Reports had said that the UAW's strike would not be a lasting one, and they were right. News comes in this morning that the UAW and General Motors have reached a tentative agreement this morning, allowing the 73,000 workers who had walked out to go back to work. Workers could be back on the job as early as the start of the second shift this afternoon.
Difficult issues such as retiree health care costs, tiered wages and job guarantees have been agreed upon in principle. The union will take over managing the health care benefits with GM putting in an as-yet-undetermined amount of money. UAW president Ron Gettelfinger says the fund should be solvent for at least eighty years. On the wage side, new non-manufacturing employees will come in at a lower scale than line workers. Expect Ford and Chrysler to work out deals with similar details in the not-too-distant future, as those companies are still working under terms of the old contract.
UPDATE: GM press release added after the jump.
[Source: CNN, Freep]
PRESS RELEASE:
GM and UAW Reach Tentative Agreement On New National Labor Contract
Company To Strengthen U.S. Manufacturing Presence With Significant Future Investments
Parties Also Agree To Create Independent Retiree Health Care Trust
DETROIT, Mich. - General Motors and the UAW have reached a tentative agreement on a new national labor contract, covering approximately 74,000 represented employees. The agreement is subject to UAW member ratification.
The tentative agreement includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts, and satisfactory review of accounting treatment with the Securities and Exchange Commission.
"There's no question this was one of the most complex and difficult bargaining sessions in the history of the GM/UAW relationship," said Rick Wagoner, GM Chairman and CEO. "I'd like to thank UAW President Ron Gettelfinger, UAW Vice President Cal Rapson and their bargaining team for their leadership and hard work in negotiating the agreement."
The national agreement paves the way for GM to significantly improve its manufacturing competitiveness, providing the basis for maintaining and strengthening its core manufacturing base in the United States.
"This agreement helps us close the fundamental competitive gaps that exist in our business," Wagoner said. "The projected competitive improvements in this agreement will allow us to maintain a strong manufacturing presence in the United States along with significant future investments."
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
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Reader Comments (Page 1 of 3)
georgejetson @ Sep 26th 2007 6:23AM
The devil will be in the details on this one. Watch GM's stock price as the details leak out over the course of the day.
compy386 @ Sep 26th 2007 7:10AM
To me this entire strike was a sham. It was put on the UAW to get it's workers' support. I haven't seen the details yet, but for once I'm proud of the UAW. Scare your workers a little with a strike and make it look like you fought hard to keep benefits you know are no longer realistic. At least the union can see the writing on the wall.
Cliff @ Sep 26th 2007 7:13AM
I'm glad it's over. Kudos to GM for sticking to thier guns on this one.
the friendly grizzly @ Sep 26th 2007 7:15AM
I wonder if the UAW will manage the health care funding as well as their brothers in the Teamsters have done with the pension funds?
importjap @ Sep 26th 2007 7:36AM
Well that sure was quick
sk @ Sep 26th 2007 7:45AM
The only thing that UAW achieved is that GM is sending even more of the U.S. car production overseas.
DarkKnight67 @ Sep 26th 2007 8:05AM
Good, now maybe we can get on with the business of making the company profitable once more.
JB @ Sep 26th 2007 8:11AM
Great. I won't have to watch video clips of starving UAW workers who are worried they won't be able to make their boat/cottage/seadoo/RV payments.
I'll have to put all my canned goods away that I was going to drop off. Canned yams anyone?
Eric M @ Sep 26th 2007 8:22AM
I'll take those. I make about 1/3 of what they do, so obviously I'm floating way below the poverty line.
Guenther @ Sep 26th 2007 9:47AM
I'll be looking to pick up some of those toys....
One editorial from the Freep cracked me up, where the nice lady was talking about how strapped they were with 3 kids, one in college, a mortgage and 2 car payments... why do you have 2 car payments, lady????
Dave @ Sep 26th 2007 8:15AM
Awesome... now get back to work and be grateful you still have a job with king kong bennys... And while you're at it... if you see a UAW brother slacking... kick him in the butt and make sure he/she knows how lucky they are to have a great gig...
Maybe Detroit will keep automotive here for another decade.
testa di cazzo @ Sep 26th 2007 8:15AM
i sure hope GM didn't concede much of anything... those UAW scum don't deserve anything...
Dausman @ Sep 26th 2007 8:19AM
Is this all too little too late for GM and its workers?
