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GM, UAW reach tentative contract
Mon September 19, 2011
GM, UAW to announce details of tentative contract on Tuesday
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.
Kristin Dziczek is a labor analyst with the Center for Automotive Research in Ann Arbor.
"And that’s a big contrast to what we did in 2007," notes Dziczek, "which was downsizing, job cuts and things that could be seen as nothing but concessions." In the 2007 agreement, the UAW agreed to let Detroit automakers hire new workers at an entry-level wage, which is about half what current workers were making.
The UAW continues to hammer out an agreement with Chrysler and Ford.
Last week, Chrysler CEO Sergio Marchionne chastised UAW President Bob King for not meeting with him to finalize a contract after Marchionne flew to Detroit specifically for that purpose.
Both Chrysler and Ford have extended the contract talks past last week's Wednesday night deadline.
CAR's Kristin Dziczek says the talks so far are following the usual timing. The first automaker to reach a tentative contract with the union typically does so a few days after the deadline.
She says a couple weeks past the deadline, the second automaker often reaches a deal with the union.
And the third automaker generally complete negotiations a month after the deadline.