Why many UAW members oppose GM, Ford, Stellantis deals

DETROIT — After contentious negotiations and about six weeks of targeted strikes, the United Auto Workers union has reached a record deal with the Detroit automakers. But not all union members are happy with the tentative agreement.

The deals are recommended for approval by UAW leaders, and each deal is now expected to pass.However, they were significantly rejected in every major Ford and General Motors Plants planted in recent days.chrysler owner worker star It’s still in the early voting stages, but so far most people support the contract.

On Monday, General Motors’ Spring Hill Assembly Plant in Tennessee became the latest major plant to vote against the contract, with 67.5 percent of UAW members rejecting it. Previously, 52% of members at GM’s truck plant in Flint, Michigan, voted against the deal. At Ford, 54.5% of members at the automaker’s Kentucky truck plant — its largest plant in terms of jobs and revenue — voted no.

Industry experts and UAW members interviewed by CNBC said the reasons behind the disapproval vary. These include that under the terms of the agreement, older employees do not receive as many benefits as new employees, including retirement benefits. They are also concerned about the language in the tentative agreement. There is also lingering distrust in the union leadership following past corruption scandals involving former leaders.

Others cited UAW President Shawn Fain’s lofty expectations for 40 percent pay raises, universal traditional pensions and retiree health care, the elimination of “layers” and a 32-hour work week.

“I don’t think the interim agreement goes far enough. I think it’s divisive. It doesn’t eliminate layers and it doesn’t meet all of our needs,” said Brian Keller, a former UAW member and presidential candidate in the past several elections, as well as from Stellantis. An outspoken worker in the Mopar parts business. “You have to remember, from bankruptcy until 2015, we were stagnant. Our wages were not increasing.”

according to UAW Vote TrackerFord came closest to approving the deal, with about 65% approval, as most major plants had already voted. So far, 52% of GM employees have voted for approval. Stellantis is still in the early voting stages, with around 82% of members currently supporting the agreement. However, most of its major plants still need to be voted on.

The UAW did not immediately respond for comment on the results of the vote or when the union expects the vote to end. Each local UAW chapter will conduct its own vote.

The union claims the deals will generate $23 billion in new gains for the union, four times what they saw during the last negotiations in 2019. Veterans are also getting more than all of the previous deal, which is a historic step toward that goal. Unions say “equal pay for equal work” is a cornerstone of organized labor.

The union has prioritized restoring the COLA over increasing some bonuses, including ratifying the bonus to be reduced to $5,000 under these tentative agreements from $11,000 during the last round of negotiations four years ago.

Fein, who spoke at a U.S. Senate committee hearing on Tuesday, repeatedly said that UAW members are the ultimate authority in the union and will ultimately decide whether these deals are approved.But Finn did it last week online broadcast Trying to allay some concerns, including coke, bonuses and other issues.

“I firmly believe these contracts are record-setting and a major victory for our sport,” Fein said. said wednesday In the process of voting. “There were a lot of people in the media and in the business community who said we didn’t know what we were doing. They thought we would never get a deal. But then we got all three.”

Keller, who ran against Fein for president but endorsed him in the runoff against current UAW President Ray Curry, said he also expressed concern about the consolidation of Mopar parts plants, possible future layoffs and contracts. Other wordings are concerning.

Timothy Orner, who works in fleet operations at Stellantis’ Jeep complex in Toledo, is concerned about changes to his 401(k) benefits, which are based on a 40-hour work week with a 10 percent company contribution and an annual contribution of 6.4%. Wages, including overtime pay.

“Just because it’s a double-digit number, it doesn’t mean it’s going to get better,” said Ona, one of the first second-line workers hired in 2009 without a traditional pension and lower benefits. one. “There’s no such thing as ‘over 30’ anymore. They want you to work longer and do things longer.”

The UAW did not immediately comment on the 401(k) changes outlined in the deal.

Fein admitted last week that he didn’t have everything he needed to achieve the UAW retirement he wanted, including pensions and health care. He said the benefits remain the target of future negotiations and would expire on April 30, 2028, if the tentative agreement is approved.

China Jones, a 23-year-old worker at the Louisville Assembly Plant, had a similar sentiment. “Old veterans like us have sacrificed for them (automakers),” she told one local tv station. “And we found nothing.”

GM has the lowest support for the deal so far but has the largest number of legacy workers by percentage, followed by Ford and then Stellantis. Stellantis is also making greater use of temporary workers, who will mostly be converted to full-time employees and be eligible for maximum wages when the deal closes.

“(Workers) hired before 2008 won’t be as excited about this contract, mainly because they will get the 25 percent that everyone gets, but newly hired temporary and promoted workers will probably get around 160 percent,” Art said. ‧ Art Wheaton, professor of labor at Cornell University’s Worker Institute. “Approval votes could be done on a plant-by-plant basis based on the demographics of a particular location. “

If members of one of the automakers such as General Motors vote down their deal, UAW leaders will have to decide whether the next step is to return to the bargaining table, launch a strike or both.

Malik Masters, a business professor at Wayne State University in Detroit, said rejecting a deal or even voting with a larger-than-expected outcome could hinder the union’s ability to organize other companies — a goal for Fein moving forward.

“One of the things that workers at non-union facilities are going to be looking at is the ratification vote,” Masters said. “They want to know why some workers didn’t vote to ratify because it’s a record contract… It’s going to be something worthwhile. Food for thought, and unions must be prepared to address the issues and try to oversee these facilities.”

Fein said the union has received a lot of interest and support from non-union autoworkers. He said the UAW still has goals that were not met during those negotiations.

“There are too many non-union auto workers and too much power behind corporate greed for us to win everything we deserve at once,” he said Wednesday. “That’s why we’re building up our strike power to go even further in 2028. “.

Under the UAW’s tentative agreement, non-union automakers operating in the United States, e.g. Toyota Automotive, honda cars and Hyundai Motor Increased wages for factory workers.

“We call it a UAW collision,” Fain tell the senator Tuesday. “It means ‘you’re welcome’.”