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We achieved the Members’ Demand to win double-digit wage increases. For those at top rate, that is 11% at ratification and 25% over the lifetime of agreement, with more significant increases for those not at top rate.
We won COLA back. COLA can increase or decrease over the life of the agreement but will not change our base pay until the end of the agreement. There is an adjustment every 3 months to the increase to our hourly rate, with a maximum healthcare diversion of 10 cents per increase. The cumulative adjustment is added to our base wage at the end of the contract, minus the 5-cent float. The Members’ Demand to restore COLA was fulfilled.
We didn't find any language that significantly deviated from what was explained in the Highlighter. Temporary workers with three months or more of continuous service will be converted to full-time. Future temps will be converted after nine months. Temps will be restricted to 8% of the total active UAW hourly employees company-wide. The union and management have to agree to allow any facility to hire over 10% Temps. It’s still the case that if a temp is laid off for longer than 30 days, that will eat into their continuous service.
The wage progression is now 3 years, which is a return to the 90s language on pay progression. The 70% first year, 75% 2nd year, and 85% 3rd year beats the hell out of past giveaways.
Sterling Axle and Rawsonville achieved wage parity. Those second-tier facility tiers were topped out at $22.50 base rate and now will jump to $35.58 base wage.
Tiers still exist for benefits–more on that soon.
In the case of an indefinite layoff, all full-time members (including temps) with 3 months of continuous employment will now be eligible for one year of SUB Pay and one year of TAP (Transition Assistance Plan) benefits if placed on an indefinite layoff. This also allows our members to continue healthcare benefits for 24 months while on indefinite layoff. SUB pay and short work week will be extended to temps. $8.1 billion in investment was announced, up $2.1 billion from the 2019 agreement.
The agreement adds the right to strike over plant closures. We are looking into the details of what the new language means if the company labels a closure as “idled” or “unallocated,” and if the right to strike would still be protected.
Certain UAW workers are offered transfers to the un-unionized Tennessee EV facility without loss in pay or benefits, providing a foothold for organizing. The Marshall battery plant is being brought under the Master Agreement, but with significant carve-outs such as the right to strike and control over product. Protections for the EV transition do not guarantee that other EV plants will be brought under UAW recognition or the Master Agreement.
Regarding pensions, our Members’ Demand was to win a defined-benefit pension for all workers, and that “all workers deserve the retirement security UAW members had for generations.” There was a substantial increase in the 401(k) company contribution, from 6.4% to 10%, but no defined-benefit pension was added for post-2007 hires. In sum, the Members’ Demand for defined-benefit pensions for all was not met.
Regarding retiree pay, our Members’ Demand was to “significantly increase retiree pay.” There was a pension increase of $5 per year of credited service and an increase in the supplement for those who retire before age 62. There were minor discrepancies between highlights and change pages, and the retirement buyout package was reduced from $60,000 to $50,000. In summation, the Members’ Demand for raises for future retirees was met (for traditional workers), but not by a lot considering how long it’s been since pensions were increased. Current retirees will receive an annual bonus of $500. The Members’ Demand for current retirees was met, but not by a lot.
Regarding retiree healthcare, the Members’ Demand was to “re-establish retiree medical benefits” for all workers. This was not achieved, no defined retirement healthcare was added for post-2007 hires. In summation, the Members’ Demand for “retiree healthcare for all” was not met.
For the first time in our union’s history, paid leave of up to 80 hours, or two weeks, will be established for birth, legal adoption, and foster placement. Note that paid parental leave will run concurrently with FMLA.
Vacation Scheduling
The scheduling requirement to work during plant shutdown is reduced from 2 weeks to 1 week. Members will be permitted to take a layoff and file for unemployment benefits and SUB benefits, or use vacation to cover any weeks in which their services are not needed.
Holidays
Juneteenth has been added as a paid holiday.
DISCIPLINE
The TA contains both positive and negative changes on discipline and grievance procedure.
1. On “discipline”, the TA renames “absences” subject to discipline. They are now “occurrences.” That change broadens what members can be disciplined for.
2. Another important change is that an additional step is before the company can fire you. But the value of this is diminished by a still-existing negative restriction: The length of time following discipline within which a member is liable to advance to the next stage in “occurrences” (events subject to more discipline) is lengthened by any medical leave.
3. It's generally positive that the TA adds an additional step before discharge and makes the last step a two-week rather than a 30-day suspension.
Right to Honor Picket Lines
All members will have the right to respect and not cross picket lines.
We achieved the Members’ Demand to win double-digit wage increases over the life of the agreement. For those at top rate, that is 11% at ratification and 25% over the life of the agreement, with more significant increases for those not at top rate.
Wage increases are retroactive to October 23, 2023, not to the end date of the previous contract.
