UAW

Auto/Economy
5:26 pm
Wed September 28, 2011

At auto plants, a reversal of fortune

Auto workers and brothers - Justin (left) and Derick Jewell. In September of 2010, Justin Jewell made $16 an hour. Derick Jewell, his older brother, made $28 an hour.
Kate Davidson Changing Gears

*Editors note - This story by Kate Davidson of Changing Gears was first broadcast last year (September 22, 2010). Now that GM and the UAW have agreed to a new contract that will allow GM to hire more "two-tier" workers (newly hired workers paid a lower wage than traditional workers), we thought we'd bring her story on "two-tier" workers back. As Micki Maynard of Changing Gears points out, only about 4 percent of GM's workforce is "two-tier" now - under the new contract, that number could go up to 25 percent.

The American Dream is that each generation will do better than the last.  But many families of auto workers no longer have that expectation.  As Detroit car makers sped towards financial ruin, their union agreed to a dual wage structure, plus deep cuts in benefits.

Now, new hires earn about half what traditional workers make.  This reversal of fortune has altered their lives.

Read more
Auto/Economy
3:07 pm
Wed September 28, 2011

UAW membership approves 4-year deal with GM

A view from GM's Headquarters. The UAW membership and GM have agreed to a four-year contract. The team from Changing Gears share their analysis.
user santoshkrishnan Flickr

Update - 3:07 p.m.

More thoughts on the newly ratified UAW-GM contract from Micky Maynard with Changing Gears:

General Motors gave some new details today on its just-ratified agreement with the United Auto Workers union. Among them: up to 25 percent of its workforce could be “two-tiers” — new hires at lower rates than veteran workers.

Changing Gears reporter Kate Davidson profiled two-tier workers last year. Right now, they’re only 4 percent of GM’s workforce, but the auto company clearly has plans for more of them.

There’s a caveat, though. In order for GM to hire more workers, auto sales have to pick up, company executives said during a conference call with Wall Street analysts. And it isn’t promising to hire the same number of workers as it sees sales go up: it will study its staffing needs and hire accordingly. 

The new contract runs through 2015 and caps the number of “two-tiers” at 25 percent at the end of the contract. It calls for the new hires to get a raise to nearly $20 an hour by 2015 (veteran workers are paid about $28 an hour now).

Other GM highlights:

  • The number of people working in its U.S. factories has dropped sharply. GM had 110,000 hourly production workers in 2005, according to its presentation. In 2008, the year before it filed for bankruptcy production, GM had 78,000 U.S. workers. Now, GM has just 49,000 hourly workers, or less than half what it had six years ago.
  • For the first time in 58 years, GM does not expect its pension expense to rise under the new contract. One reason is that newly hired workers will not be covered by GM’s traditional pension plan; they will receive a 401(k) retirement program instead.
  • GM says it still has 700 workers laid off from their jobs. They have first dibs on jobs at GM plants, including the workers it plans to hire when it reopens its factory in Spring Hill, Tenn. Once those workers have been offered the chance to come back, then GM will hire new workers, including temporaries.

Read more about the GM contract in The New York Times.

1:05 p.m.

More from Pete Bigelow of Changing Gears:

General Motors became the first domestic automaker to reach an official agreement on a new contract with members of the United Auto Workers union Wednesday afternoon.

The UAW said in a written release that 65 percent of production workers and 63 percent of skilled trade workers voted in favor of the agreement, which had been tentatively agreed upon Sept 16. A four-year contract provides a wage increase for entry-level workers, and goes into effect immediately.

The agreement would create 6,400 jobs in the United States, the release said.

“When it seems like everyone in America is getting cuts in benefits and paying higher co-pays and deductibles, we were able to maintain and improve on our current benefits,” said UAW vice president Joe Ashton.

GM CEO Dan Akerson is expected to hold a conference call with Wall Street analysts at 2 p.m.

12:37 p.m.

The deal is complete. UAW members officially ratified their contract with General Motors.

From the Detroit Free Press:

The UAW said today that its members have ratified a new four-year labor agreement with GM that gives workers a $5,000 signing bonus and is expected to preserve or add 6,400 U.S. jobs.

It is the first contract for 48,500 GM hourly workers since the automaker’s 2009 bankruptcy and restructuring.

