GM - UAW Deal: Non-Core Workers To Get Half Pay!
As many insiders predicted when General Motors and the United Auto Workers (UAW) shook hands earlier this week, the shift of $50 billion in health-care obligations to the union fund was just half the story. Citing people with knowledge of the plan, Bloomberg is reporting today that GM and UAW have agreed to create a new class of jobs that’d pay about half the current rate thus breaking UAW's tradition of equal earnings for union members. Under the agreement, the so-called non-core employees like janitors and maintenance workers would get receive about $28 an hour in pay and benefits, compared with $51 for present employees. -Continued after the jump
While current “non-core†workers wouldn’t be affected by the accord, GM will try to by them out with the new pay structure applying to their replacements. But will this truly help GM? We can’t say for sure since it isn’t clear yet how many of GM's 73,000 current UAW- represented positions will be considered as non-core jobs. Analysts believe however that in order for this to have an substantial impact on GM, it would have to concern more than 5,000 workers.
Commenting on the report, Richard Block, a labor professor at Michigan State University in East Lansing told Bloomberg, “The company likes it because it cuts compensation costs and the union can swallow it because the people affected aren't going to vote because they don't exist yet,''. How true Mr. Block; what the eye doesn't see the heart doesn't grieve...
Via: bloomberg
- Toyota Brings In Security Guards To Personally Escort Sacked Workers In Australia
More than 200 workers Toyota workers at the firm's Altona plant in Melbourne, Australia, were in for a nasty surprise on Monday as the company went ahead with its original plan to axe 350 employees. The remaining workers will be sacked on Tuesday....
- Chrysler Llc And Uaw Reach An Agreement Over New Contract
After General Motors and Ford, Chrysler is the last of Detroit's Big Three to reach an agreement with the United Auto Workers union. The new four-year contract, which is the first after Chrysler’s 2009 bailout and the Fiat deal, covers UAW’s...
- Ford In Talks With Uaw About Adding 10,000 Jobs, Move Fusion Production From Mexico To The U.s.
The Ford group is currently negotiating a four-year contract with the UAW (United Auto Workers) union, which could add as many as 10,000 new jobs at its American factories. Citing sources familiar with the issue, Bloomberg News reported that the job-discussion...
- Gm Employees On Nationwide Strike As Uaw Talks Fail
As many insiders predicted, contract talks between General Motors and the United Auto Workers failed resulting to the first nationwide strike of GM factory employees since 1970. The strike was caused due to the conflict between GM’s CEO Rick Wagoner's...
- They're Walking As We Speak, Er..... Type
Check it out for yourself, I'm not in Detroit this time around to watch the strike begin and end. Nevertheless, Chrysler LLC workers - those who are members of the United Auto Workers - are walking off the job right now. Two dozen plants. 45,000...