Tough Negotiations Ahead

by | Jun 25, 2015 | News

uawThe United Auto Workers will begin formal negotiations with the biggest automakers in the U.S. next month. Though General Motors Co. and Fiat Chrysler Automotive will enter into negotiations first, July 13 and 14 respectively, the UAW hopes its negotiations with Ford, which begin July 23, will lead the way in setting the bar for wages and benefits. This tactic is also called “pattern bargaining.”

uaw-2317

Source: WLFI

After agreeing to a two-tier wage system with Ford in 2011, UAW’s primary goal in these negotiations is to close that gap. Ford has stated, however, that the lower tier designed for entry-level employees has been critical to “its ability to hire more than 15,000 U.S. workers since 2011.” Though both sides believe the other is willing to compromise, it will be interesting to watch this play out. Rex Blackwell, former GM labor relations vice president, must agree based on his June 1 decision to retire rather than serve as lead negotiator against UAW. In other UAW news, former Local 2317 president Michael Bennett has been accused of embezzling close to $85,000 from the local.

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