Gm Strike Day 15 Talks Continue With No Resolution

In a letter to members Sunday, a UAW leader said a strike could have been avoided.

Terry Dittes, vice president of the union's General Motors Department, said GM waited until the last minute to make a substantive proposal before the contract expired at 11:59 p.m. Saturday.

"We are disappointed that the company waited until just two hours before the contract expired to make what we regard as its first serious offer," Dittes wrote. "Had we received this proposal earlier in the process, it may have been possible to reach a tentative agreement and avoid a strike."

A spokesman for GM declined to comment on any specifics around bargaining.

Read more: 'Pray for us,' UAW hourly worker urges on Day 1 of the GM strike

He referred to GM's statement Sunday: "We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways, and it is disappointing that the UAW leadership has chosen to strike at midnight tonight. We have negotiated in good faith and with a sense of urgency. Our goal remains to build a strong future for our employees and our business."

A spokesman for the UAW said negotiators for both sides will resume bargaining today starting at 10 a.m. Sources said the two sides did not talk Sunday.

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At midnight Sunday, some 46,000 UAW workers across the nation went on strike at all of GM's plants after union leaders voted earlier in the day to strike. Dittes' letter told members the remaining issues are:

• Wage increases
• Wage progression for new hires
• Health care and prescription drug benefits
• Skilled trades issues
• Job security
• Profit sharing
• "The treatment of temporary workers."

In the letter, Dittes said, "We are willing to meet as frequently, and for as long as it takes, to reach an agreement that treats our members fairly."

The issues

In its statement to the media, GM offered an outline of its offer to the UAW:

• More than $7 billion in investments and more than 5,400 Jobs.
• Solutions for assembly plants in Michigan and Ohio scheduled to be idled.
• Introduction of all-new electric trucks.
• Opportunity to become the first union-represented battery cell manufacturing site in the U.S.
• "Best-in-Class" wages and benefits:
• Wage or lump sum increases in all four years
• Improved profit sharing formula
• Ratification payment of $8,000
• Retain nationally leading health care benefits
• New coverage for autism therapy care, chiropractic care and allergy testing

While it appears to be detailed, it left out a lot of detail. Key issues not mentioned in GM's public description of its offer:

• Creating a path for temporary workers to become permanent.
• Eradicating the two-tier wage system by shortening the time it takes for a new hire to reach the same pay as someone hired before 2007.
• Specifics on health-care costs. Crain's Detroit Business reported Monday that GM's initial contract offer called for UAW workers to pay 15% of their health care costs. The national average is 28%. But the UAW rejected it and the offer dropped down to the 3-4% the workers currently pay, sources say.

"There's just so much unknown about the auto industry right now. They're facing much higher costs of health care, and that's one of the contentious points in this negotiation, but also the trade impacts are costing them money, they don't know what the new terms of trade will be in North America because USMCA has not yet passed, we're waiting to see if there's going to be new tariffs on cars and parts … we don't yet know the fuel economy rules for 2021," said Kristin Dziczek with Ann Arbor's Center for Automotive Research said Monday morning on NPR. "This negotiation is looking for certainty for the next four years for these workers."

The strike does not include Ford Motor Co. and Fiat Chrysler Automobiles, whose UAW contracts were extended while the union tries to negotiate a deal with GM that would be template for talks with the other two companies.

But at midnight Saturday, UAW-represented janitors who work for contractor Aramark went out on strike at five GM facilities over their contract dispute.

More:'Pray for us,' UAW hourly worker urges on Day 1 of the GM strike

More:UAW calls a nationwide strike against General Motors

Local union presidents who attended the UAW's National Council meeting Sunday in Detroit, which voted unanimously to go on strike, said Dittes and the bargaining committee did not offer them details of GM's offer or outline specific sticking points.

Leaders told the 175 local leaders that the two sides were far apart on reaching an agreement with GM having met "only 2%" of the UAW's demands.

Plant production

In GM's proposal, it offered more than $7 billion in new investments in the United States that would create some 5,400 jobs over the four-year life of a new contract, the company said. It also said it had "solutions for unallocated assembly plants in Michigan and Ohio."

That's a reference to GM's announcement in November 2018 that it would indefinitely idle four U.S. plants. It "unallocated" product at Detroit-Hamtramck and Lordstown assembly plants and  transmission plants in Warren and Baltimore. Of the four, only Detroit-Hamtramck continues to operate.

More:Detroit-Hamtramck workers want plant to get more product, temps to be permanent

Sources familiar with the talks said the proposed solution for Lordstown, in Ohio, is to make part of the sprawling factory a battery cell manufacturing site. GM is also in talks to sell the plant to a group backed by electric-truck maker Workhorse. Sources say that offer is still in play.

"I read the statement that General Motors put out. As far as possibly doing something with batteries in Lordstown, our goal remains the same: That they allocate a new vehicle for the plant to build," said Tim O'Hara, president of Local 1112 in Lordstown. "That remains our goal."

GM had built the Chevrolet Cruze subcompact car in Lordstown until earlier this year. GM said it was focusing on SUVs and pickups because consumers preferences have moved away from small cars as gasoline prices remain low.

O'Hara said the UAW bargaining team knows the specifics of the proposals and counterproposals but has not shared it with him. He has a lot of questions about GM's proposed solution for Lordstown.

"For our people to get their pensions, they have to remain GM employees, so it's unclear if GM's plans happen at Lordstown, would people be working for General Motors?" said O'Hara. "Or Workhorse? Or Lordstown Motors? There are too many what ifs for us to be excited about it. Our hope is for GM to allocate other products."

As for Detroit-Hamtramck, sources say it would likely build GM's future electric truck or possibly more electric vehicles. But it is also unclear what scale that would provide the plant and how many jobs, other than it is part of the 5,400 jobs GM referenced in its media statement.

The Warren and Baltimore transmission plants remain without proposed products at the moment, a source said.

Monday morning, Michigan Gov. Gretchen Whitmer handed out donuts to GM UAW workers at GM's Lansing Grand River plant and later tweeted her support.

She wrote: "Always proud to stand with UAW members fighting for good jobs and fair wages. I'm hopeful the UAW and GM can negotiate and ratify a contract quickly so Michigan's autoworkers can get back on the job as soon as possible, as this is so important to our economy."

Contact Jamie L. LaReau at 313-222-2149 or jlareau@freepress.com. Follow her on Twitter @ jlareauan . Read more on General Motors and sign up for our autos newsletter.

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Source: https://www.freep.com/story/money/cars/general-motors/2019/09/16/gm-strike-uaw-contract-why/2336298001/

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