The four-year contract between General Motors and the United Auto Workers has expired as negotiations on a new deal continue.
FILE - This May 16, 2014, file photo shows the General Motors logo at the company's world headquarters in Detroit. The United Auto Workers union is letting its contract with General Motors expire just before midnight Saturday, Sept. 14, 2019, increasing the likelihood of a strike as early as Sunday night.
Union officials told GM they would let the contract lapse just before midnight Saturday, increasing the risk of a strike as early as Sunday night. Union members working Sunday were to report as scheduled. UAW Vice President Terry Dittes said in a letter to members that, after months of bargaining, both the union and GM are far apart on issues such as wages, health care, temporary employees, job security and profit-sharing.
“We are prepared to negotiate around the clock because there are thousands of GM families and their communities - and many thousands more at our dealerships and suppliers - counting on us for their livelihood. Our goal remains on building a strong future for our employees and our business,” the GM statement said.
Union officials surely will face questions about the expanding investigation that snared a top official on Thursday. Vance Pearson, head of a regional office based near St. Louis, was charged with corruption in an alleged scheme to embezzle union money and spend cash on premium booze, golf clubs, cigars and swanky stays in California. It’s the same region that Jones led before taking the union’s top office last year. Jones has not been charged.
Talks between the union and GM were tense from the start, largely because GM plans to close four U.S. factories. The union has promised to fight the closures.— GM is making big money, $8 billion last year alone, and workers want a bigger slice. The union wants annual pay raises to guard against an economic downturn, but the company wants to pay lump sums tied to earnings. Automakers don’t want higher fixed costs.
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