UAW vote on GM deal could be nail-biter
DETROIT — The fate of the UAW's deal with General Motors could come down to the last few votes.
In results reported Tuesday, a modest majority chose to ratify the proposed four-year labor contract, but three union locals rejected it.
Early in the day, Local 598, which represents 2,573 workers at Flint Truck Assembly, approved it by 72% to 28%. Production workers voted yes by an even wider margin, but that was partially offset as skilled trades workers voted no by 60% to 40%.
In what could be a sign of trouble, however, Local 276, with 4,125 members at the Arlington, Texas, Assembly Plant, voted no by 51% to 49% among production workers. It was rejected by an 84% to 16% gap among skilled trades.
GM plans to invest $1.4 billion at Arlington to modernize the plant where workers produce the highly profitable Cadillac Escalade, GMC Yukon, Chevrolet Tahoe and Suburban. That is the largest single investment of the more than $7.3 billion the automaker is spending to upgrade U.S. manufacturing operations.
Production workers at GM's Toledo Transmission plant approved the pact by a narrow 51% to 49% margin, but skilled trades workers voted no by 59% to 41%. Local 160, representing UAW people at the GM Tech Center in Warren, also voted no by 62% to 38%, according to its Facebook page. About 1,150 people voted there.
At Local 651, which represents a parts warehouse in Davison and other facilities near Flint, 564 voters ratified the contract by 91% to 9%.
Results were expected Tuesday evening from the Orion Assembly plant in Oakland County, Mich.
To be ratified, a majority of those voting must vote yes. About 52,700 are eligible to vote. Voting ends Friday.
Last weekend, more than 60% of workers at UAW Local 31 in Kansas City, Kan., voted to reject the contract, but workers at UAW Local 652 in Lansing and Local 174 in Ypsilanti voted in favor of the agreement.
UAW leaders declined again to comment while voting continues. Privately they are concerned about complaints from workers at four component plants who will not see their wages rise to parity with workers at assembly, power train and stamping plants.
Most skilled trades workers are voting no for several reasons. Some have expressed unhappiness that they are not eligible for a $60,000 retirement incentive. There also are concerns that the contract will gradually broaden the range of jobs tradesmen are required to perform, and reduce the number of skilled trades jobs in certain plants.
Only production workers who are ready to retire can take advantage of the retirement sweetener. In the 2011 contract, skilled trades veterans near retirement were offered a $65,000 lump sum that was not available to production workers.
If ratified, all UAW workers at GM would receive an $8,000 signing bonus and a raise. Entry level production workers currently paid between $15.78 and $19.28 per hour would see their wages increase to between $17 and $22.50 per hour and would eventually earn about $29 per hour.
Workers hired before 2007 would receive 3% raises in the first and third years of the contract and 4% lump-sum bonuses in the second and fourth years of the agreement.