For now, the work stoppage is underway, although now that the UAW-GM National Council has sent an interim agreement to members, employees of GM suppliers may soon return to work. However, a ratified treaty is not guaranteed. If approved by the National Council, the proposal will officially become an interim agreement that will be subject to ratification by GM`s temporary workers. The ratification is expected to last one to two weeks. At the same time, the G.M agreement allowed three closed plants to be permanently closed, including one in Lordstown, Ohio, eliminating excess production capacity at a time when car sales were slowing. It also puts the company in a more stable position when the economy enters recession. As part of the agreement, the Warren Tech Center will receive a new vehicle program, $200 million in investments and the maintenance of approximately 75 jobs. Lansing Delta and Spring Hill, Tennessee, assembly plants will receive a next generation of mid-sized SUVs worth $1 billion and 5,000 jobs. The agreement also includes ratification bonuses of $11,000 (compared to $8,000 in 2015) for permanent employees. Temporary employees would receive a $US 4,500 ratification bonus, up from 2,000 $US in 2015. The company would pay the bonuses during the second pay period after the agreement was ratified. A cap of $12,000 for recipient companies is also being removed and permanent employees continue to receive US$1,000 for every $1 billion in upstream tax revenue generated by GM in North America. The deal ends a costly strike for both UAW workers and General Motors, which has become one of the longest resignations in GM`s history.
The ratification process requires a simple majority for the employment contract to go beyond the provisional phase. This story will be updated as new information becomes available. Under the agreement, full-time workers who worked for three years or more would be permanently hired from January 6, a priority request from the UAW and many members. Part-time workers who have worked for at least two uninterrupted years become regular employees as of January 1, 2020. Temporary workers who work for at least one year are also entitled to paid and unpaid leisure time. If the provisional agreement does not get a majority of votes, it is again up to the rope for GM negotiators and the GM UAW negotiating committee to reach agreement on the objections raised. UPDATE 17.10.19, 3:30 p.m.m: Automotive News reports this afternoon that the terms are discussed in the proposed agreement. The UAW GM Council met today for most of the day, but has not yet made a recommendation for a vote on ratification.
Under the terms of the interim agreement, the Hamtramck plant near Detroit, which currently employs about 800 people to build the Cadillac CT6 and Chevrolet Impala, would not close as planned and GM would build its future electric pick-up truck there; but the Lordstown assembly plant in Ohio, with transmission sites in Michigan and Maryland, would close permanently. GM made a statement to AN in which it said it would continue its battery production projects in Ohio and invest a total of $9 billion in the United States.
