Published: Fri, October 11, 2019
Markets | By Otis Pena

GM Boosts Contract Offer

GM Boosts Contract Offer

An analyst estimates that GM is losing $82 million per day, while workers are having to live on $250 per week in strike pay.

The letter, by GM executive Gerald Johnson, included previously undisclosed details of GM's latest offer to the union, including plans to increase its investment in U.S. facilities to about $9 billion, up from $7 billion, according to the Wall Street Journal.

GM made a comprehensive offer October 7 to the UAW and hasn't received a response in the days since, despite CEO Mary Barra joining a meeting with union leaders October 9. It would increase compensation through wages and lump sum payments, preserve industry-leading health care benefits without increasing out-of-pocket costs, enhance profit-sharing with unlimited upside, and improve the ratification bonus. And since that offer, we've done even more to address the issues the UAW has brought forward.

"We have advised the union that it's critical that we get back to producing quality vehicles for our customers", he wrote. "For temporary workers, our offer also would create a clear path to permanent employment and include a ratification bonus", Johnson's letter says.

"We are committed to the collective bargaining process, and we are committed to our future together", he wrote. "(.) Our offer builds on the winning formula we have all benefitted from over the past several years". That's why before the contract deadline, we made an offer that we felt was strong.

Sandefur's letter was not released publicly, but CNN obtained a copy of the letter, along with one that Dittes sent to him.

Barra met with UAW President Gary Jones and senior union negotiator Terry Dittes on Wednesday at GM world headquarters, where negotiations are happening.

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In a Thursday letter to UAW leaders, GM urged the union to agree to around-the-clock negotiations, while the union insisted in its own letter on dealing with five specific issues first before it responded to the broader proposal made to union negotiators Monday.

One of the five issues the committees are discussing is the fate of four USA factories that GM has indicated could close; another is future technological changes to production, according to the UAW letter.

UAW workers are concerned that as GM shifts to more electric vehicles it will require fewer workers, and battery production may result in workers getting paid less than at existing transmission plants.

Job security remains a major issue in negotiations.

GM's latest offer boosts wages and lump-sum payments and preserves health care benefits, Gerald Johnson, the automaker's executive vice president of manufacturing, wrote to employees October 11.

GM has announced plans to close four United States plants. No new formal offers are expected to be presented by UAW officials, according to one source familiar with the talks.

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