The union said the vote was 65% in favor of the agreement among production workers, and 63% in favor among skilled-trades workers.

News Roundup
8:50 am
Tue September 27, 2011

In this morning's news...

user brother o'mara Flickr

UAW talks with Ford heat up

Officials from the United Auto Workers are pushing for more from Ford Motor Company. Michigan Radio's Sarah Cwiek reports the union leaders "expect to get better terms" from Ford, since the company is in a better position compared to GM and Chrysler. From Cwiek's report:

If the two sides can’t come to an agreement, there is the possibility of a strike. Since Ford didn’t go through bankruptcy, it doesn’t have the no-strike clause in its current contract that the other companies enjoy.

Like its fellow U.S. automakers, Ford is reluctant to increase its fixed costs by raising wages. But the union is expected to make a major push for bonuses, more generous profit-sharing formulas and retaining jobs in the U.S.

Costs of Enbridge oil spill going up

Officials from Enbridge Energy have revised their estimates for cleaning up the oil spilled into Talmadge Creek and the Kalamazoo River. It's original cost was $585 million. Now, they say it will cost $700 million. Michigan Radio's Steve Carmody reports the new estimate was part of paperwork Enbridge Energy filed with the U.S. Securities and Exchange Commission. An Enbridge spokesman says the increase is due to "additional work around submerged oil and just some more active remediation of the impacted environment."

New state policy: ties for guys

In contrast to their chief executive's style, officials from the Department of Licensing and Regulatory Affairs have issued a dress code for men that calls for ties. Governor Rick Snyder prefers a sport coat and dress shirt with no tie. The Lansing State Journal reports the new policy is aimed at thousands of state employees:

The new policy went into effect Sept. 12 for about 3,700 employees at the state Department of Licensing and Regulatory Affairs. It's part of a move to implement a consistent dress code among the several state bureaus and offices that merged this year to create the agency.

"Some of the old bureaus had dress codes, others didn't," said Mike Zimmer, the agency's chief deputy director. "We thought it should be consistent throughout the department."

Auto/Economy
6:51 pm
Mon September 26, 2011

UAW, Ford talks heat up

Ongoing contract talks between the UAW and Ford are heating up.

The union has indicated it expects more for workers from the only Detroit automaker to avoid bankruptcy.

Since Ford is the best-positioned of the three US carmakers, union leaders expect to get better terms from that company than from GM and Chrysler.

Read more
Auto
7:30 am
Wed September 21, 2011

The latest on UAW contract negotiations

Union leaders at General Motors' factories across the U.S. are endorsing a tentative contract with the automaker. 

In an unprecedented press conference yesterday, UAW President Bob King discussed details of the 4-year-contract. The rank-and-file will vote in the coming days. General Motors is the first automaker to reach a deal with the UAW. And,  these negotiations are the first since the federal government stepped in to help GM and Chrysler through bankruptcy in 2009.

We caught up with Tracy Samilton, Michigan Radio's auto reporter, to talk about the tentative contract and what it means for GM, the UAW, and the state's economy.

Auto/Economy
2:31 pm
Tue September 20, 2011

Details of UAW's new contract with GM emerge

General Motors Chairman and CEO Dan Akerson (left) shakes hands with United Auto Workers President Bob King at the beginning of the UAW/GM talks last August.
gmmedia.com

Update 2:31 pm:

This story was clarified at 2:00 pm to say that the $5,000 bonus was for ratification of the contract.

Pay raises for entry-level workers, five-thousand dollar bonuses for ratification, and better profit sharing. Those are among the highlights of the four-year contract local UAW leaders will recommend to General Motors’ 48,500 hourly workers.

UAW President Bob King says the union bargained a “great framework” for all three Detroit automakers.

    "They’re in different states of financial health, different states of debt. We’re hoping that this country bounces back and the European situation gets resolved – they all could be impacted by that. And we think we’ve got an agreement that helps us get through those periods of time, because we didn’t add many fixed costs to this agreement."    

The tentative contract promises to add or save 6,400 workers. Nine hundred of those are at Michigan plants.

It also provides for a $5,000 dollar ratification bonus, and raises for entry-level workers. UAW President Bob King says those workers will also see generous health care provisions – including free emergency room and urgent care visits.

