Published: Thu, October 17, 2019
Markets | By Otis Pena

UAW and GM reach proposed tentative agreement to end strike

UAW and GM reach proposed tentative agreement to end strike

General Motors Co and the United Auto Workers (UAW) union have reached a tentative deal for a new four-year labour deal, moving the sides closer to ending the month-long strike by about 48,000 hourly workers that had drawn the attention of United States President Donald Trump and potential Democratic rivals in the 2020 USA presidential election.

In a Wednesday news release, the UAW confirmed it agreed to a tentative labor contract with the automaker.

It's been 26 days since UAW members received their last paycheck from GM.

The deal is likely to include some pay raises, lump sum payments to workers, and requirements that GM build new vehicles in US factories, the Associated Press reports.

US prosecutors' probe of alleged corruption within the UAW expanded with the arrest of a senior union official.

They joined more than 49,000 of their fellow UAW members around the country who went on strike starting September 16.

From the first day of the strike, Local 1005 members picketed at the plant on Chevrolet Boulevard in Parma, saying they were "dug in" until a settlement was reached - even if it took months.

The deal was hammered out Wednesday but it won't immediately end the strike by more than 49,000 workers.

O'Hara spoke by phone to News 5 before heading to Detroit for Thursday's meeting.

The tentative agreement is voted on by the UAW-GM bargaining committee and then UAW-GM council that includes local union presidents and shop chairs. "After ninety days, I finally got full-time employment". This is a meaningless provision since there would be nothing to stop the company from repeatedly laying off temporary workers before they reach the three-year threshold.

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It's also an especially critical moment, says Beck, because both workers and the company executives are aware that there are major changes ahead for the auto industry. Workers have been relying on strike pay of about $250 a week from the UAW.

On the picket lines at a General Motors transmission plant in Toledo, Ohio, passing cars honked and striking workers celebrated a tentative contract deal by munching on 10 pizzas dropped off by a supporter.

The news of a tentative agreement broke right before noon.

Among rank-and-file workers there is enormous opposition to another sellout. Future allocations for GM's Warren, Michigan assembly - another idled plant - is unknown. "I don't understand what General Motors was expecting to get out of us".

Johnson added that the company's offer would "create a clear path to permanent employment".

UAW leaders also have credibility issues: President Gary Jones was implicated last month by federal prosecutors in an indictment of a former confidant who conspired to embezzle member dues and spend the money on stays at luxury villas, golf gear and cigars.

Barra had met with UAW President Gary Jones and the union's lead GM negotiator, Terry Dittes, on October 9 to push for a swift resolution to the strike.

The union demanded some of the vehicles that GM is now building in Mexico shift back to the United States factories. Since then, almost 49,000 nationwide have been surviving on strike pay of just $250 a week and raised to $275 last week.

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