The tentative contract hammered out by the United Automobile Workers and General Motors won’t please all of the union’s members, but it is sure to get strong support at the Detroit-Hamtramck assembly plant.
The factory, which employs 700 U.A.W. members, is scheduled to close in January. But under the contract, G.M. has promised to spend $3 billion to retool Hamtramck to make battery modules and electric trucks, most likely increasing its work force and ensuring its operation for at least several more years.
“I think it’s a good contract,” Wiley Turnage, chairman of Local 22, which represents Hamtramck workers, said Friday. “I’m happy.” He said he planned to vote in favor of the contract and to recommend that his members do the same.
If ratified by the U.A.W.’s rank and file, the contract will end a strike that has idled 34 factories in seven states for more than a month and has cost G.M. an estimated $2 billion in operating profit. The walkout’s effects have rippled through the North American auto industry, affecting production and idling workers at parts suppliers and G.M.’s operations in Canada and Mexico.
Voting on the contract will take place next week, with a result due on Friday. A simple majority is required for ratification, but it must include a majority of skilled-trades workers — the electricians and other technical specialists who maintain machinery. If it does not, the union will have to bargain with the company to address their concerns — as occurred in 2015, the last time G.M. negotiated a contract.
The agreement includes provisions for higher wages and a process that allows temporary workers to become full-fledged employees. It also enables full-time hourly workers to rise to the top wage of $32 an hour within four years, ending a two-tier wage system that fostered tensions between workers. Each worker would also be paid a bonus of $11,000.
RBC Capital Markets estimated that the contract would raise G.M.’s labor costs by $100 million a year.
For its part, G.M. secured the union’s acceptance that three plants already idled, including a factory in Lordstown, Ohio, will close permanently. That will help G.M. guard against excess manufacturing capacity at a time when auto sales are slowing, and put G.M. in a more stable position if the economy goes into a recession. The union went into the talks hoping to prod G.M. into reactivating the Lordstown plant.
A rejection of the contract would be a major setback for the U.A.W. president, Doug Jones, and the union’s other senior officials at a delicate moment. Before the strike, union leaders had come under heavy criticism from the rank and file over a federal corruption investigation in which several high-ranking officers have been charged with using union funds for lavish travel and personal purchases.
Many union locals have started planning informational meetings to explain the terms of the contract to members. Darlene Maddox, who was laid off when the Lordstown factory closed this year and accepted a transfer to Lansing, Mich., said she was very disappointed that her old plant wouldn’t be saved but wanted to know more before deciding how to vote.
“My first instinct is to vote no,” she said. “But the major highlights appear to be good.”
Others said they were encouraged that temporary workers would be able to become permanent employees with full benefits after three years of service.
Under current rules, temporary workers earn about $15 an hour, can be laid off at any time and have no dental or vision insurance.
Linda Castro, a temporary worker at a plant making sport utility vehicles in Spring Hill, Tenn., joined G.M. in January 2017, was laid off after a few months and more than a year later was recalled. She said she was worried that G.M. would lay off temporary workers before they could become full employees.
“No one is going to make it to three years,” she said. “So it’s useless.”
Others said the end of the two-tier wage system was a big victory. Under current conditions, some G.M. workers earning less than $20 an hour work alongside veterans making $31 an hour, the current top wage. The proposed contract would move workers to the top wage in four years, half the time it takes now.
“For me, what matters is making sure everyone makes the same wage, and to be able to do that in a time frame that’s not eight years,” said Ashly Luna, an assembler at a truck plant in Flint, Mich., who has been at G.M. for 12 years.
The proposed contract also would leave the workers’ share of health care costs unchanged at about 3 percent, well below the level paid by other manufacturing workers and G.M.’s salaried staff.
D. J. Calma, another line worker in Flint, said autoworkers deserved generous health care terms because of the physical toll of assembly work.
“In the short amount of time I’ve been here, 12 years, I never thought my body would feel this way,” he said. “It’s the repetitious squeezing. You’re putting your body to the test, truck to truck.”
Todd Campanella, an officer in a U.A.W. branch that represents more than 800 G.M. employees in Rochester, N.Y., said the leadership of his local would meet with senior union officials over the weekend to discuss the contract before presenting it to members for a vote.
Mr. Campanella attended the meeting on Thursday in Detroit at which leaders of G.M. union locals gathered to debate the proposed contract. He said representatives from idled plants had voiced concerns about the agreement before the group voted to recommend it to workers.
“We’re all in this together, and when some of us are hurting, we’re all hurting,” Mr. Campanella said. “That’s really where the discontent would come from. Other than that, a lot of the contract was very positive for a lot of the plants.”
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G.M. Workers Begin to Size Up the Deal Their Union Is Selling - The New York Times
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