Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Welcome to the party: Health care options dwindle under new UAW-GM contract]]>http://www.autoblog.com/2007/10/05/welcome-to-the-party-health-care-options-dwindle-under-new-uaw/http://www.autoblog.com/2007/10/05/welcome-to-the-party-health-care-options-dwindle-under-new-uaw/http://www.autoblog.com/2007/10/05/welcome-to-the-party-health-care-options-dwindle-under-new-uaw/#commentsFiled under: ,

It's widely known that UAW workers have better than average health and dental coverage. That coverage makes up a sizable chunk of GM's labor costs, which the automaker wants to reduce through its pending contract with the UAW. Though copies of the contract in various states have been leaked, no one has taken a good look yet at what will happen to the UAW worker's health and dental coverage if the contract is approved.

The Detroit Free Press took a crack at investigating the new contract and found some interesting items. While the oft cited VEBA account will take care of retired workers' health care, their benefits will not change unless the VEBA starts losing money. Active workers, however, will see their choices of health and dental plans reduced. We won't get into the nitty gritty, suffice it to say that higher co-pays and a smaller pool of doctors from which to choose is on its way.

It's hard to be sympathetic, however, considering that today most of the U.S. workforce endures health care plans that are half as comprehensive as they were a decade ago. To expect GM not to follow suit with the rest of corporate America and remain competitive is wishful thinking.

[Source: The Detroit Free Press]

Welcome to the party: Health care options dwindle under new UAW-GM contract originally appeared on Autoblog on Fri, 05 Oct 2007 14:21:00 EST. Please see our terms for use of feeds.

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UPDATE: The Detroit News is reporting workers at the Romulus, MI engine plant have also rejected the UAW-GM contract by a narrow margin.


The Detroit Free Press is reporting that workers at GM Powertrain's Massena, New York engine plant are the first to have rejected the proposed four-year labor contract agreed upon by UAW officials and General Motors. The members of UAW Local 465 chose to shoot it down by a margin of 172 to 137. They have good reason, though. According to the contract, the plant in which they work is scheduled to close in 2008. We're actually surprised 137 voted for the contract at all considering the document seals their fate.

UAW workers under GM's employ have until October 10th, another five days, to approve the contract, though only 13,000 out of 73,454 employees have voted so far. The rejection by the engine plant in Massena is not surprising, though we expect the contract will still be approved by a majority of the UAW rank and file. After that, the UAW moves on to negotiations with Ford and Chrysler, both of which are in a weaker position than crosstown rival GM and able to offer the UAW less.

[Source: The Detroit Free Press]

First plant rejects UAW-GM contract originally appeared on Autoblog on Fri, 05 Oct 2007 10:27:00 EST. Please see our terms for use of feeds.

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It turns out the 24-page document we showed you last week was not the full UAW-GM contract the two parties negotiated after an historic 40-hour strike, but rather a highlights booklet to make the nuts and bolts of the deal easier for the union's rank and file to digest. The real contract, called the "white book" by union members, has also now hit the web. We found it hosted at Factoryrat.com, all 82 pages of legalese. Some mainstream outlets found the "white book" too and began sifting through its jargon to determine if anything in the official contract conflicted with what the highlights booklet contained. It turns out that what was initially reported by insiders as firm commitments to allocate the production of particular vehicles at certain plants, thus guaranteeing job security through the four-year life of the contract, are actually worded as "opportunities" instead of allocations. That has some worried their job security isn't as iron clad as they believed it would be last week.

Here's a link to a Detroit Free Press article that analyzes the "white book" in more detail because, well, it's Monday and our ADHD attention spans don't permit for in-depth contract analysis.

[Source: Factoryrat.com]

UAW-GM "white book" contract released on web originally appeared on Autoblog on Mon, 01 Oct 2007 14:03:00 EST. Please see our terms for use of feeds.

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UPDATE: According to Automotive News, the deal also stipulates GM agrees to new-vehicle programs at 16 U.S. plants.

This morning local UAW leaders that represent plants from around the country unanimously voted to approve the contract offered by General Motors that came at the end of a 40-hour strike by union workers this week. Official details of the contract have been revealed, and we now know that GM's contribution to the Voluntary Employee Beneficiary Association (VEBA) will be $29.9 billion, plus another $5.4 billion in what The Detroit News calls "pre-VEBA costs". That's significantly less than the upwards of $50 billion we heard was being offered, but UAW president Ron Gettelfinger insists it should last the union some 80 years.

While the contract was unanimously approved this morning by UAW local leaders, it's the 73,000 union rank and file that still need to vote on the contract. That vote is expected to come by October 10th, and despite a $3,000 signing bonus for those who vote to approve the contract, there are some union members who argue that their leadership has betrayed them. A small but vocal group specifically disagrees with the VEBA and the fact that GM is now off the hook for health care costs. There are many who also dislike the new two-tier wage system that starts off thousands of new hires at a much lower $18/hour rate of between $14 and $16.23/hour. Despite protestations, however, we expect the majority of the UAW's GM workers to fall in line and vote this thing through.

Check out official details of the UAW-GM contract after the jump.

[Source: The Detroit News, Automotive News - sub. req'd]

Continue reading UAW-GM contract details revealed, local leaders vote unanimously to approve

UAW-GM contract details revealed, local leaders vote unanimously to approve originally appeared on Autoblog on Fri, 28 Sep 2007 15:29:00 EST. Please see our terms for use of feeds.

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