UAW

Auto/Economy
1:27 pm
Fri October 28, 2011

Chrysler CEO says two-class pay system is not viable

Chrysler CEO Sergio Marchionne says he wants to eventually do away with the two-tier pay system.
user socialisbetter Flickr

Chrysler CEO Sergio Marchionne said the two-class pay system currently in place will have to be replaced with a single wage system in the next round of contract talks with the United Auto Workers.

The UAW and Chrysler just approved a 4-year contract with the two-class pay system in place, so the next opportunity to revise the system won't come until the next round of contract negotiations.

More from the Associated Press:

Negotiations for that contract start in 2015.

He says the current system creates two classes of workers. New workers in the bottom tier make about half as much money as longtime UAW members.

Marchionne didn't say how he would come up with one wage. But it's likely he'll try to reduce the pay of top-tier workers. General Motors and Ford could follow and pay could be cut for most of the UAW's 112,000 members.

UAW workers approved a four-year contract with Chrysler on Wednesday. It includes raises for bottom-tier workers.

More on what Marchionne said comes from Changing Gears reporter, Pete Bigelow:

The structure is, “not something that can go on for a long period of time,” he said on a conference call to discuss the company’s second-quarter earnings. Marchionne continued, saying, two-tiers is “not a viable structure on which to build our industrial footprint.”

Changing Gears reporter Kate Davidson provided some insights into the two-class pay system in a piece she produced last year for Changing Gears.

At the time, the starting rate for a "two-tier" worker was $14 an hour. The new contracts have pushed the starting rate for "two-tier" workers above $19 an hour.

Chrysler posts profit
6:09 pm
Thu October 27, 2011

Chrysler makes $212 million profit

Chrysler made a profit in the third quarter of this year.

The news comes a day after Chrysler workers narrowly approved a new four-year contract.

The $212 million profit is small compared to Detroit rival Ford, which made $1.6 billion in the same period.

But it’s the second quarterly profit this year for Chrysler, and a sign that its recovery from the 2009 bankruptcy is gathering some steam.

In fact, Chrysler would have made a profit last quarter too, were it not for one-time costs associated with paying off its federal loans.

Chrysler CEO Sergio Marchionne said the just-ratified contract with the UAW will support the company in its growth plans.

The contract includes a much smaller signing bonus than the one Ford union members will get.

That was likely one of the main reasons the contract was so narrowly approved.

Auto/Economy
6:38 pm
Wed October 26, 2011

UAW declares Chrysler deal ratified, despite split

Update, 6:30 pm:

Speaking with reporters on a late afternoon conference call, UAW President Bob King says its International Executive Board followed the union’s constitution, which gives skilled trades workers a separate right of ratification on skilled trades issues.

But King says the board investigated the reasons skilled trades workers voted the contract down. He says according to Facebook posts and leaflets, the main reasons were general economic ones affecting all workers, such as bonuses - and not issues specific to skilled trades workers.

"You want to protect the rights of the minority, but you can’t let the minority overrule the rights of the majority," King said.

King says with all three contracts with the Detroit automakers now finalized, the union will turn its attention to organizing efforts, and the 2012 elections.

Here's the breakout of the vote, according to the UAW:

Read more
Chrysler UAW voting ends soon
9:28 am
Tue October 25, 2011

Chrysler UAW voting on contract ends soon, could be close

The United Auto Workers is expected to announce the results of voting on a tentative contract with Chrysler by Wednesday.

Chrysler is the last of the Detroit Three to reach a settlement on a new, four-year contract.

Kristin Dziczek is with the Center for Automotive Research.

She said so far, the vote looks very close.  Union members with Chrysler may have been expecting more than they got, she said.

This is coming on the heels of two very strong agreements with General Motors and with Ford that had more cash and fewer contingencies.

Entry-level workers, who receive about 1$14 an hour now, would get a raise of about $4 an hour, phased in over the four years of the contract.

Workers would get an immediate signing bonus of $1,750.00, with the promise of another $1,750.00 dollars if Chrysler meets certain financial goals.

If the contract is rejected, it goes to binding arbitration, because of an agreement the union made with Chrysler during the company’s bankruptcy.

