Local Uaw Leaders Promote Gm Deal
June 6th, 2010 | by admin |
Evander Klum asked:
The General Motors and the United Auto Workers tentative agreement had already been endorsed by the local union presidents on Friday. The UAW released the summary of the agreement, the highlights of which include for GM to pay the union at least $35 billion for their retiree health care obligation, lower labor costs for the new employees, and the creation of more assembly plants and factories all over the United States.
Being a tentative agreement, the 74,000 UAW members will ratify the deal that is expected to be completed on October 10. The UAW chief, Ron Gettelfinger expressed his confidence that his members will accept the terms of the agreement and that the other two Detroit-based automakers, Ford and Chrysler LLC will pattern many of the terms in the new contract as the UAW deals with them some time next week.
“We’re happy with this stuff,” Gettelfinger said.
According to Dan Flores, spokesman for GM, both the automaker and the union will have great advantages from the deal. Although the union already released the details of the tentative agreement to its members and local officials, GM has not released their comments on the deal. The automaker is waiting for the deal to be ratified by the 74,000 members of the union before they publicize their side on the matter.
“Not only does this new agreement enhance the security for employees and retirees, it enables GM to close competitive gaps in our business, and the projected competitive improvements will allow us to maintain a strong manufacturing presence in the U.S. with significant future investments,” Flores said
In a statement, Gettelfinger said that he is still uncertain to what company the union will deal with, Ford or Chrysler. The UAW chief expects that the labor talks with the other two Detroit-based automakers will begin next week. Ford and Chrysler already extended their contracts with the UAW indefinitely.
The primary content of the deal is the creation of the VEBA or the Voluntary Employees Beneficiary Association. The VEBA is the trust fund to be created for GM to transfer their $51 billion retiree health care liabilities to the 340,000 UAW retirees and their spouses which will be controlled by a board under the supervision of the union.
In January 2008, GM will pay the VEBA $24.1 billion and an additional $5.4 billion foe the health care benefits of the retirees until the VEBA runs itself completely by 2010. Also, the new deal entails GM to pay the VEBA 20 additional payments of $165 million to $1.6 billion in case the fund’s money is insufficient to cover the benefits for at least 200 years.
The union sent a letter to the retirees to clear their misconceptions about the trust fund. The letter said that the union supports the fund as it promotes their benefits if ever GM experiences bankruptcy. The vote of the retirees is not needed for the ratification of the contract.
To address the job security demands of the UAW, GM committed the production of GM products in the 16 assembly plants in its 18 U.S. facilities as released in the summary of the talks by the UAW.
The 16 factories that GM committed to the union will continue to produce its current products and the next generation of those products. A Detroit plant is already scheduled for the production of the Chevrolet Volt, GM’s most awaited Hybrid vehicle set to compete with the best selling Toyota Prius. The Volt will arrive in the American auto market in 2010. On the other hand, a Lordstown plant in Ohio, is planned to create a GM’s new subcompact vehicle.
“The whole thing looks fantastic,” said Dave Green, president of one of two local unions in Lordstown. According to him, the preserves wages and health care for active workers “and we’ve done creative stuff that’s going to make the company profitable in North America.”
Although there are new plans for the said plants, the other plants’ stability are still uncertain.
GMs other plants like that of Orion Township that creates the Pontiac G6 will help BMW (makes BMW bra) gain more and the Wilmington, Del. Plant, because these plants have not been listed with new vehicles in the summary provided by GM.
According to the UAW, its members will get a total of $13, 056 economic gains for the four years of the contract’s execution. Upon ratification of the contract, the workers will also get $3,000 signing bonuses and other bonuses each year. Also the new contract entails new employees to be paid below the regular wage.
The UAW announced that the ratification of the tentative agreement will be completed on October 10.
Collectable Kitchen Plates
The General Motors and the United Auto Workers tentative agreement had already been endorsed by the local union presidents on Friday. The UAW released the summary of the agreement, the highlights of which include for GM to pay the union at least $35 billion for their retiree health care obligation, lower labor costs for the new employees, and the creation of more assembly plants and factories all over the United States.
Being a tentative agreement, the 74,000 UAW members will ratify the deal that is expected to be completed on October 10. The UAW chief, Ron Gettelfinger expressed his confidence that his members will accept the terms of the agreement and that the other two Detroit-based automakers, Ford and Chrysler LLC will pattern many of the terms in the new contract as the UAW deals with them some time next week.
“We’re happy with this stuff,” Gettelfinger said.
According to Dan Flores, spokesman for GM, both the automaker and the union will have great advantages from the deal. Although the union already released the details of the tentative agreement to its members and local officials, GM has not released their comments on the deal. The automaker is waiting for the deal to be ratified by the 74,000 members of the union before they publicize their side on the matter.
“Not only does this new agreement enhance the security for employees and retirees, it enables GM to close competitive gaps in our business, and the projected competitive improvements will allow us to maintain a strong manufacturing presence in the U.S. with significant future investments,” Flores said
In a statement, Gettelfinger said that he is still uncertain to what company the union will deal with, Ford or Chrysler. The UAW chief expects that the labor talks with the other two Detroit-based automakers will begin next week. Ford and Chrysler already extended their contracts with the UAW indefinitely.
The primary content of the deal is the creation of the VEBA or the Voluntary Employees Beneficiary Association. The VEBA is the trust fund to be created for GM to transfer their $51 billion retiree health care liabilities to the 340,000 UAW retirees and their spouses which will be controlled by a board under the supervision of the union.
In January 2008, GM will pay the VEBA $24.1 billion and an additional $5.4 billion foe the health care benefits of the retirees until the VEBA runs itself completely by 2010. Also, the new deal entails GM to pay the VEBA 20 additional payments of $165 million to $1.6 billion in case the fund’s money is insufficient to cover the benefits for at least 200 years.
The union sent a letter to the retirees to clear their misconceptions about the trust fund. The letter said that the union supports the fund as it promotes their benefits if ever GM experiences bankruptcy. The vote of the retirees is not needed for the ratification of the contract.
To address the job security demands of the UAW, GM committed the production of GM products in the 16 assembly plants in its 18 U.S. facilities as released in the summary of the talks by the UAW.
The 16 factories that GM committed to the union will continue to produce its current products and the next generation of those products. A Detroit plant is already scheduled for the production of the Chevrolet Volt, GM’s most awaited Hybrid vehicle set to compete with the best selling Toyota Prius. The Volt will arrive in the American auto market in 2010. On the other hand, a Lordstown plant in Ohio, is planned to create a GM’s new subcompact vehicle.
“The whole thing looks fantastic,” said Dave Green, president of one of two local unions in Lordstown. According to him, the preserves wages and health care for active workers “and we’ve done creative stuff that’s going to make the company profitable in North America.”
Although there are new plans for the said plants, the other plants’ stability are still uncertain.
GMs other plants like that of Orion Township that creates the Pontiac G6 will help BMW (makes BMW bra) gain more and the Wilmington, Del. Plant, because these plants have not been listed with new vehicles in the summary provided by GM.
According to the UAW, its members will get a total of $13, 056 economic gains for the four years of the contract’s execution. Upon ratification of the contract, the workers will also get $3,000 signing bonuses and other bonuses each year. Also the new contract entails new employees to be paid below the regular wage.
The UAW announced that the ratification of the tentative agreement will be completed on October 10.
Collectable Kitchen Plates
Sorry, comments for this entry are closed at this time.