GM, UAW talks begin

Wire/staff report

DETROIT

Top officials from the UAW union and General Motors were all smiles Monday as they kicked off contract talks and promised to work together even as sharp differences percolate just beneath the surface.

This year, the union wants to win wage increases for autoworkers after years of rising sales and profits among U.S. automakers, while the manufacturers will want to hold down labor costs so they can remain competitive with Asian and German rivals.

Those opposing goals potentially put the union and the companies on a collision course despite a desire by both sides to solve their differences.

UAW President Dennis Williams noted that entry-level workers hired under two-tier wage structure adopted in 2007 do not earn enough to be considered “middle class in the way they should be,” and reiterated the UAW’s goal to close the pay gap with those hired before 2007.

For those hired after 2007 (the Tier 2 workers), the 2011 contract lifted their hourly pay from $15.78 to $19.28. Those hired before 2007 are still making $28.50, if they work on the line, and about $33 if they are in skilled trades such as electricians, pipe fitters or carpenters.

“These negotiations will not be easy. But they are no more difficult than those we’ve had in the past,” Williams said.

GM CEO Mary Barra said she has confidence that the parties will reach a new contract that will be good for both the company and its employees.

The UAW and Detroit Three have made progress in recent contract talks to lower the automaker’s overall labor costs from $78 per hour to $54 per hour for wages and benefits, according to the Center for Automotive Research. Fiat Chrysler is now equal to the German and Asian automakers’ U.S. plants ($47 an hour including wages and benefits), while General Motors and Ford are slightly higher.

“We recognize that the competition is intense and it will only get more intense, that we will face many challenges,” Barra said. “But I believe we can deliver an agreement that will benefit the business and our employees.”

Monday’s ritual handshakes will be replicated today with Fiat Chrysler and with Ford on July 23.

The four-year contract between the UAW and the automakers expires at midnight Sept. 14.

UAW Local 1714 President Robert Morales, who represents fabrication plant workers at the GM Lordstown plant where more than 1.3 million Chevrolet Cruzes have been built, said any time the company was in need of help, the UAW stepped up to make sure the company remained competitive.

Morales would like to see entry-level workers be brought back to the full rate.

“We understand we may not get everything,” Morales said. “I think we will get something in the favor of the UAW.”