Ford union contract approved, Chrysler next
10:19 am
Thu October 20, 2011

With Ford contract ratified, UAW turns to Chrysler

Staff Chrysler Media

Chrysler union workers vote this week on a tentative new contract. 

Ford workers approved their contract on Wednesday, 63-percent in favor to 37-percent against. 

But the contract was narrowly rejected at the Michigan Assembly plant in Wayne.  Bob King is President of the union. 

"I don’t feel bad or in any way negative towards those workers because they voted against it," says King.  "I think they expressed honest, legitimate concerns.   I have the same concerns.   I don’t like a system where people on the same assembly line are making a different rate of pay."

Read more
Auto/Economy
11:28 am
Wed October 19, 2011

UAW membership approves 4-year contract with Ford

A majority of the 41,000 UAW workers at Ford have ratified a four-year contract with the company.

From the Detroit Free Press

The UAW said 63% of production workers voted in favor of the agreement and 65% of skilled-trades workers voted in favor of the deal.

“I am pleased with the strong support for this agreement from UAW Ford members,” UAW Vice President Jimmy Settles said in a statement today. “I believe UAW Ford workers understood the importance of each and every vote.”

The contract needed to pass by a simple majority.

Ratification of the agreement leaves Chrysler as the only member of the Detroit Three without a contract. Chrysler workers began voting Tuesday on a tentative agreement while General Motors workers ratified a deal on Sept. 28.

Ford Motor Company officials say the new agreement will add jobs and improve the company's competitiveness in the U.S.

From a Ford press release:

Ford is adding 12,000 hourly jobs in its U.S. manufacturing facilities through the four-year term of the contract, including in-sourcing work from Mexico, China and Japan. The company also is investing $16 billion in its U.S. product development and manufacturing operations – including $6.2 billion in plant-specific investments – by 2015. 

“This agreement is proof that, by working together with our UAW partners and local communities, we can significantly create new jobs, invest in our plants and people, and make a very positive impact on the U.S. economy,” said Mark Fields, Ford Motor Company’s president of The Americas. “Our agreement is fair to our employees and it improves our competitiveness in the U.S."

Company officials say new production shifts will be added at Auto Alliance International in Flat Rock, Michigan, and at the Michigan Assembly Plant in Wayne.

Auto/Economy
6:10 pm
Sun October 16, 2011

Ford's largest local union approves contract

Workers at Ford's largest local union have approved a new labor contract with the company.

Ford and the UAW reached a tentative agreement on the contract earlier this month but it must be ratified by Ford's 41,000 UAW workers.

The union says 62 percent of the more than 5,000 workers at Local 600 in Dearborn favored the agreement.

Auto/Economy
4:38 pm
Wed October 12, 2011

UAW and Chrysler reach tentative contract deal

Chrysler and the United Auto Workers have agreed to terms for a four-year contract deal.

Chrysler is the last of Detroit’s three carmakers to reach a tentative agreement with the UAW.

The agreement follows some tense negotiations between the UAW and Chrysler, which is majority-owned by the Italian automaker Fiat.

Chrysler is smaller and more indebted than its fellow U.S. automakers, but the UAW sought a contract with similar terms to those it got from GM and Ford.

Like in the GM and Ford contracts, entry-level Chrysler workers will get a wage hike under this deal. Workers also stand to get more in bonus pay and profit-sharing.

“The overall framework, the overall labor cost agreement [compared to GM and Chrysler] is very, very comparable,” said UAW President Bob King. “We tweaked them, shifted them a little bit in each case, because of the specific needs of the individual companies.”

Also like the GM and Ford contracts, this agreement focuses more on creating and retaining jobs for U.S. workers than on boosting worker pay. Chrysler says it will invest $4.5 billion in U.S. production, and create 2100 U.S. jobs.

King thinks most of his members understand the focus on future investment.

“Our members overwhelmingly supported the goal of bringing more jobs into our plants,” King says.  “And our members understand overall that they can’t be secure unless there’s product and investment long-term in their facility.”

UAW officials hope to get Chrysler workers to ratify the deal within the next two weeks.

