UAW approves GM contract

GM’s four-year contract was approved for ratification by 55 percent of UAW members voting but skilled trades workers turned it down, delaying ratification.

The union now has new four-year contracts in place with all three Detroit automakers.

However, union leaders had warned that they might not receive any better deal from the automaker if workers were to reject this agreement and returned to bargaining.

UAW production members voted 51.3% in favor; skilled trades were 52.4% in favor and nearly 91.5% of salaried workers voted yes. In an interview with WFPL News on Friday, UAW Local 862 President Todd Dunn said a variety of issues contributed to the workers’ vote. “The General Motors Co. was notified on November 20 that the agreement has been ratified”, wrote UAW Vice President Cindy Estrada in a letter to union leadership late Friday.

On Wednesday, the union launched a last-ditch effort to save the pact as UAW-Ford Vice President Jimmy Settles and Local 600 President Bernie Ricke called a news conference in Dearborn to emphasize the contract’s benefits. But final approval was then held up because 60% of the skilled trades workers, such as electricians and welders, voted against it.

The UAW says the agreement now addresses those workers’ concerns about job classifications and seniority rights.

UAW President Dennis Williams stated: “Our UAW members have ratified the national agreement after a long process and much debate. The majority has secured a strong future that will provide job security and economic stability for themselves and their families”.

GM said the agreement is good for workers and for its business. The contract raises wages for all workers, provides an $8,500 signing bonus and promises $9 billion in investments at Ford’s US plants over four years. Even though they were outnumbered by production workers, who approved it by 58% to 42%, the union’s constitution required meetings to learn the strongest objections were that led to skilled trades rejecting the contract.

It took two tries to get a Fiat-Chrysler deal approved by the rank and file earlier this fall.

The deal also would, over eight years, close a pay gap between veteran workers and those hired since 2007, who were paid at a significantly lower pay scale.

The contract is likely to cost GM more money.

Kristin Dziczek, director of the labor and industry group at the Center for Automotive Research, said the overall cost of the two FCA deals was virtually identical, but that the second agreement gave workers less job security in exchange for letting Tier 2 workers eventually earn more money.

The Ford contract includes $10,000 in bonuses upon ratification. Ford Motor Co. hourly members wrap up voting Friday on their tentative agreement, which could be defeated based on results thus far that indicate “yes” votes are trailing “no” votes.