"What worker being hired at any employer today starts out with the kind of health care plan that workers hiring into General Motors will have? What workers have unlimited doctor visits, $25 co-pay? Nobody."

The contract also calls for $10,000 dollar bonuses for eligible employees who retire in the next two years. Skilled tradesmen who retire between November First and the end of March would qualify for additional $65,000 bonuses.

Ratification is expected at the end of next week.

Michigan Radio's Sarah Hulett is at the United Auto Worker's press conference in Detroit today.

She's reporting on some details of the UAW's new contract with General Motors:

  • Entry level wages will be bumped up to $19.28/hr over the life of the contract plus a $5,000 ratification bonus.
  • Unlimited doctor appointments with $25 co-pay.
  • $10,000 bonus for eligible employees who retire within the next two years.
  • Additional $65,000 bonus for skilled trades who retire between November 1, 2011 and March 31, 2012.
  • Jobs will be added in Michigan at facilities in Warren, Saginaw and Romulus.

UAW President Bob King says the next target for negotiations has not yet been determined.

From the Associated Press:

Union leaders from General Motors factories around the country have endorsed a new four-year contract with the company.

They are recommending that GM's 48,500 factory workers approve the deal in votes during the next week.

The agreement reached Friday includes a $5,000 signing bonus and improved profit-sharing instead of hourly pay raises for most of the workers. About 2,400 entry-level workers will get raises. They now make $14 to $16 per hour, about half the pay of a longtime UAW worker.

Profit-sharing will be a minimum of $3,500 next year.

The union now will focus on negotiations with Chrysler, and Ford will be next.

Since Chrysler isn't making as much money as GM, workers there probably won't see as good of a deal.

 

Auto/Economy
10:57 am
Tue September 20, 2011

Auto Talks: Far From Over

There’s a great deal of celebration going on over the fact that General Motors and the United Auto Workers union have reached tentative agreement on a new, four-year contract.

In the old days, what this would have meant was speedy ratification, followed by a similar settlement with Chrysler within perhaps two weeks, and then Ford maybe a month later.

That was the era of pretty much one-size-fits all pattern bargaining agreements. But that was before the near-death and the resurrection of Chrysler and GM, and it’s now a different world.

I spent some time yesterday with one of the best industry analysts around -- Kristin Dziczek, who heads the labor and industry group at CAR, the non-profit Center for Automotive Research based in Ann Arbor. Dziczek knows the management spokesmen and the economists, and has friends and relatives who are in the UAW. She eats, breathes, and sleeps this stuff.

Read more
GM, UAW reach tentative contract
12:21 pm
Mon September 19, 2011

GM, UAW to announce details of tentative contract on Tuesday

GM CEO Dan Akerson and UAW President Bob King kicking off this year's talks with a ceremonial handshake.
General Motors

Contract talks between the United Auto Workers and Chrysler and Ford continue this week, after GM became the first to settle on the terms of a tentative agreement with the union, late Friday.

Officials with the union and the automaker will release details of the contract on Tuesday at an 11:00 a.m. press conference.

The Detroit News and Detroit Free Press report that the GM contract probably includes a signing bonus for workers if they agree to the deal, and a pay increase for entry-level workers.

Plus, GM is expected to agree to add more jobs in the U.S.

Read more
Auto/Economy
8:47 am
Sat September 17, 2011

GM, UAW agree to new contract

General Motors headquarters in Detroit
Andrea_44 Flickr

General Motors Co. and the United Auto Workers, sobered by the government bailout and bankruptcy at the automaker just two years ago, reached a tentative agreement on a new four-year contract without the public acrimony or strikes that have plagued the talks in the past.

Read more
News Roundup
9:05 am
Thu September 15, 2011

In this morning's news...

user brother o'mara Flickr

UAW and automakers fail to meet deadline

Last night was the deadline for Detroit automakers and the United Auto Workers to reach agreements on new contracts. The UAW and Ford Motor Company officials agreed to extend their talks, but the Associated Press reports talks with GM and Chrysler broke off just after midnight last night.