Will GM still be GM...just located elsewhere? GM is finally producing products worthy of standing side by side with its' competition....or so it seems.....
I hope the aggreements made as a result of this strike will allow them to to be even more competitive and bring even better products to the market.....union members must realize that the same products can be assembled just as well elsewhere with equal or better quality.
Pokey @ Sep 26th 2007 8:33AM
I myself am a member of the USW (United Steel Workers), but I have alot of family that members and friends that are UAW, and they are far from being scum!
These people (most of them), are hard working, and deserve to have good pay, and benefits.
I'd rather see someone get paid well for doing actual labor, rather than someone who just sits in a cubicle, and stares at a computer screen or files papers all day.
Congrats to GM, and the UAW!!!!
Du @ Sep 26th 2007 8:41AM
Unfortunatly, paperwork not labot makes the world go round.
Just look at the Governments of the world.
So I'd thank all those people pushing paperwork, they allow you to have the things you have.
epilonious @ Sep 26th 2007 8:55AM
I think your friends and family members need to take a weekend trip to Mexico and China to see what crappy job conditions are actually like.
Or maybe you should recommend they go try and unionize filers and computer programmers... there's obviously some workplace abuses that could make the unions some money to "abolish."
In the meantime, if your family members and friends keep skulking around other plants from other companies in other states that usually have /better/ wages... I'm gonna feel free to call them greedy, opportunistic scum.
Pokey @ Sep 26th 2007 10:25AM
"greedy, opportunistic scum"? Do you know any of them personally? Oh well, that's your opinion, and you're certainly entitled to it.
All that most of these people want is to support their families, and raise their children in a good home. If being greedy and opportunistic means looking out for your family, then call ME greedy and opportunistic!
I'll never understand this hatred for union people. I remember about 4 years ago, we (USW) were having an informational picket outside of our plant. Most of the motorists that passed by honked in support, but, more than a few (mostly suits driving foreign luxury sedans) flipped us off and yelled profanities as they drove by. All we were wanting was to keep what we already had ($35,000 a year and decent benefits), not wanting MORE than what we had. The company that I work for is very healthy, and getting healthier every year, so, what is so wrong with us wanting to keep the standard of living that we have grown accustomed to?
As for the UAW, so what if their greedy and opportunistic? Aren't all corperations greedy and opportunistic? Why is it okay for the big corperations to be greedy?
epilonious @ Sep 26th 2007 10:46AM
That is the entire problem. A union should never, ever be a corporation.
It should be an alliance of workers, teaming up to get the company to cooperate, and preparing to weather the unhappy times of strikes and such.
That's what happened in the US in the early half of the last century, and it was quite necessary to make sure that workers weren't being downright abused. As a result, there is a smattering of labor laws to prevent such abuses from ever happening again.
Now what is the UAW? A corporation, and apparently interested more in making money than protecting workers... and since they are based entirely on dues from workers in /other companies/.. it's pretty much a form of parasitism.
As I've said before, there are places that desperately need unions to empower workforces to end human rights abuses and make sure that hard workers who commit to a company are protected financially and politically: They're called Mexico and China to name a few.
I would much rather that you look out for your family by being a hard worker and an honest soul. It seems now your employment is based on being on good graces with another corporation who may or may not be open to your complaints in a desperate search for profit.
Wasn't that what the unions were supposed to prevent?
seoultrain @ Sep 26th 2007 10:57AM
Too much confusion on the difference between UAW and UAW-represented workers. The UAW is what's causing the problems with their greed, not the workers. I'm sure many of the workers' views mirror ours here at AB. The problem is that there isn't much they can do, as the UAW has grown too powerful. To say that all the GM workers are greedy bastards is a gross generalization.
epilonious @ Sep 26th 2007 11:09AM
SeoulTrain: Good point.
Really, UAW-represented-workers are in a tough spot because they /have/ to join the unions. It also creates interest conflicts because it means that jackass who never works hard but always is friendly with the union reps will not be able to get fired and make everyone else who does their job look bad. I ultimately think that the abolition of some of the unions that have become incorporated and greedy (in my eyes) would benefit the company and the workers.
UAW, the corporation, and the people who work for the echelons of that company seem to be dedicated to finding new workers at different plants to ensnare with the promise of dubious benefits... And that shouldn't be the purpose of a union.