UAW Rejects Latest Offer From GM, as Labor Talks Break Down -- 2nd Update
October 06 2019 - 2:17PM
Dow Jones News
By Nora Naughton and Mike Colias
Contract talks between General Motors Co. and the United Auto
Workers labor union stalled Sunday morning after making some
progress heading into the weekend with new-hire pay, job security
and other issues still in contention.
In a Sunday letter to union members, Terry Dittes, the UAW's top
bargainer for GM, said talks with the company had taken "a turn for
the worse" in part because the union says GM reverted back to a
previously rejected proposal with only minor changes.
"The company's response did nothing to advance a whole host of
issues that are important to you and your families!," Mr. Dittes
wrote in the letter. "It did nothing to provide job security during
the term of this agreement."
A GM spokesman said "We continue to negotiate in good faith with
very good proposals that benefit employees today and builds a
stronger future for all of us. We are committed to continuing
discussions around the clock to reach a resolution."
Mr. Dittes said the union presented GM with a comprehensive
proposal that addressed wages, job security, pensions,
profit-sharing and other topics Saturday evening, only to receive
the company's counter offer Sunday morning.
The deadlock is the latest sign the now 21-day strike at GM is
likely to continue into a fourth week, extending a nationwide
walkout that is already the longest at the company since 1970. The
work stoppage has halted factory output at more than 30 U.S.
plants, stifled production for auto-parts suppliers, resulted in
temporary layoffs for thousands of non-UAW factory workers and
stopped all of GM's pickup truck production in North America.
As of Saturday, the biggest remaining issues on the table were
shortening the eight-year time period it takes for a new worker at
GM to reach full pay of about $30 an hour and providing
enhancements to workers' pensions and 401(k) contributions,
according to people close to the talks.
The disparity in pay between veteran workers and newer hires has
long upset the union, which has fought for equal pay among members
working in auto factories. New hires start out at about $17 an hour
and get yearly raises until they reach full pay.
The need to secure jobs during the next contract period, which
Mr. Dittes called out specifically in his letter, has been among
the UAW's top demands heading into talks and since calling the
strike at GM.
During contract talks, union negotiators typically press the
company to make commitments on how much money they'll invest in
U.S. factories and what new models they'll build in these plants as
a way to guarantee existing jobs, as well as create new ones.
The company's decision in November to indefinitely idle four
UAW-represented factories -- including assembly plants in Detroit
and Lordstown, Ohio -- early on drove a wedge between the company
and union with UAW leaders criticizing GM for building vehicles in
Mexico and what it described as prioritizing profits at the expense
of American workers.
GM, in an offer made public shortly after the UAW called the
strike three weeks ago, said it had solutions for Detroit and
Lordstown, and offered wage increases and plant investments that
would create thousands of new jobs.
The Detroit car maker, the U.S.'s largest by sales, had also
previously offered to build a battery plant near its assembly
facility in Ohio, which would create a few hundred jobs, people
close to the talks have said. Additionally, the company still plans
to sell the now-shuttered Lordstown, Ohio, plant to an electric
truck startup. Workers in the area say they haven't been satisfied
by this offer.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
October 06, 2019 14:02 ET (18:02 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
General Motors (NYSE:GM)
Historical Stock Chart
From Aug 2024 to Sep 2024
General Motors (NYSE:GM)
Historical Stock Chart
From Sep 2023 to Sep 2024