UAW leaders ratify new GM labor agreement – CNBC

Posted: Tuesday, November 24, 2015

Ratification, announced by the union, was delayed two weeks because skilled trades workers, who are fewer than general production workers at GM’s U.S. auto plants, had voted it down.


UAW leaders quizzed skilled trades workers on the reasons for their rejection and then went back to the negotiating table with GM seeking changes. Skilled trades workers in general maintain machines at auto plants, and include electricians, pipefitters, tool makers and millwrights


The new contract goes into effect on Monday. It calls for raises for all workers and the end of the two-tiered pay system, although it will take a newly hired worker eight years to reach top pay rather than the three years it used to take before 2007.


Workers hired after 2007 have made less than those hired before that year.


The average labor costs, of which pay is nearly half, for GM workers will be $60 per hour by 2019, up from $55 an hour now, according to a new study by labor analysts released on Friday.


In a statement, GM said ratification of the contract was “good for employees and the business.”


The UAW said its leadership ratified the deal after GM and union negotiators worked through objections of the skilled trades workers, which included “core trades classifications and seniority rights.”


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