UAW says two locals vote down GM contract

[Newbiewar]

UAW says two locals vote down GM contract

Fri Oct 5, 2007 4:17 PM ET

By Jui Chakravorty

DETROIT, Oct 5 (Reuters) - A United Auto Workers union local in Romulus, Michigan, is the second to reject General Motors Corp's <GM.N> tentative labor contract with the union, the local's president said on Friday.

Members of local 163 voted down the contract on Friday despite the automaker's promise to keep work at the plant. Local President Larry Long said he was unsure why more than 50 percent of the voters were against the deal.

Union members at UAW Local 465, which represents the engine factory in Massena, New York, also voted down the contract on Friday, local President Tony Arquiett said. Under the tentative contract, that plant is scheduled to close in 2008.

At least ten UAW locals representing more than 12,000 of the active members completed voting this week and eight approved the contract.

The UAW's more than 73,000 active GM members in dozens of locals across the United States must vote on the contract reached last week, which ended a two-day national strike against the largest U.S. automaker.

A majority of workers casting ballots must approve the contract for it to be ratified. The UAW is aiming to complete voting by Oct. 10.

The UAW still does not have contracts with Ford Motor Co <F.N>> and privately held Chrysler LLC.

The contract with GM would set a second-tier lower wage for workers not involved in direct production and establish a trust for retiree health-care that would be partly overseen by the union. It also would make 3,000 temporary workers permanent and permit buyouts.

A quarter of the factory workers could be replaced with lower cost hires under the contract.

If approved, the contract would allow GM to greatly reduce the labor cost advantage enjoyed by Toyota Motor Corp <7203.T> and the two other Japanese automakers operating production plants in the United States.

The average UAW-represented GM assembly line worker makes just under $28 per hour before health-care and other benefits that take total hourly labor costs to $73, the automaker has said.

By contrast, Toyota's average hourly cost for workers at its U.S. plants is under $48 per hour including benefits.

GM and other U.S. automakers have argued that they need more flexibility to hire lower cost temporary workers and to pay janitorial and other workers in their plants below the UAW-mandated wage scale.

UAW President Ron Gettelfinger said last week that the union and GM were negotiating a program of buyouts and early retirement offers for the automaker's workers who are making the higher wages.

[ellives]

Hmm - I wonder what they mean when they say "a majority.... must approve..."

[Newbiewar]

Hmm - I wonder what they mean when they say "a majority.... must approve..."

probably means 51% of the 84 plants or however many the UAW control... must approve... so 2 plants wont hurt anything... you will never get 100 people to all agree on something

[Windy-57]

Pointless, they're not going to get a better deal.

This also makes me think about what Ford and Chrysler have been talking about with that they're going to demand more. I don't believe Ford because they can't take a prolonged strike, which is exactly what demanding more than GM got will get them. On the other hand, Chrysler might have the nuts and, more importantly, money to do, but I think this shows that they'll have to fight to get anything more than GM got.

[Newbiewar]

Pointless, they're not going to get a better deal.

This also makes me think about what Ford and Chrysler have been talking about with that they're going to demand more. I don't believe Ford because they can't take a prolonged strike, which is exactly what demanding more than GM got will get them. On the other hand, Chrysler might have the nuts and, more importantly, money to do, but I think this shows that they'll have to fight to get anything more than GM got.

so far... its 3-9... majority is still in gm's favor... one of the 3 is one of the plants that might get shut down... so, i understand their complaint...

i think, ford and chrysler crying bloody murder about how bad GM's deal was might help ratify gm's deal...

[Windy-57]

so far... its 3-9... majority is still in gm's favor... one of the 3 is one of the plants that might get shut down... so, i understand their complaint...

i think, ford and chrysler crying bloody murder about how bad GM's deal was might help ratify gm's deal...

Don't get me wrong, I think GM's deal will pass, but I think the fact that it's 3-9 is a good indication that the deal can't be pushed much further by Chrysler and Ford and still pass.

[Newbiewar]

Don't get me wrong, I think GM's deal will pass, but I think the fact that it's 3-9 is a good indication that the deal can't be pushed much further by Chrysler and Ford and still pass.

i think it will too... but ford complaining only helps... it shows that, these union employees could really get the shaft... and ford/chysler employees, might read into gm's gripes after they get it ratified, and take less concessions then gm... ford and chyrsler may not get a majority even with the same contract...

[Oracle of Delphi]

However, it would be funny as &#036;h&#33; if it got voted down.

[ZL-1]

Romulus

STAR TREK?

[Newbiewar]

STAR TREK?

man, i was delusional... i was looking for some typo i made... haha

[ZL-1]

man, i was delusional... i was looking for some typo i made... haha

sorry, I couldn't resist the joke when I read that town's name

[ellives]

sorry, I couldn't resist the joke when I read that town's name

I see Romulus... where's Remus? Oh yeah..... he's over there with the UAW but it's spelled "Ream Us."

[ZL-1]

I see Romulus... where's Remus? Oh yeah..... he's over there with the UAW but it's spelled "Ream Us."

:rotflmao: