UAW. GM, meanwhile, is looking to cut back on its $1 billion-per-year healthcare payments and keep temp workers cheap.

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Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. Increase benefit contribution premiums from 3% to 15% like is standard, if not still better, than elsewhere

    Lift the cost of living wage freeze if it isn’t already with some sort of percentage based retroactive compensation for the years it was frozen built into their salary moving forward

    Continue with cost of living wage increases

    Hold profit sharing where it is. This is a flimsy thing that is only good when times are good. If profits are down through some slow years then the union will cry for higher wages to compensate when those two are separate entities of compensation, if GM goes in the red one year does profit sharing go reverse direction???

    Then the UAW needs to remember that they represent a workforce that already gets paid very well for their roll and responsibility, they have good benefits where many others don’t, and have a pension where many many others don’t.

    The fact that this strike will have an impact on state economy, very like national economy, and depending on duration a global impact is asinine given the fact that the workers already have it pretty damn good.

    Reply
  2. Just FYI. Gm did away with pensions years ago. The cost of living freeze is still on, all the talk about gm employees make $63 a hour just isn’t true.

    Reply
    1. They don’t make $63/hr, on average they cost $63 an hour. Hourly wage would be more like $30/hr + overtime

      Reply
      1. Dodo is wages + benefits and its $63. Phr vs $50. For transplants… the $13. Is not sustainable…

        Reply
  3. Financial experts say each day of the strike is costing General Motors about $100 Million, meaning they could burn through their annual profits if the strike runs through the end of the year; but it all depends on how tough UAW are because the longer the strike continues, the less ability that General Motors has to promise anything.. take the strike to January and the company may file for bankruptcy protection and it means UAW members lose everything while General Motors could restructure itself being possibly a Mexican company with just a handful of American facilities.

    Reply
    1. GM will become a Chinese company, just like Volvo, MG, and several other defunct European automakers. They are thriving in China. FCA has already become a European company. Ford and Tesla are the only True American car companies out there.

      Reply
  4. GM has $8b in cash so they’re prepared to break the UAW and its time to do so… if it goes to January only the employees will be hurt. It’s time for the UAW to go the way of the buggy whip!

    Reply
  5. I don’t understand how no one has commented about the fact that GM is continuously deciding to build the Silverado/Sierra and Blazer in Mexico? There are more underlying things the UAW is striking about, not just a benefits package.

    Have to wonder, do current American & Canadian non UAW members wonder if their jobs are going to be replaced by cheap labor in Mexico?

    Are we still trying to be the American brand?

    Reply

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