Gm Union Agreement
The U.S. Attorney`s Office`s investigation into alleged corruption within the UAW has been expanded with the arrest of a senior union official. In a criminal complaint released the next day, a source said Jones was one of the unin named officials who were removed. Despite the investments, GM successfully negotiated the closure of three U.S. production sites. The biggest blow to the union was the closure of the Lordstown, Ohio plant. He recently built the Chevrolet Cruze and the automaker called it one of two facilities that were not “assigned” in the U.S. last November. Two other facilities, the Baltimore and Warren Transmission plants, will also be closed. But the deal, which is expected to increase labor costs by $100 million a year, will accentuate G.M.`s disadvantage compared to some competitors. Before the strike, work — including wages, benefits and other expenses — G.M. cost about $63 an hour, according to the Center for Automotive Research.
The cost to foreign automakers operating non-unionized plants in the South is about 50 $US an hour. Many of their plants pay less than $20 an hour. For G.M employees, the contract will result in wage increases of 3 per cent in the second and fourth years and 4 per cent in lump sum payments in the first and third years, similar to what the union received in 2015. The interim contract, developed by the United Automobile Workers and General Motors, will not please all union members, but it will certainly receive strong support at the Detroit-Hamtramck assembly plant. The union could also be at Ford Motor Co. or fiat Chrysler Automobiles NV to reach an agreement if it believes it could make better progress there. According to the union, discussions in subcommittees between the union and these companies have progressed and most of them have reached a point where they are waiting for GM to give the model. However, if GM`s work stoppage continues, such a move could be devastating for the Detroit automaker and its striking employees, experts said. The vote on the treaty will take place next week and a result is expected on Friday.
Ratification requires a simple majority, but it must include a majority of skilled workers – electricians and other technical specialists who are waiting for machines. If this is not the case, the union must negotiate with the company in order to dispel its concerns, as was the case in 2015, when G.M. negotiated a contract for the last time. General Motors Co and the United Auto Workers union have reached a tentative agreement on a new labor agreement to end a nationwide strike of about 48,000 hours for a month, the union said Wednesday. About 40 days after the departure of United Automobile Workers, the strike at General Motors plants and the halt to sanding work, union members ratified the preliminary agreement reached by their representatives with the automaker earlier this month. The UAW announced approval of the deal after Friday`s vote ended. There were also rewards for temporary agency workers, about 7 percent of G.M.`s union workforce, who will have a path to stable employment after three years. About 900 of them will be fully employed in January, the union said, and another 2,000 until 2021. G.M. for its part, the union obtained approval for the permanent closure of three factories already closed, including a plant in Lordstown, Ohio. This will help G.M guard against overcapacity at a time when car sales are slowing and put G.M. in a more stable position in the event of an economic recession.
The union entered the talks in hopes of getting G.M. to reactivate the Lordstown plant. GM plans to invest $7.7 billion $US representing 9,000 jobs created and maintained, according to the pages of the deal obtained by The Detroit News. The 2015 contract contained a commitment of $US 8.3 billion. After 40 days, workers in the UAW GM unions return to work, with members voting to ratify the interim agreement, which went into effect last Thursday. . . .