Tag Archives: two-tier wages

GM Announces $5.4 Billion in U.S. Plant Investments

Since June 2009, GM has announced U.S. facility spending of ~$16.8 billion. About $11.4 billion of that has come since the 2011 UAW-GM National Agreement that is up for renewal, with the two-tier wage system a major potential point of contention. In total, GM said these investments have created 3,650 new jobs and secured the positions of approximately 20,700 others. Continue reading

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CAW Members Approve New Chrysler Two-Tier Labor Contract

CAW members at Chrysler have approved a new collective bargaining agreement, voting 90% for ratification, the Canadian union announced late yesterday. The number of Chrysler members actually casting ballots was not disclosed after ratification meetings held over the weekend in Windsor, Brampton and Etobicoke, Ontario.

It was the end of a difficult series of negotiations for the weakened union, as the three multinational automakers – Chrysler, Ford and GM – presented a united front and asked for the end of all defined benefit pensions, cuts in current wages, which ranged from C$34-$41, dropping the “30 years and out” retirement provision, and elimination of most work rules. The Detroit Three argued that an overvalued Canadian dollar, unhealthy financial markets, and increasing imports from Asia and Europe, required the drastic givebacks. When the deal was finally done, a partial victory emerged for both sides, and it was arguably the best the union could do against job-exporting automakers without bringing the factories tumbling down on its own union members. Continue reading

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GM CAW Members Overwhelmingly Approve New Contract

CAW members at General Motors have approved a new collective agreement by 73% after voting took place at a series of ratification meetings Wednesday and Thursday in Oshawa, St. Catharines and Woodstock, Ontario. The union did not release the actual number of members who voted but said that 72% of production workers approved the deal, with skilled trades members 79% in favor. The CAW represents 21,000 workers at the Detroit Three auto companies, including more than 8,000 GM workers including 2,500 at CAMI in Ingersoll, Ontario. Continue reading

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Ford CAW Approves First Four-Year Two-Tier Wage Contract

Now for the first time at Ford Canada under a “New Hire Grow-In program” fledgling union workers start at C$20.40, equal to 60% of the current highest member $34 base rate, and only get full compensation after ten years. The Obama Administration broke the power of the UAW in the U.S. as required terms for financing bankruptcy reorganizations at Chrysler and General Motors. As a result, unionized costs in the U.S. are now lower than in Canada and at some Japanese North American plants. Continue reading

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