UAW prepares to open contract talks with Detroit automakers this summer

Article by Christian A., on June 10, 2011

There’s an impending shift in how the UAW will handle the contract negotiations with General Motors, Ford Motor Co. and Chrysler Group as the union is considering a wider use of profit sharing rather than have fixed wage hikes for members.

The Wall Street Journal interviewed UAW President Bob King last Thursday. King said that the union will study the issue when the formal talks start in late July. The labor agreements are set to expire on Sept. 14.

Traditionally, the UAW has opposed moves to tie large portions of the workers’ salaries to profits since that would mean that they will suffer during economic downturns as they will get lower payouts.

During the talks, King will also be asking for the $7,000 to $30,000 in concessions that workers each gave up since 2005 in order to help the automakers continue to exist. Back then, the union gave up bonuses, raises, and cost-of-living adjustments.

In addition, the UAW accepted a two-tier wage system. This means that new employees receive about $14 an hour, which is half of what’s paid to longtime production workers.

The UAW also agreed to not hold strikes against GM and Chrysler until 2015. King made a speech in northern Michigan last week, asserting that the union wants the automakers succeed and to do that, it will seek a "moderate, pragmatic and inclusive" path.

Topics: uaw, united states

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries