GM Becomes First of Big Three to Reach New Agreement with UAW (ContributorNetwork)

As predicted, General Motors became the first of the Big Three to reach a new contract agreement with the UAW on Friday. The agreement, described as "tentative" because it has yet to be officially ratified by UAW members, was reached late that evening, according to reports that emerged from Detroit on Saturday.

General Motors had begun preliminary negotiations with the UAW earlier this year, but as the expiration date of the current contract loomed nearer, discussions intensified, reaching a head in the last two weeks. Chrysler and Ford are still in negotiations with the UAW, although Chrysler is said to be close to a deal of their own. Ford has extended its current contract indefinitely while negotiations continue. Contracts between each of the Big Three and the UAW expired on Wednesday.

What are some of the focal points of the new contract between GM and the UAW?

The contract has not been officially released to the media, so many parts of the negotiations remain unknown. Items that have been announced include a $5,000 signing bonus per UAW worker and a $3 gradual increase in per-hour wages for entry-level jobs. Rumored items include a proposed buyout of about 1,000 skilled trades workers and new jobs for at least three more factories, including two more in Michigan, over and above the ones that were already slated for increases in announcements made by the company earlier this year. Retirement benefits, which were considered a potential target for further cuts, are rumored to have been maintained at near-current levels. Health care benefits also are thought to have been spared any significant changes.

Now that an agreement has been reached, what happens now?

The contract agreement now goes to local UAW leaders. They are expected to receive the new deal on Tuesday to begin going over the proposed changes. After local leaders see the pact, it goes out to the approximately 48,500 UAW workers that are employed by General Motors for ratification. Ratification is expected to take seven to 10 days.

What did the sides have to say about the agreement?

Both sides table have proclaimed themselves pleased with the way that negotiations turned out. UAW President Bob King was quoted as saying, "We're proud of this agreement and are happy that it truly recognizes that the success of the company is tied to the success of the workers."

GM Vice President of Labor Relations Cathy Clegg said in statements after the conclusion of negotiations that, "We worked hard for a contract that recognizes the realities of today's marketplace, enabling GM to continue to invest in U.S. manufacturing and provide good jobs to thousands of Americans." The UAW is expected to take the new contract with GM into negotiations with Chrysler and Ford.

Vanessa Evans is a musician and freelance writer based in Michigan, with a lifelong interest in politics and public issues.

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