Because GM is a more profitable automaker than FCA US, the UAW reasons that the company should be able to provide more to members. Like in the first deal, the union is expected to negotiate a way to mitigate the two-tier wage system by offering a path to pay parity for workers. The General could drive a very hard bargain, though. According to Reuters, the automaker already carries higher labor costs because it has fewer lower-tier employees at around 20 percent, versus 45 percent for FCA.
The stage looks set for serious negotiations between the two. On one side, GM reportedly wants to protect its profit margins in the new contract. However, UAW members are clearly willing to reject a deal and threaten a strike, if necessary.
Featured / Negotiations / October 22, 2015
The UAW announced today that it will pursue a contract for UAW-GM members in the next round of Big Three bargaining as negotiations continue at Ford.