About 40 days after auto workers gave up work and shut down General Motors` factories and sanding, union members ratified the interim agreement reached by their representatives with the automaker earlier this month. The UAW announced approval of the agreement after Friday`s vote ended. The final agreement is similar to the offer on payment and bonuses, but contains some improvements, said the person briefed on the matter. Irrespective of this, the UAW Mack Truck Council announced late on Thursday that an interim agreement had been reached and that it was suspending a nearly two-week strike. Mack`s workers must return to their workplaces. Mack Trucks has five locations in Pennsylvania, Maryland and Florida. As part of the agreement, the Warren Tech Center will receive a new vehicle program, $200 million in investments and the maintenance of approximately 75 jobs. Lansing Delta and Spring Hill, Tennessee, assembly plants will receive a next generation of mid-sized SUVs worth $1 billion and 5,000 jobs. The agreement also includes ratification bonuses of $11,000 (compared to $8,000 in 2015) for permanent employees. Temporary employees would receive a $US 4,500 ratification bonus, up from 2,000 $US in 2015. The company would pay the bonuses during the second pay period after the agreement was ratified. A cap of $12,000 for recipient companies is also being removed and permanent employees continue to receive US$1,000 for every $1 billion in upstream tax revenue generated by GM in North America. A local UAW leader at a GM plant said the union would face challenges at Ford and Fiat Chrysler Automobiles when they enter into negotiations with those companies.
Plus:Fallout of the GM UAW strike continues with blazer construction stopped in Mexico Under the agreement, temporary full-time workers who have worked for three years or more would be permanently hired from January 6 – a priority request from the UAW and many members. Part-time workers who have worked for at least two uninterrupted years become regular employees as of January 1, 2020. Temporary workers who work for at least one year are also entitled to paid and unpaid leisure time. UAW will negotiate a new interim agreement with Ford, using the GM contract as a model. For now, the work stoppage is underway, although now that the UAW-GM National Council has sent an interim agreement to members, employees of GM suppliers may soon return to work. However, a ratified treaty is not guaranteed. If the agreement is approved by the workers, the union will then enter into negotiations with Ford Motor Co or Fiat Chrysler Automobiles NV (FCA), which cover many of the same issues. UAW had previously agreed to renew fixed-term contracts with the two automakers, while it focused on GM.
UPDATE 10/16/19, 11:30 a.m.: The Associated Press reported that the United Auto Workers and General Motors have reached an interim agreement that has yet to pass by the union committees, first by the union committees and then by all union members. The proposed contract has a four-year term. Production of Chevrolet Silverado and GMC Sierra 2020 pickups at the Silao Assembly plant in Mexico, as well as production of previous-generation pickups at GM`s Oshawa, Ontario, also declined during the strike due to a lack of parts.