GM's offer to UAW would add lower-paying jobs

UAW tells members there’s 'progress’ in contract talks with GM

UAW tells members there’s 'progress’ in contract talks with GM

A General Motors offer to invest $7 billion in USA facilities includes $2 billion from joint ventures and suppliers for new plants that would pay workers less than the top union wage, a person briefed on the matter said.

The $2 billion investment from entities other than GM is important because those factories would not be run as typical GM plants.

And, while the $7 billion would be invested in facilities with UAW representation, some would be joint ventures with contracts separate from the union's contract with GM. That's in reference to GM's announcement last fall that it would idle two transmission plants, one in Warren and one in Baltimore; along with Lordstown Assembly in OH and Detroit-Hamtramck Assembly. Another person familiar with talks said GM's offer preserves current health care benefits at the same cost.

About half of the proposed jobs would be new and the rest would be considered "retained" because of the investment, Detroit Free Press reported. Further details were not available.

GM spokesman Dan Flores wouldn't comment on the offer.

GM's public overview of its proposal also included investments in eight facilities in four states, additional new vehicle and propulsion programs, an improved profit-sharing formula, ratification payment of $8,000, and retention of health care benefits including new coverage for autism therapy care, chiropractic care and allergy testing.

Releasing the offer just before the strike started at midnight Monday was created to turn up the heat on union bargainers, who until then had said the company's response to union proposals had been slow.

GM said it also offered to build assembly plants in MI and Ohio. In addition, GM will pay for an electric pickup truck that would go into the Detroit-Hamtramck plant, which the company also wants to close.

The Lordstown facility would offer lower wages, the person said. CEO Mary Barra has predicted an "all-electric future" for GM, meaning jobs making gas-powered cars could be in jeopardy.

UAW-GM Vice President Terry Dittes said in a letter Thursday that there has been "some progress" made during negotiations, however, there are still many unresolved issues that concern UAW members.

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