GM UAW workers ratified their contract by a roughly 2-to-1 margin. Ford workers are still voting.

Auto/Economy
7:44 am
Wed October 12, 2011

Chrysler & UAW reach tentative deal

Chrysler Group and the United Auto Workers have reached a deal on a new four-year contract that creates 2,100 new jobs.

The union says in a statement Wednesday that Chrysler will invest $4.5 billion in its plants under terms of the deal.

The union gave few other details.

But the agreement is expected to be similar to deals reached earlier with General Motors Co. and Ford Motor Co.

Workers at those companies gave up pay raises for most union members in exchange for profit-sharing payments.

The Chrysler deal covers 26,000 workers.

Auto/Economy
4:59 pm
Mon October 10, 2011

Chrysler and UAW to resume talks Tuesday morning

Contract talks between the United Auto Workers union and Chrysler resume Tuesday morning.  That’s after after negotiators were unable to reach a deal over the weekend. 

The UAW has asked its local presidents to come to Detroit on Wednesday.  That could mean an agreement is imminent. 

Read more
Auto/Economy
11:43 am
Mon October 10, 2011

UAW and Chrysler temporarily halt contract talks

Top officials with the United Auto Workers are briefing local union leaders on contract talks with Chrysler today, after negotiators were unable to come to an agreement over the weekend.

A statement from Chrysler says talks ended this morning so the UAW could meet with its National Council.

Chrysler is the last of the Detroit Three to reach a tentative contract with the UAW.  General Motors workers last week ratified a new four-year contract by a margin of two-to-one.

Ford workers are voting this week on a new contract.

Both the contract at Ford and General Motors provide for a pay increase for the company's entry-level workers.

But Chrysler has many more of the entry-level workers than Ford and GM.  Chrysler CEO Sergio Marchionne has called the pay increase at Ford and GM "overly generous."

Read more
Auto/Economy
11:06 am
Wed October 5, 2011

Ford and the UAW

There’s a fair amount of grumbling in union ranks over the new four-year contract the United Auto Workers reached with Ford.

Some workers are unhappy that they failed to gain back concessions, and that there is nothing new for the retirees, who overwhelmingly outnumber those still working on the line.

Ford workers also thought they deserved more than those at GM and Chrysler, mainly because their automaker was the only one not to declare bankruptcy. They get a little more, but not much.

Read more
Auto/Economy
1:03 pm
Tue October 4, 2011

Ford-UAW deal includes more jobs and U.S. investment

John Fleming, Ford executive vice president of Global Manufacturing and Labor Affairs discusses the UAW agreement with reporters this morning.
screen grab fordahead.com

Update 1:03 p.m.

More details of the UAW-Ford agreement emerged after the UAW's press conference. UAW vice president Jimmy Settles reports winning a "a $6,000 settlement bonus for workers and $7,000 in inflation protection and competitive lump-sum payments over the term of the agreement."

Settles said workers will receive a payment averaging $3,700 this year.

Entry-level wages for new Ford workers are similar to the GM agreement. Their hourly pay was raised to $19.28 over the term of the agreement.

The union details where the investments in jobs and upgraded auto plants will occur in the U.S. saying that "jobs, investment and product guarantees in the tentative agreement include":

  • Flat Rock, Mich., second source for the next generation Fusion and next-generation Mustang.
  • Kansas City, Mo., in-source Transit Commercial Van from Europe.
  • Louisville, Ky., new unnamed vehicle in addition to 2012 Escape.
  • Wayne, Mich., in-source C-Max from Europe in both hybrid and plug-in hybrid models.
  • Avon Lake, Ohio, in-source medium truck and frame assembly from Mexico, along with in-source Motorhome Chassis.

The agreement with Ford was recommenced to the union's larger membership. Now all UAW members will vote for or against ratification this week.

10:27 a.m.

The agreement reached between Ford Motor Company and United Auto Worker representatives will lead to more jobs and investment in the U.S., according to the Detroit News.

