US: GM – UAW contract most likely better than FCA deal image

The union and the largest US automaker, also the third biggest in the world, reached a tentative agreement on the upcoming four year contract for workers late Sunday night, cancelling the threat of a strike minutes ahead of the deadline.

Local union leaders who take part in the UAW National GM Council will get to see the detailed agreement in Detroit on Wednesday and then vote if it would go towards the members’ ratification process. The details have so far not been revealed, other than scarce comments it would include “significant wage gains and job security commitments,” but it would traditionally follow in the footsteps of the first one – ratified by FCA rank and file union members last week in terms of base payments. The proposed FCA-UAW contract also includes the elimination of the much despised two-tier system, with all workers able to reach a top wage of $29 an hour in eight years or less.

Naturally, the expectations for the GM contract are higher because it’s a much bigger, more profitable company – and are forecasted to hit every aspect, from signing and performance bonuses, to lump sum payments and profit sharing checks. General Motors meanwhile has aimed to keep personnel costs competitive – and they already pay as much as $10 per hour more than other carmakers in the US – while also vowing to protect its newly achieved ten percent profit margin. While UAW executive and the company itself declared themselves satisfied with the new deal, the union was making strike preparations ahead of the Sunday night deadline – the first time since 2009 they were allowed to use the tactics.