Early UAW votes on ending the GM strike are a mixed bag

From today’s CNN Online:

Nearly 50,000 General Motors employees are in the process of voting on a tentative labor deal that could end their five-week strike. The early results are mixed.

The Warren Technical center, in Warren, Michigan, which is made up mostly of engineers, voted 85% in favor of the deal. It also passed easily at a metal stamping plant in Saginaw, Michigan, and a transmission plant in Toledo, Ohio.

But at the enormous assembly plant in Spring Hill, Tennessee, which has almost as many UAW members as Warren, Saginaw and Toledo combined, members voted narrowly against the deal by a 51% to 49% margin. That factory builds three different SUVs, including the GMC Acadia, and the Cadillac XT5 and XT6.

Union locals across the country are voting on different days. They will remain on the picket lines while the vote is completed. The nationwide results are expected to be announced Friday evening.

The tentative deal reached last week would pay members an $11,000 signing bonus and raise hourly pay for veteran workers 6% over the life of the contract, to $32.32. And many workers who have been getting by on $275 a week in strike benefits are eager to get back to work earning more than $30 an hour.

The deal also will allow many temporary workers to become permanent employees, which will significantly improve their pay and benefits. And the union got GM to drop its demand that workers pay a much greater percentage of their own health care costs.

But union members are angry at GM’s management, because the deal would lead to the closure of three US plants: an assembly line in Lordstown, Ohio, and transmission plants in Warren, Michigan, and Baltimore.

Although GM has found other jobs for most of the employees who were working the plants when production ended earlier this year, most of the workers had to relocate. Those displaced workers, and some of those who lost their jobs and have not taken new ones, will get a chance to vote on whether to accept this deal.

Read the complete article here.

After 30 days on strike, GM-UAW talks suddenly face a deadline

From today’s Detroit Free Press:

The clock is ticking for General Motors executives to reach a proposed tentative agreement with the UAW, people close to the talks said Tuesday.

The union’s move to summon its National GM Council to Detroit for a meeting Thursday morning was a pressure tactic to prompt GM leaders to reach a deal acceptable to the UAW, said three people familiar with the talks.

Talks continued Tuesday, with GM CEO Mary Barra and President Mark Reuss joining UAW President Gary Jones at the “main table” with the UAW’s lead negotiator in the talks, Terry Dittes.

That was widely seen as moving the talks toward their final phase, but no agreement had been reached Tuesday afternoon. Also present were the bargaining committee members for both sides. A person close to the talks said Barra and Reuss did not stay for discussions through the afternoon.

“Mary’s got two days to come up with a contract, then the National Council meets to decide what to do next,” said a person briefed on the negotiations late Tuesday.

For such heavyweights to show up to the main table indicates a proposed deal is likely close at hand, likely to happen late Wednesday or in the early morning hours Thursday prior to the National Council’s meeting, said one person who had been briefed on the talks.

“If they don’t have a deal, they will give us an update and let us know what the protocol is at that point,” said a UAW local leader who asked to not be named. “Product allocation is an issue GM has come late to the table on.” 

Read the complete article here.

Experts warn GM strike not likely to be resolved anytime soon

From NBC News Online:

On this General Motors and the United Auto Workers agree — the strike that sent 50,000 workers out on the picket lines Monday is not likely to be over anytime soon.

Both sides are talking, but both sides are bracing for a long and costly fight as workers dig in on their fight for better wages, health care benefits and job security, union representatives and auto industry experts said.

“It will go on as long as it’s going to take to achieve our bargaining goals,” Chuck Browning, the UAW’s Region 1A Director, told MSNBC. “The bottom line is this company has been extremely profitable for a long period of time. Those profits have been made off the sweat and the hard work of our members, and our members want a fair agreement.”

Erik Gordon, a business professor at the University of Michigan and an auto industry maven, said the leadership of the UAW needs to take a stand against GM not just for the rank and file — but for its own survival.

UAW President Gary Jones and other top union officials are currently under investigation by federal authorities for allegedly embezzling member dues and blowing thousands of dollars on everything from fancy vacations and golf equipment to $400 bottles of Louis Roederer Cristal Champagne.

“I think the union leadership wanted a strike because they’re under attack, and when you feel like you could be losing your grip on power the age-old tactic is to go to war,” Gordon said.

And because they need to be seen as taking a hard line against GM management, union negotiators won’t seek a swift solution even though rank-and-file workers will start feeling the financial pain almost immediately.

Read the complete article here.