General Motors (GM) and the United Auto Workers (UAW) union have reached a tentative agreement for a new four-year contract covering approximately 52,600 workers at United States assembly plants, according to statements from both parties. In a statement from GM, Cathy Clegg, GM North America Manufacturing and Labor Relations vice president, said, "The new UAW-GM national agreement is good for employees and the business. Working with our UAW partners, we developed constructive solutions that benefit employees and provide flexibility for the company to respond to the needs of the marketplace." The UAW posted an announcement to its Facebook page, also stating that an agreement had been reached for a tentative proposal. At this time, no details of the agreement have been provided, pending the UAW delivering the proposal to its members.
Significance: The next steps are for the UAW leadership to take the proposal to the UAW's National GM Council, made up of local UAW presidents. The council will vote on 28 October; if they approve, the tentative agreement becomes a proposed contract, and the UAW members will vote for or against ratification. GM is the second national contract to be proposed; FCA union workers approved the second iteration. It is widely expected that the new contract will address closing the gap between Tier 1 and Tier 2 workers, as well as offering a healthy signing bonus. The proposal may also commit to specific future product programs. Throughout much of 2015, GM made announcements for investing in US production, but the contract talks may bring further details to the surface. The UAW had set a deadline of 11:59 pm on 25 October for reaching an agreement, with the potential for a strike if a deal had not been reached. A strike, however, could have been costly for both GM and the union.
