What to expect from the tentative agreement that could end GM strike

What to expect from the tentative agreement that could end GM strike

October 17, 2019 0 By Gloria Hornyak

The United Auto Workers announced on Wednesday that they had reached an agreement with General Motors which could potentially end the one-month long strike. The contents are yet to be made public, but key points have been taken into consideration.

A tentative agreement is going to be entered into to appease the workers who were affected by GM’s plan to kill the Detroit-Hamtramck Assembly Plant in Michigan, by replacing it with electric truck production units. The fate of the plant in Lordstown in Ohio is still unchanged.

The agreement will reportedly make a path for temporary workers who have worked with General Motors for over three years to become permanent employees and enjoy the privileges authorized to them. In the existing scenario, these workers made only 7% of what permanent employees are paid.

Additionally, GM has agreed to lessen the cost of health insurance paid by the workers. GM employees were paying only 3% for health benefits which was to be increased to 15% which would have been half the amount paid by average American workers, but the employees are not ready to compromise.

GM’s Mexican production was also a point in contention. The company decided to open and invest in manufacturing plants in Mexico while the ones in the US faced closure. This also agitated the workers. The company is one of the largest auto employers in Mexico which houses assembly plants for Ford, Toyota, and Honda as well.

Local union chapter leaders and the UAW GM National Council will be voting on the temporary agreement this Thursday, which, when approved will be up to rank and file members for final approval. Until then, GM workers continue to strike.