GM workers will remain on strike while voting on UAW’s four-year contract proposal
United Auto Workers members on strike picket outside General Motors’ Detroit-Hamtramck Assembly plant on Sept. 25, 2019 with Vermont Sen. Bernie Sanders (far left) in Detroit.
Michael Wayland | CNBC
DETROIT – The United Auto Workers’ strike against will continue while union members vote on a new four-year labor contract, adding to the work stoppage’s estimated $2 billion cost for the automaker, the union announced Thursday.
The decision for the UAW’s 48,000 members with GM to continue manning picket lines instead of returning to work was made by roughly 200 local union leaders from across the country during a more than six-hour meeting Thursday in Detroit. Workers have been on strike for 32 days.
UAW spokesman Brian Rothenberg said the voting will start Saturday and is expected to be complete by Oct. 25, adding to the automaker’s production losses, according to estimates from Wall Street analysts.
Shares of GM closed Thursday at $36.19, down 1.3%. The stock, which had fallen by double digits during the strike, is currently down by about 4% since Sept.13 — the last trading day before workers started picketing.
The decision about the monthlong strike was announced as local union leaders between the union and GM that was announced Wednesday. The leaders had to approve the deal before rank-and-file members can vote on it.
The union won several financial gains for members as part of the accord but agreed to close four U.S. facilities, including three plants and a parts distribution center.
The deal includes 3% to 4% raises or lump-sum bonuses, the addition or retention of 9,000 hourly U.S. jobs and $9 billion in new investments, including production of an all-electric pickup for a plant in Detroit that was potentially slated for closure. UAW members also are expected to maintain their health insurance, which is considered “gold standard” and requires employees to cover roughly 3% of the total costs.
The agreement would also pay most union members an $11,000 “ratification” bonus once the contract is signed. Temporary workers, who have a shortened path to become permanent employees as part of the deal, would receive $4,500 ratification bonuses.
The new contract, if ratified by GM members, will be used as a template by the union for negotiations with and .
CORRECTION: This article was updated to correct the timeline for the vote. It’s expected to be completed by Oct. 25.
Article Courtesy of CNBC