General Motors submitted a new contract proposal to the UAW on Monday morning as the union's nationwide strike against GM entered its fourth week, the Free Press was told.
The company was still awaiting the union's response by early evening, two people close to negotiations said. Details of what was in the proposal remain confidential, they said.
But key to the union's demands is a stronger guarantee that GM will build traditional vehicles, as opposed to electric or autonomous cars, in U.S. plants, said one of the people. GM CEO Mary Barra has said GM envisions an all-electric future and more self-driving cars. She has said GM would transform primarily into a technology company that makes cars.
That vision is at odds with the UAW's desire to ensure job security for its members.
"GM is not interested in cars in the future," said a person close to the negotiations. "We’re still a ways away from the electric vehicles and the autonomous vehicles. As you go to the electric vehicles and autonomous vehicles, they don’t take as many parts and less manpower to assemble."
That means fewer union jobs in the future.
GM had no comment on Monday's talks other to say: “We continue to negotiate in good faith with very good proposals that benefit employees today and build a stronger future for all of us. We are committed to continuing discussions around the clock to reach a resolution.”
The issues
About 46,000 UAW members went on strike at 12:01 a.m. Sept. 16. GM and the UAW bargained all day Monday and were expected to resume Tuesday morning.
Union members, meanwhile, girded for what they fear could be a long strike.
People close to the talks said the parties remain "hung up on" three issues besides future U.S. production. Those are:
- Skilled trades
- In-progression workers
- Temporary workers
The UAW wants GM to allow more apprenticeship programs for core trades workers to become skilled tradesmen. Currently, GM classifies skilled trades such as electrician, pipe fitter, die maker and millwright under the umbrella of "mechanical." That generic classification makes it hard to create apprenticeships.
“They’ve got to figure this out because with so many people retiring, we have no one to bring in under the crafts," the person said.
More: GM's much-anticipated 2020 Corvette Stingray to be delayed by UAW strike
The UAW also wants to shorten the amount of time it takes for in-progression workers to reach top pay. Currently, workers hired after 2007 start at $17 an hour and rise to $28 an hour after eight years.
Also still being hashed out are issues involving temporary workers, which, at one point, were thought to be largely worked out. Temps are paid significantly less than permanent workers and lack the same benefits. The temps, who are paid $15-$19 an hour, can work for several years without an assurance of a permanent role. The UAW agreed to expanded use of temps at all three Detroit automakers as the industry headed into the recession a decade ago.
A long strike
Some leaders of UAW locals say the lack of a tentative agreement is starting to worry some of their younger members. The UAW strikers are paid $250 a week strike wages from the union's strike fund of $800 million.
"I have about 500 people who are young, with low seniority, who are very, very scared," said a local UAW leader who asked to not be identified. "It's hard to get a read on things. Our leadership thinks it could go till Christmas."
Some strikers said they are prepared to go the distance. They view this as the opportune time to secure wages, job security, a pathway for temporary workers to become permanent and other benefits.
"As far as I am concerned, the company has regressed in its offer and I and my members are willing to stand out here for as long as it takes," said Jason Watson, shop chairman of UAW Local 2164 at Bowling Green Assembly.
Watson represents about 1,000 members. He said his members are getting antsy wanting to know more about where the negotiations are headed.
"As somebody who's been in bargaining for 15 of my 25 years," part of negotiations is like "playing a game of poker," said Watson, noting that a poker player doesn't tip his hand.
"Our members are curious about the details, but they understand why the details are being withheld," said Watson.
Governor speaks out
Reaching a tentative agreement sooner rather than later is in many people's best interest.
About 10,000 workers in Mexico, Canada and at U.S. suppliers have been temporarily laid off because of the strike. Now, some car dealers are starting to worry about inventory and parts supply, and GM has lost as much as $1 billion because of the downed production.
GM also faces delayed product launches — the Free Press learned Monday that retooling of the Bowling Green plant for production of the much ballyhooed 2020 midengine Corvette has been delayed because of the strike.
"GM really wants that product on the road," said a local UAW president who spoke on condition of anonymity. "Everything’s going to be on hold. I am waiting to see the Equinox go down, that’s when it will really hurt."
The Chevrolet Equinox is GM's biggest selling SUV.
The strike could also be damaging to Michigan's economy. Gov. Gretchen Whitmer said Monday that she intended to meet with the striking workers in the Lansing area.
"I’m very concerned about it," said Whitmer, speaking to reporters near Lansing. "These things are important that they try to remedy them and find some common ground as quickly as possible."
She added that, “Depending on the day, you get a different message. I think that’s the nature of negotiations. My hope is they stay at the table and keep working until they get it done and that it results quickly.”
More: Move to close training center emerges in midst of GM-UAW contract talks
More: Week 4: As UAW GM strike takes its toll, workers vow they're more committed than ever
More fallout
On Monday, GM partially idled an engine plant in Ramos Arizpe, Mexico, because of the U.S. strike. But the assembly plant there was still running, said a GM spokesman. That's where GM builds the Equinox and Chevy Blazer SUV.
After a week of scheduled down time, GM's CAMI plant in Ontario was back up running Monday. GM builds the Equinox there too.
Last week, GM idled its factory in Silao, Mexico that builds its Chevrolet Silverado and GMC Sierra pickups. That impacted 6,000 workers in Mexico and two of GM's most profitable and biggest selling vehicles.
Dealer Tommy Brasher in Texas sells a lot of pickups. He said his inventory of regular pickups is good for now, but it is growing "skimpy" on heavy-duty pickups. Those are assembled in Flint, which idled on Sept. 16.
"A lot of our stuff comes out of Mexico, so that's slowed," said Brasher, owner of Brasher Motor Company in Weimar, Texas. "In a strike, it's a stalemate where nobody wins. GM isn't winning, the UAW isn't winning and we're not winning."
Brasher can hold out two to three more weeks before the strike will really hurt his business, he said.
"It'll hurt mostly in the area of parts," said Brasher. "We just have to work around it and give the customers rental cars."
Contact Jamie L. LaReau: 313-222-2149 or jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter.
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