Alisa Priddle of the Detroit News reports that many of those jobs will be in Michigan:

The figure includes 7,000 jobs previously announced as well as 5,000 additional jobs - the majority of them new and paying the lower, entry-level wage. Ford officials declined to break down the exact split between new and saved jobs. Some the jobs are from in-sourcing of work that has been previously done in other countries, including Mexico, Japan and China.

The UAW says that "proposed agreement also includes $16 billion of investment to produce new models and upgraded vehicles and components by 2015, of which, $6.3 billion will be invested directly into retooling and upgrading plants."

Ford's union workers are demanding more from Ford compared to the workers at GM and Chrysler.

Part of it has to do with bargaining from a position of power. Ford's union workers could strike should an agreement not be reached. Chrysler and GM workers do not have that option. Both Chrysler and GM took loans from the federal government's Troubled Asset Relief Program (TARP). A condition of those loans stipulated that its workers could not strike.

Brent Snavely reports in USA Today on the other reasons workers at Ford hope to achieve more in their negotiations with the company.

Entering contract talks, the UAW and Ford had an unresolved grievance, signed by 35,000 of the automaker's 40,600 workers, alleging that Ford had violated equity of sacrifice promise by restoring merit pay to white-collar workers but not to hourly workers.

But Ford workers say they have more reasons to expect more than UAW members at GM. Ford has made $14.2 billion in profits since the end of 2008. Ford CEO Alan Mulally and Executive Chairman Bill Ford each made $26.5 million in 2010, an amount that many workers find excessive since production workers have gone eight years without a base wage increase. That high executive pay has become a rallying point for discontents in Ford's factories.

Comparing previous contracts, Snavely reports that "Ford pays $58 an hour for wages and benefits, which is about $2 more per hour than GM and $9 an hour more than Chrysler were paying..."

More details of the tentative 4-year agreement between Ford and the UAW will be revealed at an 11:30 press conference. The contract will not be ratified until the UAW membership votes on it.

Auto/Economy
7:56 am
Tue October 4, 2011

Ford and UAW to announce contract deal

John Fleming, Ford executive vice president, Global Manufacturing and Labor Affairs, and Marty Mulloy, Ford vice president, Labor Affairs, hosting a news conference to discuss the latest developments with the UAW agreement.
screen grab fordahead.com

Ford Motor Company and the United Auto Workers have reached a tentative agreement on a new four-year contract.

Details of the agreement have not been released, but at 9:00 am this morning, Ford executives John Fleming and Marty Mulloy will discuss the deal at the company's Dearborn headquarters. Then at 11:30 am, UAW President Bob King and Vice President Jimmy Settles will present their view of the agreement at a press conference.

The UAW and Ford began contract talks for a new national labor agreement on July 29th and have been in eight consecutive days of intense negotiations on economic and job issues.

General Motors workers ratified a new four-year agreement with the UAW last week and talks at Chrysler are ongoing.

The Ford deal is expected to swap annual pay raises for profit sharing checks and will include commitments from Ford for thousands of new union jobs.

Local union leaders from around the nation will also meet this morning in Detroit to vote on whether they'll recommend the deal to Ford's 41,000 union members.

Auto/Economy
2:14 pm
Thu September 29, 2011

In Lansing, Michigan, little jubilation over UAW-General Motors deal

Members of the Local 602, employed at the Lansing Delta Township Assembly plant above, voted against ratifying a new contract between UAW and General Motors.
Photo courtesy GM

DELTA TOWNSHIP, Mich. – Auto workers at the Lansing Delta Township Assembly plant make some of General Motors’ most popular vehicles.

The GMC Acadia, Chevrolet Traverse and Buick Enclave are all produced inside this 3.4-million square-foot facility on the outskirts of Lansing, which is Michigan’s state capital.

In August, when GM announced an 18 percent sales increase from 2010, GMC led the turnaround with a 40.3 percent increase. Chevrolet had gained 15.8 percent.

So when contract negotiations began last month, the plant’s 3,430 hourly workers expected they’d be sharing in the company’s improved position. But when they saw the proposed deal between the United Auto Workers and GM, many members of UAW Local 602 here felt jilted instead.

They rejected the deal — a rarity for a contract approved by two-thirds of GM workers nationwide.

Read more
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.

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