Chrysler CEO Sergio Marchionne sent a letter to UAW President Bob King saying they had let down Chrysler workers - "you and I failed them today," he wrote - From the Associated Press:

Up until the deadline, the negotiations that began over the summer appeared to be proceeding without the acrimony that plagued them in the past. But just before the 11:59 p.m. EDT Wednesday deadline, the CEO of Chrysler fired off a letter to UAW President Bob King saying an agreement likely wouldn't be reached because King didn't come to the table Wednesday night to finish the deal.

"I know we are the smallest of the three automakers here in Detroit, but that does not make us less relevant," Chrysler CEO Sergio Marchionne said in the letter, which was obtained by The Associated Press.

The AP reports that despite the talk extension, negotiations appear to be going more smoothly with General Motors.

Governor Snyder says Michigan should act on health care exchanges

In his healthcare message yesterday, Governor Rick Snyder said Michigan's health care system is a broken one.

He rolled out a list of ideas to improve the situation which included a request to set up a statewide healthcare exchange. As Lindsey Smith reported, "the new federal health care law mandates states create their own exchange, join a regional one or wait until the federal exchange is in place."

Rick Pluta reported the governor is likely to face opposition on this idea from Republicans in the state legislature:

Many Republicans oppose the law and resist enacting any of the federal mandates before the U.S. Supreme Court rules on them.

The governor says that will put Michigan behind other states if all or part of the law is upheld.

The resistance doesn't just come from legislators. Michigan's Attorney General, Bill Schuette, is actively fighting against the federal health care law in courts.

Michigan servicemen to deploy to Afghanistan

From the Associated Press:

About 90 members of the Michigan National Guard are preparing for a year of service in Afghanistan.

An event was planned for Thursday in Grand Ledge for the Lansing-based soldiers. They'll do about 14 weeks of training before going to Afghanistan to conduct intelligence work.

The soldiers are from B Company of the Brigade Special Troops Battalion with the 37th Infantry Brigade Combat Team.

Contract talks may be extended
12:10 am
Tue September 13, 2011

UAW contract talks to be extended at Ford Motor Company

The deadline for Detroit automakers and the United Auto Workers’ union is fast approaching. 

But contract talks could be extended past the deadline of this Wednesday – especially at Ford. 

Ford is the only company that faces the possibility of a strike this time, because of agreements made during GM and Chrysler’s bankruptcies.

UAW President Bob King says a strike is not the goal.

But some union dissidents think a strike could happen.

Gary Walkowicz  is a bargaining committeeman at UAW Local 600 in Dearborn.

Read more
Politics
9:25 am
Mon September 12, 2011

In this morning's news...

user brother o'mara Flickr

Negotiations between UAW and automakers might go down to the wire

Contracts between the UAW and Detroit automakers expire this week. The sides have been negotiating for the past month and will likely continue to negotiate through the middle of this week. The Detroit Free Press reported that "GM's agreement... is likely to add thousands of jobs at U.S. plants, offer buyouts for skilled trades workers and enhance the profit-sharing formula.":

Chrysler has been in lockstep with talks at GM and out-of-state union leaders were told that they might need to travel to Detroit soon to review a tentative deal.

Talks were continuing at Chrysler over the weekend. CEO Sergio Marchionne said in Canada that he would be involved in the talks, even though he was traveling from Calgary, Alberta, to Detroit and then to Frankfurt, Germany, over the course of the weekend.

Meanwhile, talks lag at Ford, where economic issues have barely begun being discussed.

State to decide whether to increase testing standards this week

The state Board of Education might decide to raise school testing standards at a meeting tomorrow, according to the Detroit News. If the scores are raised, fewer schools in Michigan will be found to be proficient in key subjects:

Education officials say the changes are necessary because existing standards reward students for average work and have disguised dismal ability levels. For instance, just 10 percent of third-graders are not proficient in reading, according to last year's Michigan Education Assessment Program (MEAP) tests. State Superintendent Mike Flanagan said the newer scores will show that more than 60 percent are not proficient.

F-16s scrambled to follow a passenger plane on 9/11

Two passengers behaving suspiciously raised concerns of terrorism on a Frontier flight from Denver to Detroit yesterday. More from WXYZ.com:

People on the plane tell Action News the two men in question spent long periods of time in the plane’s lavatories. It's not clear how the woman was involved.

