UAW-GM Leadership Council Unanimously Recommends Ratification of New Pact

11/08/96

The Associated Press reported that UAW leaders from 123 GM locals voted unanimously to pass the newly negotiated GM-UAW tentative agreement on to the union's GM workers for ratification. The GM-UAW Leadership council met with UAW President Stephen Yokich for four hours on Wednesday, listened to his explanation of the new contract, and voted unanimously to recommend that the UAW's GM membership ratify the deal and make it a legally binding contract. The ratification vote has been set to be completed Nov. 17.

The new agreement reportedly follows the general pattern set by contract negotiations with Chrysler and Ford, but deviates from the pattern in several key areas.

The UAW gained a major role in GM's decisions to outsource work, which was one of the most contentious issues between the two sides during contract negotiations. The issue is foregrounded in the GM contract more than with either Ford or Chrysler because GM makes more parts in-house than either of the other two carmakers. GM has been preparing to sell or close parts plants operated by its Delphi subsidiary, and the UAW has a big interest in protecting its Delphi workers.

The UAW says that the new contract with GM guarantees to maintain at least 95 percent of its UAW-covered jobs, just like the contracts it negotiated with Ford and Chrysler in September.

UAW vice president Richard Shoemaker said the GM contract does not exclude any plants from the base work force number on which the 95 percent calculation will be made. Shoemaker also disputed reports that the UAW agreed to stand aside as GM moves forward with its plans to sell Delphi plants in Flint and Livonia, Michigan: "We have not agreed they can sell those plants. I don't have any plans on agreeing (that) they can sell the plants."

Yokich disputed reports that the new contract allows GM to trim 30,000 jobs through attrition and plant closures over the next three years. He said the union has no estimate of what job loss, if any, is possible.

The GM contract also provides an incentive for the automaker to enter or acquire new parts businesses: every two workers hired for such businesses would count as three toward the total work force number. The new contract allows GM to pay a lower wage at new parts businesses, as long as it does not undercut the wages of UAW-represented suppliers in the same parts segment or region. The new Ford and Chrysler contracts contain similar provisions.

The contract requires GM to provide the UAW with extensive information about its plans to sell parts businesses or to buy parts from outside suppliers. This will give union locals a chance to make a proposal to perform the work competitively. If the best proposal still comes from the outside supplier, the local will be given at least a month to meet the terms of that proposal.

In terms of wage provisions, the new GM contract is like the Ford and Chrysler contracts. It provides a $2,000 bonus in the first year, followed by 3 percent wage increases in the second and third years. The typical GM worker will gain nearly $14,000 over the life of the contract.

Paul Dever -- The Auto Channel