April 27, 2024

U.A.W. Reports Contract Talks Are ‘Very Close’

Meanwhile, there appeared to be little additional progress in parallel talks with Chrysler, though union and company officials are continuing to meet.

“Labor agreements of this magnitude undergo numerous changes and revisions as the language becomes finalized,” Joe Ashton, the U.A.W. vice president in charge of dealings with G.M., wrote in an update posted online. “I am very optimistic that the negotiations process is entering its final stage.”

He concluded, “I truly believe that a settlement is within reach.”

Bargainers from G.M. and the union reconvened at 9 a.m. Friday, 12 hours after adjourning Thursday evening.

“We’ve made great progress,” Jordana Strosberg, a G.M. spokeswoman, said in an e-mail.

The union has agreed to a day-by-day extension at G.M. to complete the outstanding issues separating the two sides, including job commitments in plants, signing bonuses for workers and a pay increase for entry-level employees.

The union’s president, Bob King, has been conducting parallel talks with G.M. and Chrysler, the two Detroit automakers that were bailed out by the Obama administration in 2009.

But Chrysler abruptly asked for a weeklong contract extension on Wednesday night after Mr. King did not attend a scheduled session with Chrysler’s chief executive, Sergio Marchionne.

Instead, Mr. King seeks to set a pattern on wages and bonuses at G.M., and then try to match it at Chrysler and Ford.

The union cannot strike either G.M. or Chrysler as a condition of their federal aid packages. That is not the case with Ford, which turned itself around without government assistance.

It is not unusual for the union to grant a contract extension if it is close to a deal with one automaker. G.M. has been determined to be the first company to settle and establish a cost structure that will help its comeback.

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United Automobile Workers Agrees to Extend Contract Talks with General Motors and Chrysler

The extensions came shortly after the chief executive of Chrysler, Sergio Marchionne, sent a letter to the U.A.W.’s president, Bob King, late Wednesday lamenting that the talks had broken down because Mr.

King did not show up at the bargaining table as expected.

Talks continued past midnight at G.M. until that company and the

U.A.W. agreed to extend their contract as well, a G.M. spokeswoman said. Negotiations with G.M. are scheduled to resume at 8 a.m. Thursday.

Mr. Marchionne sent the letter to Mr. King after the union leader spent the day huddled in contract talks with General Motors rather than Chrysler. A copy of the letter was obtained from sources close to the negotiations,

“I flew back from the Frankfurt Motor Show late last night to be here today to finalize our dialogue that has been started by our teams but that required your presence and mine to conclude,” Mr. Marchionne wrote. “You unfortunately could not be here, I am told, due to competing engagements.”

Mr. Marchionne went on to say that he and Mr. King “failed” employees by not concluding the months-long negotiations before the current contract expired.

“I am willing to extend the contract by an additional week to allow closure on all outstanding matters,” Mr. Marchionne wrote.

Workers for both companies had been anxiously awaiting word of a settlement, and even U.A.W. officials at several plants said they were being kept in the dark about the pace and nature of the discussions.

“We are confident that we can reach an agreement that will meet many of the goals we set at the beginning of negotiations,” Joe Ashton, a U.A.W. vice president in charge of negotiations with G.M., wrote in a message to workers that was posted online Wednesday.

Any agreements must be approved by U.A.W.’s local leaders and then ratified by the rank-and-file membership.

Labor experts expect the companies to offer workers signing bonuses of at least $5,000 to improve the chances of ratification without permanently increasing labor costs.

Workers at all three companies received a $3,000 signing bonus in 2007. Their wages have not increased since 2003.

Talks with the Ford Motor Company are not as far along as the negotiations with G.M. and Chrysler.

On Tuesday, Ford and the union agreed to extend their contract indefinitely, at least temporarily putting off the possibility that a strike could be called. The union can end the extension with three days’ notice, and it might do so when a deal is close to pressure the company to settle.

Talks with all three companies lacked much of the acrimony that has defined past rounds of bargaining in the auto industry. Union leaders have vowed to help keep the carmakers competitive while also seeking ways for workers to be rewarded as the auto industry turns around.

Workers at G.M. and Chrysler are barred from striking over wage and benefit disputes through 2015, a provision they were required to approve when the companies received federal loans as they went through bankruptcy protection in 2009. Their only recourse in the case of an impasse is binding arbitration, a somewhat unpredictable process that both sides have said they want to avoid.

A major theme for the union during these talks has been regaining much of what workers gave up to keep their employers from collapsing under the weight of heavy debt and plummeting sales. But the union also wants to add jobs in the United States after suffering years of wrenching cutbacks at the three carmakers.

Mr. King, the U.A.W. president, has said U.A.W. members each ceded $7,000 to $30,000 worth of pay and benefits since 2005. In 2007, the union agreed to create a two-tier wage system that allowed the carmakers to cut costs by hiring new workers at about half the pay of other workers.

Many in the U.A.W. oppose the two-tier system, but Mr. King has said it is a way for the companies to become more competitive without cutting pay for existing workers and helps create jobs. Only about 4,000 of the 112,000 workers at G.M., Ford and Chrysler earn second-tier wages currently, but the companies hope to hire more people at the lower pay scale as older workers retire, further reducing their labor costs.

