GM, UAW Reach Tentiative Labor Deal
Union Hails Wage Gains, GM Says “Good for Business”
Following final approval of a hard-fought labor agreement between Fiat Chrysler Automobiles (FCA) and the United Auto Workers (UAW), General Motors and the UAW have just announced agreement on a tentative labor deal that will now be presented to the workers for approval, Reuters reports. Details on the tentative agreement have not yet been disclosed to the public.
The expectation is for any deal between the UAW and GM to adhere fairly closely to the template established by the FCA/UAW deal, in which the two-tier wage system was eliminated in favor of an eight-year step-up wage scale allowing former second-tier workers to earn up to the same hourly wage as more senior workers. If GM adopts a similar deal as FCA, it’s expected to have less of an impact, as a larger percentage of GM workers are already tier-one workers.
GM’s more robust financial health will likely embolden the UAW to ask for terms equal to or better than the FCA agreement. On the side of the automakers, both Ford and GM are looking to close the wage gap disparity between themselves and FCA, which currently has the lowest hourly worker cost at $47, including wages and benefits. By comparison, GM’s cost is $55 and Ford’s is $57.