UAW negotiation with GM

10/16/2019

The United Auto Workers is probably to reach a labor deal with General Motors Corp., as a critical step in ending the monthlong strike that has brought a lot of GM factories in the U.S. to a standstill.

The agreement covers more thn 46,000 UAW-represented workers at GM factories and facilities throughout the U.S.

The strike will continue. The UAW officials are set to meet in Detroit on Thursday and will vote on both ending the work stoppage and whether to send the tentative agreement as the decision to end strike will rest with a council of union-hall leaders from GM plants across the country.

The labor deal must be approved by a simple majority.

If workers ratify the deal, union negotiators will then talks to Ford Motor Co. and Fiat Chrysler Automobiles NV.

This round of talks was far more contentious than in years past and the two sides pointed fingers at each other at times.

The strike at GM is because of the clash between two institutions vying for a place in a fast-changing industry. The nationwide strike has caused a shortage at dealer shopts and suppliers and led to huge temporary layoffs. Analysts estimate the strike has eroded GM/s bottom line by roughly $1.5 Billion and is likely to caused a worse results.

GM has initiated a restructuring last year, as a latest effort to prove to Wall Street of its ability not to collapse into bankruptcy.

UAW is losing membership and under pressure to show strength because of the multiyear federal corruption investigation.

The resulting agreement could be pivotal for the two sides and whether all three companies will maintain the labor costs in good as the U.S. car market is weakening expectingly.

GM and Ford's labor costs have been the highest and cut into profitability while Fiat Chrysler's are lower.

Typically after a tentative agreement is reached, UAW leaders move to end the strike. But they also have the option to extend it until the labor pact is ratified for weeks.

No guarantee workers will approve the agreement and it is possible that they will have to return to the negotiation if the first proposal is voted down. The strike is the longest ever since but it is because the workers are very likely to vote a downturn as leadership is new and a Justice Department investigation.

Sticking points in talks include the use of temporary workers and new hires timetable. UAW went into these negotiations looking for a larger share of the company's profits and to guarantee their worker's place. The future plans to build battery-powered cars are of concern by Union leaders because fewer workers and parts are taken to assemble a battery-powered car.