“They were going back and forth through the aisle,” passenger David Mungia said, describing the behavior of the two men who were taken away by police.

“One of the guys was in the bathroom for at least ten minutes,” Mungi said.

Authorities are not saying what was going on inside the lavatories but ABC News is reporting the unidentified passengers were making out.

 

Update 11:47 a.m.

The Detroit Free Press reports that reports of amorous activity on the flight are false:

Three passengers detained at Detroit Metro Airport Sunday after the crew reported suspicious activity were actually just using the rest room, according to an FBI spokeswoman in Detroit.

FBI Detroit spokeswoman Sandra Berchtold said reports about sexual encounters taking place in the rest room are false, describing them as "stories spinning out of control."

Auto/Economy
3:03 pm
Tue August 30, 2011

Preserving auto workers' stories

Ora Calhoun started in the painting booth when she hired in at the Fisher Body plant in 1978, according to her oral history. Her story has been cataloged by MSU.
MSU

The United Auto Workers and Michigan State University collected oral histories from about 125 workers, managers, and others connected to the Fisher Body plant in Lansing.

The plant closed in 2005 after more than 70 years of production. Fisher Body in Lansing was one of the longest operating auto factories in the U.S., according to a Lansing Car Assembly Facebook page.

An MSU labor relations professor, John Beck, headed up the project.

Beck said the oral history recordings "gave a lot of people a voice that they would not have had otherwise."

From an MSU press release:

The plant’s closing in 2005 threatened to effectively bury the workers’ experiences. But through the MSU/UAW partnership, these stories – which run the gamut from first and last days on the job, to tales of racism and sexism, to statements of pride and teamwork – are now part of a digital catalogue at MSU’s G. Robert Vincent Voice Library. The catalogue is called the Lansing Auto Town Gallery.

Read more
Auto/Economy
4:40 pm
Mon August 29, 2011

UAW President Bob King says country is "not broke"

UAW President spoke at the Detroit Economic Club in Detroit today. King addressed the nation's economy and current contract talks with Detroit automakers.

Michigan Radio's Sarah Cwiek was there.

From Cwiek's report:

UAW President Bob King says the erosion of the American middle class threatens democracy.

King addressed a largely business-friendly crowd at the Detroit Economic Club. He says the current tax system squeezes workers the most and heightens economic inequality.

King says reforming that system and investing in education should be the country’s top priorities rather than cutting spending.

"We’re not broke. So many people seem to say…commentators and others…that we are broke. But we’re not broke. We just need to figure out how to have a fairer system and use our resources better."

The Detroit Free Press reports that King criticized the Tea Party for pushing big spending cuts. King says the economy is suffering from a lack of jobs, not over-spending.

From the Free Press:

“I don’t think the lion's share of the problem is out of control government spending,” King said today at a Detroit Economic Club luncheon in Detroit. “I think our basic problem is ... that we have an extremely unfair tax system in America right now.”

In the 1950s, King said, corporate taxes accounted for 27% of the U.S. budget. By 2010, that percentage decreased to less than 10%.

The UAW is in the middle of contract negotiations with Detroit automakers.

Sarah Cwiek reported that King "held up what he calls the 'problem-solving culture' that now exists between the UAW and automakers as a model for the larger economy.

Contract talks are expected to wrap up in September, but King told the crowd that "nobody knows when we will complete."

The Detroit Free Press reports that "King’s cautious comments come two weeks after UAW Vice President Jimmy Settles said negotiations with Ford are ahead of schedule and reports last week that an early deal with General Motors is possible."

AUTO
8:02 am
Wed August 17, 2011

UAW: Ford talks ahead of schedule, strike vote set

Pobrecito33 Flickr

The United Auto Workers' lead negotiator with Ford Motor Co. says talks with the Dearborn-based automaker are ahead of schedule and says the union is asking its locals to hold routine strike authorization votes by Sept. 2.

Jimmy Settles tells the Detroit Free Press the votes are "nothing unusual" and are a normal part of every contract cycle with Ford.

Settles and UAW President Bob King announced the decision to hold a strike authorization vote Tuesday at a UAW meeting in Chicago. The union started negotiations with Ford late last month to replace a four-year contract that expires Sept. 14.

Contracts also are up at General Motors Co. and Chrysler, of which Fiat is the majority owner.

UAW negotiations
12:02 am
Fri August 5, 2011

GM may ask for (and get) pay-for-performance clause in UAW contract

GM CEO Dan Akerson and UAW President Bob King shake hands at opening of 2011 contract talks
General Motors

A top GM executive said Thursday that the automaker wants to peg United Auto workers' pay to their job performance. Workers who turn out quality vehicles would benefit financially.

"We want to pay for the performance," GM North American President Mark Reuss told reporters at an industry conference.   “All of those things that I get measured on, I want everybody else measured on, too.”

That would be a big change at GM, where the current UAW contract expires Sept. 14.

Read more
Auto
6:39 am
Thu August 4, 2011

UAW President: Relationship with Detroit automakers has improved

Pobrecito33 Flickr

United Auto Workers President Bob King says the relationship between the union and Detroit car companies has dramatically improved.  That could help the two sides reach an agreement more quickly in ongoing contract talks.  And King hopes it will help him sell the value of his union to foreign auto companies in the U.S.

The UAW is a third the size if was in 1979 mostly due to the downsizing of the Detroit Three.  Future hiring by Detroit car companies will likely be modest.  So the UAW wants to unionize foreign auto companies in the U.S. 

Union President Bob King says most of the companies have agreed to meet with his group.  He says the union needs to overcome strong anti-union sentiment, and convince the companies that the new UAW wants to help them be profitable.

“Probably the biggest question in their mind is, is this for real, is this a passing fancy with the UAW or is this for real?”

Prolonged and contentious contract talks could throw a monkey wrench in the unions’ plans to try to unionize a foreign automaker.  But King and Detroit automakers say they’re negotiating in a spirit of cooperation.

Michigan History
5:48 pm
Wed July 27, 2011

A look back: UAW, Detroit auto workers and labor relations

UAW History
Screenshot from UAW website www.uaw.org

Once again Michigan Radio’s political analyst Jack Lessenberry unleashes his knowledge of Michigan history. This time we get a historical perspective about negotiations between the United Auto Workers and Detroit automakers.

Contract talks have already started between the UAW and General Motors, Chrysler and Ford. But these talks are a little different this time around.

Read more
Politics
6:09 pm
Tue July 26, 2011

State opens contract negotiations with employees

Governor Rick Snyder’s administration and state employee unions have begun a new round of contract negotiations.

The Snyder administration has set a big savings target -- $265 million - or an average of about $6,000 per state worker.

Jan Winter is the governor’s lead negotiator. She says saving $265 million in employee costs will be tough.

“Go the table, work as hard as you can. A lot of things can happen and we’re counting on working out good deals here.”

Winter says one idea is to ask state employees to pay more for their benefits.

“One of the things that we have looked at, clearly, moving to something like an 80/20 split on a health plan would mean well over $100 million in gross savings. We have a lot of ideas, and we’re hopeful the unions have lots of ideas, too.”

Cindy Estrada is the lead negotiator for UAW Local Six Thousand, the biggest state employee union.

She says workers are also looking to fix the state’s budget troubles.

“We want to create a Michigan, a state that in 10 years to come is more efficient, has better quality for the citizens that receive those services, and I think we can do that – if workers and management get together and we look for new solutions and we be really creative and stick to the commitment that we’re going to make structural changes, we can get there, definitely.

But Estrada says the savings should not come out of state employees’ benefits or paychecks since they’ve given up nearly $4 billion in concessions over the past decade.

The unions say state government could find big savings if it reduced the number of managers and outside contracts.

Commentary
10:49 am
Tue July 26, 2011

The UAW and the Changing Auto Industry

Most of us understand that the auto industry isn’t what it used to be. Especially, what we think of as the domestic auto industry. For one thing, it is much smaller, both in terms of market share and in number of people employed. Some time ago, the national media stopped using the term “the big three.“

Now, they mostly call them the “Detroit Three.” Technically, it would be more accurate to say, “the Detroit Two, and the Detroit-based subsidiary of an Italian firm.”  And one of the two, aka General Motors, sells more Buicks in China nowadays than in America.

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