In October 2010, the union reached an agreement with the company that would allow GM to rehire laid off workers and pay 40 percent of them tier-two wages, which at that time were $14 an hour.
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“We’ll engage in a constructive way to come up with a contract that meets the needs of the business, the employees, and all of the stakeholders”, he said after GM announced third quarter earnings.
The UAW started discussions again with the Detroit-based company Thursday.
The move is a strategic tactic by the union to keep both sides focused on negotiations but it also suggests a new deal may be close at hand since GM and the union see a strike as a last resort. A tentative agreement was reached less than 20 minutes before the deadline was set to expire.
But odds are against a strike.
One note of substance about the UAW’s strategy covered at Bloomberg News – surely known to others following the industry who are filing bland reports – is that it plans to milk the unemployment insurance system in the event of a protracted strike.
GM issued a statement confirming the new deadline.
The FCA agreement for its 37,000 UAW-represented workers is expected to serve as a template for contract with GM and, eventually, Ford Motor Co. The UAW may win greater profit-sharing and bonuses and more jobs. Schwartz said hourly wages and pensions usually follow the pattern, profit sharing tends to be different.
An area of contention in the Fiat Chrysler talks is an alternative work schedule that is hard on the body and much-hated. GM does not have a similar shift in its plants.
However, the company has had long term goals to cut labor costs. Workers for Subsystems Manufacturing are employed at many GM plants to do work previously done by outside suppliers or traditional employees.
GM spokeswoman Katie McBride said Sunday afternoon that talks were on a fast pace and the company still hoped to get an agreement by midnight.
Contact Alisa Priddle: 313-222-5394 or [email protected].
Just this week, the UAW reached a deal with Fiat Chrysler Automobiles, just hours before it announced it wanted to resume contract negotiations with GM.
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September 13: UAW picks FCA as lead target in contract talks.
