The UAW union announced late Sunday night its team of negotiators and the executives at General Motors, the largest US automaker, inked a tentative agreement for a new four-year labor contract.
The deal was reached ahead of a threatened strike and the proposal would first pass through a council of several hundred UAW leaders from GM’s US production facilities during a meeting planned for Wednesday, expecting approval. Afterwards the contract would go through the ratification vote process of the 52,700 workers at GM listed as UAW members. Last week a second tentative agreement delivered by the union with Fiat Chrysler Automobiles, the third biggest US carmaker was overwhelmingly ratified by the workers that soundly rejected the first version.
“We believe that this agreement will present stable long-term significant wage gains and job security commitments to UAW members now and in the future,” commented UAW President Dennis Williams. “We look forward to presenting the details of these gains to local union leaders and the membership.”
GM also confirmed on its behalf the agreement had been reached with the UAW, with Cathy Clegg, head of North American GM manufacturing and labor, confirming the company had the flexibility “to respond to the needs of the marketplace.” The details of the contract have not been released yet, but the pattern delivered by the ratified FCA agreement could also include at GM the gradual elimination of the much hated two-tier wage system. That system had new hires paid considerably less than veterans, while the latter last received a wage hike more than a decade ago.