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U.A.W. Urges Raise for Entry-Level Jobs

DETROIT — Contract talks between the United Automobile Workers and the Detroit carmakers are entering a more intense phase, with the union pressing for wage increases for entry-level workers as a critical part of a new national labor agreement.

The U.A.W.’s president, Bob King, said on Monday that the union had made a formal proposal for an increase in the $14-an-hour wage for entry-level workers, also known as second-tier employees. Full U.A.W. wages are about $28 an hour. “We are very concerned about the entry-level member having a higher standard of living,” Mr. King told reporters after a speech to the Detroit Economic Club.

The entry-level jobs were created in 2007, when the companies negotiated their current contracts, which expire on Sept. 14. Only about 3 percent — or fewer than 4,000 workers — of the 112,000 union workers employed by the Big Three automakers are paid the lower wage.

But Mr. King said he was mindful of the need to improve the second-tier wages as part of a broader effort to win gains from the Detroit companies, which are now healthy financially.

He stopped short of saying that the union had asked General Motors, Ford and Chrysler for any base-pay hikes or cost-of-living adjustments for its full-paid workers.

“What we have to do is figure out how we raise income in whatever way is possible, whether it’s cost of living or base wage or profit sharing,” Mr. King said.

Executives at the auto companies have indicated a willingness to improve profit-sharing formulas to avoid across-the-board pay increases that add long-term structural costs.

It would be difficult, however, for the companies to resist a specific wage increase for entry-level employees, analysts predicted.

“The lower tier is only slightly above eligibility for food stamps if you have a family,” said Harley Shaiken, a labor professor at the University of California, Berkeley. “It’s the working poor rather than the middle class.”

Over all, Mr. King described the tenor of negotiations as “upbeat,” and reiterated previous pledges that the union did not want to cripple Detroit’s comeback with an onerous contract.

“We are committed to the long-term success of Ford, General Motors and Chrysler,” he said. “The facts are that our companies face a lot competition.”

The negotiations traditionally accelerate after Labor Day, and the union often chooses one of the companies to bargain with exclusively until a deal is reached.

This year’s talks are colored by no-strike clauses agreed to by the union as part of the government’s bailout of G.M. and Chrysler. Ford, which turned around financially without the benefit of federal aid, does not have such a clause, and its workers are voting this week on whether to authorize a strike if an acceptable contract cannot be reached. One of the first votes was taken at a Ford plant near Kansas City, Mo., where workers voted 3,049 to 18 in favor of the authorization.

“I think it sends a pretty strong message,” said Jeff Wright, president of U.A.W. Local 249.

But Mr. Wright added that he thought a strike was unlikely. The last national walkout at Ford was in 1976, and Mr. King said he was hopeful that Ford workers would support a contract that offered parity with G.M. and Chrysler.

“I’m confident that if we get a good contract, we’ll get it ratified,” he said.

Analysts expect the companies to entice workers to approve a deal.

“There’s going to be a signing bonus and it could be significant,” said Arthur R. Schwartz, a former G.M. negotiator and the president of Labor and Economic Associates, a consulting firm. “If that money is hanging out there it will be very hard for members to vote no.”

If a deal cannot be reached at G.M. or Chrysler, their contracts would be settled by an arbitration process. Because of the uncertainty in an arbitration proceeding, Ford may choose to wait until G.M., for example, sets a pattern on economic issues like profit sharing before agreeing to the same terms.

And although both management and labor have said talks were moving smoothly so far, analysts discounted the notion that the talks would wrap up before the Sept. 14 expiration date.

The union needs to extend the discussions to the last minute to prove it has achieved the best deal possible, Mr. Shaiken said. “An early deal,” he said, “implies that if you’d been at the table a few more days, then you could have gotten more.”

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Service Agents End Strike at Air Canada

While the union said that its members would all be back at work by Friday, the settlement put off resolution of the most contentious issue in the negotiations. Binding arbitration will now determine the fate of Air Canada’s plan to give new employees a different pension plan without defined retirement benefits. Current Air Canada workers have a defined-benefit plan that is underfinanced by 2.1 billion Canadian dollars.

“We could not settle that issue in collective bargaining,” Ken Lewenza, the union’s president, told a news conference after apologizing to future Air Canada employees.

Mr. Lewenza said that the airline had agreed to significantly reduce and delay changes it sought to the pension plan covering current employees.

The union asked its members, who went on strike early Tuesday morning, to return to work rather than wait for the results of a ratification vote, a process that will take several days.

“It is business as usual at Air Canada,” Duncan Dee, the airline’s executive vice president and chief operating officer, said in a statement.

But Air Canada’s labor situation is far from resolved. In addition to the uncertainty surrounding the arbitration process, the airline is in contract talks with other unions representing flight attendants, baggage handlers and mechanics.

Last month, Air Canada’s 3,000 pilots rejected a tentative agreement. That appeared to be mainly the result of a plan by Air Canada to start a low-cost carrier using employees who receive lower pay and benefits.

The move came two hours after Parliament began debating legislation that would have forced members to return to work.

Lisa Raitt, the Canadian labor minister, welcomed the settlement.

“The best deal you can have is one they worked out themselves,” she told reporters in Ottawa.

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