UAW Prepares for Contract Fight

Before announcing members of the GM negotiating team, Dittes lambasted GM for its decision to indefinitely idle four UAW-represented plants in the U.S. The UAW has vowed to fight the closings and lobby for a replacement vehicle for the Chevy Cruze line that was terminated at Lordstown. A suit against GM claims the company violated its contract with the UAW by idling the Ohio facility.

“You can see what we’re up against as we open negotiations this coming summer,” said Dittes. “I can tell you we are ready for the fight…. It’s time for us to stand up, it’s time for us to take what belongs to us and hold on to what we currently have.”

Jones issued a strong warning to the Detroit Three, “There will be no more quiet closing of plants. No more shipping of jobs to Mexico and abroad without a sound. They are on notice.”

Jones said that the union strategy will put the auto companies on defense. “We’ll take this fight to them and we’ll use every last ounce of our leverage. Every last ounce.”

Healthcare costs and the use of temporary workers are expected to headline what may prove to be contentious talks this summer. Other issues include accelerating the time it takes to reach the top pay scale and increasing starting wages.

Jones announced that strike pay will be raised from $200 to $250 per week as it edges toward its goal of $275 per week in January 2020. Currently, the UAW Strike and Defense fund has $721 million.

“The stakes are especially high this year,” said Jones, adding that the pay raise was necessary “should the (auto) companies force us to that extreme.”

The corruption scandal with the UAW and FCA has rattled member loyalty. Jones said he regretted the corruption scandal and plans to introduce reforms that will prevent reoccurrence.

“I am deeply saddened and irritated that some members of this union and some leaders of the auto companies exploited their position to benefit themselves,” said Jones. “To my brothers and sisters sickened by the scandals, we make one thing clear: It is my responsibility from this day forward to strengthen your trust in your union. We do not take your trust for granted.”

The scandal involved payoffs from FCA executives to UAW officials in the form of gifts, trips and credit cards to smooth contract negotiations in 2011 and 2015, alleged the Department of Justice. The federal probe says more than $4.5 million was embezzled from the UAW-Fiat Chrysler National Training Center.

Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research, says softening of sales in the auto industry will make negotiations more difficult.

“I think next year’s not going to be a cakewalk,” Dziczek told AutoNews. “We are many years into this long recovery in the auto industry. We’re on a sales plateau. Many of the actions taken by the government and other factors may be tipping us into a downturn.”