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UAW and Ford agree on proposed tentative agreement
The GM proposed contract is similar, except that it includes an $8,000 bonus.
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The UAW late Friday released final voting results for the tentative GM pact that would cover 52,600 workers.
Ford executives have complained that the company’s labor costs have climbed above those of its domestic competitors because it isn’t subject to same wage system that enabled the Detroit Three automakers to hire 39,150 workers in the past four years.
The contract approved by Fiat Chrysler workers established a pattern of pay increases for hourly workers, starting at $17 an hour and progressing to almost $30 an hour over eight years.
Local Ford Lima Engine Plant employees had a strike vote in September and voted to have a strike, though local union officials said one wasn’t likely.
Details and highlights of the contract are expected be available after the NFC votes on it, and before it goes to a vote by workers. Notably, GM is also pressured to close negotiations with the UAW soon, as a deadlock between the two parties could lead to costly labor strikes.
Details of the terms of the agreement were not disclosed. Workers at three plants in Michigan, however, have voted it up.
Workers at GM’s large Chevrolet Malibu sedan plant in Kansas City, Kan.,-represented by Ms. Hale-overwhelmingly rejected the deal. According to the UAW’s bylaws, the contract can not pass unless a majority of both production and skilled workers ratify it. The UAW, however, ignored the provision in the 2011 contract.
UAW Local 1714 President Robert Morales said he is optimistic that the new contract will be ratified. Reporting a 16% sales increase in October compared with the same period in 2014, GM said it had enough inventory to last it past the end of the year.
The union was also seeking a richer contract from Ford, which earned $1.9 billion in the third quarter, including a record $2.7 billion pretax profit in North America.
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Williams said lower-tier workers – who make up 20 percent of GM’s hourly workforce – will now be eligible for traditional health care benefits. It’s more lucrative for them than the contract approved by their counterparts at Fiat Chrysler Automobiles (NYSE:FCAU) last month.