19 September, 2011The UAW reached a tentative new agreement with US automaker General Motors on September 16. The agreement covers almost 50,000 GM workers in the USA. Talks continue for UAW's 41,000 members at Ford and 26,000 members at Chrysler.
USA: The current contract between General Motors and the United Auto Workers of America (UAW) expired on September 15. The new agreement with GM now sets the bar also for wages at US auto parts companies and US factories run by non-US automakers, with hundreds of thousands of employees. The contract talks are the first since GM and Chrysler received government aid to avoid bankruptcy in 2009. To get the aid, UAW had to agree not to strike over wages at GM and Chrysler. Also, unresolved issues can be taken to binding arbitration.
"In these uncertain economic times for American workers and faced with the globalization of the economy, the UAW approached these negotiations with new strategies and fought for and achieved some of our major goals for our members, including significant investments and products for our plants," said UAW President Bob King.
"First and foremost, as America struggles with record levels of unemployment, we aimed to protect the jobs of our members. And we have done that. This contract will get our members who have been laid off back to work, will create new jobs in our communities and will bring work back to the United States from other countries," King added.
Exact details of the proposed agreement are being withheld until UAW members have had the opportunity to review it, but the UAW successfully fought back efforts to weaken the retirement plan, and also obtained some significant improvements to health care benefits. In addition, the agreement includes improved profit sharing with far greater transparency than in the past.
"We prove again today that through the collective bargaining process, we can provide decent wages, benefits and employment rights for workers while ensuring quality products and healthy profits for employers. We stand recommitted to our goal of organizing and fighting for all workers in the entire US auto industry," added King.
"We are proud of this tentative agreement and what we have achieved, but as long as unionized workers are being forced to compete with nonunion workers who in most cases receive lower pay and benefits - many in temporary jobs - there will continue to be a downward pressure on the wages and benefits of all autoworkers," King said.
The question of an International Framework Agreement and a World Works Council for the US Auto makers has been kept on the table in the talks with GM and Ford.