The COLA formula has been restored to the language that was suspended in 2009. COLA can increase or decrease over the life of the agreement but will not change our base pay until the end of the agreement. There is an adjustment every 3 months to the increase to our hourly rate, with a maximum healthcare diversion of 10 cents per increase. The cumulative adjustment is added to our base wage at the end of the contract, minus the 5-cent float. The Members’ Demand to restore COLA was fulfilled.
We didn't find any language that significantly deviated from what was explained in the Highlighter. Two (2) tiers of Supplemental Employees now exist, Temporary Full time (TFT) and Temporary Part Time (TPT). The company determines the percentage of workers that will be either TPT or TFT. Supplemental Employees with nine months or more of continuous service will be converted to full-time. The union and management must agree in order to extend conversion time. It’s still the case that if a temp is laid off for longer than 30 days it will eat into their continuous service. Supplemental Workers, both TFT and TPT, may choose to temporarily move to other plants in the event that their regular location isn’t scheduling them, and can be temporarily forced in the event that another location needs workers and they are not being scheduled. Toledo Jeep will have roughly 900 supplemental workers converted after ratification, and the rest of the company will have an additional roughly 1,057 converted within 90 days of ratification. All told, including those mentioned, it is expected that over 3,200 workers will be converted in the first year of the agreement.
The wage progression is now 3 years, which is a return to the 90s language on pay progression. The 70% first year, 75% 2nd year, and 85% 3rd year beats the hell out of past giveaways.
Tiers still exist for benefits–more on that soon.
The TA ends the lower-wage tiers at MOPAR facilities, which will all be brought up to the production rate. Those facilities were topped out at a $25 base rate, and they will now jump to a $35.26 base rate.
A new wage tier has been introduced for EV battery facilities, which may top out around $30, or about 75% of the top-rate at other facilities; more on that in the report below.
In the case of an indefinite layoff, all seniority members with 90 days of continuous employment will now be eligible for one year of SUB Pay and one year of TA (Transition Assistance) benefits if placed on an indefinite layoff. This also allows our seniority members to continue healthcare benefits without dental benefits for 24 months while on indefinite layoff. TFTs (Temporary Full Time Supplemental Employees) will receive SUB pay and short work week benefits for temporary lay-offs only. Approximately $18.9 billion in investment was announced, up $9.9 billion from the 2019 agreement. Slightly less than the highlights state. Mopar headcount will not drop below the 2250 currently on roll despite the consolidation of facilities. The list of intended closures also includes 7 other facilities. Beyond Mopar, SHAP and Trenton Engine will remain primary suppliers of production for their respective products and any reduction in volume must occur at secondary locations.
Belvedere employees who have been relocated will be given a one-time option to return to the Illinois labor market area. The Belvedere battery plant will accept transfers (upon the initial 18-month start-up period) of employees dislocated due Cherokee volume reductions and indefinitely laid-off employees company-wide. Future transfers to the facility will fall under contract provisions yet to be finalized. Kokomo’s two future battery facilities will accept transfers for an initial 18-month start-up period. The transfers will be limited to: first HBU employees in Kokomo locations by seniority; then laid-off employees in the labor market area; and subsequently supplemental employees in the labor market area. Employees who had return rights to a labor market area that no longer has an open plant will be given a chance to transfer their rights to a labor market of their choice.
Right to strike over plant closures
The agreement adds the right to strike over plant closures, allocation of investments, and outsourcing of current work. This protects the planned consolidated Mopar facilities, the investments planned for Belvidere, and all other work presented in the highlights.
The Stellantis Battery Letter was recently posted here. Stellantis has committed $9.4 billion to build three new joint venture battery facilities — two in Kokomo and one in Belvidere. While workers at these three facilities are being brought under the National Agreement through a leasing arrangement, enabling transfer rights from other worksites, the contract introduces exceptions that creates a new wage and benefit tier. New workers at these facilities will top out at as low as roughly $30 per hour, while the National Agreement standard tops out at roughly $40 per hour (without COLA). Carve-outs have also been introduced restructuring paid time off provisions, spouse health coverage, as well as eliminating the right to strike.
While bringing these three joint ventures under the National Agreement represents a significant step toward stopping the race to the bottom and providing some job security in the EV transition, the introduction of an EV tier creates new inequality between internal combustion engine and EV workers that will need to be eliminated in future negotiations. Furthermore, there is no general language pertaining to any future battery and joint venture facilities being brought under the National Agreement.
Regarding pensions, our Members’ Demand was to win a defined-benefit pension for all workers, and that “all workers deserve the retirement security UAW members had for generations.” There was a substantial increase in the 401(k) company contribution, from 6.4% to 10%, but no defined-benefit pension was added for post-2007 hires. In sum, the Members’ Demand for defined-benefit pensions for all was not met.
Regarding retiree pay, our Members’ Demand was to “significantly increase retiree pay.” There was an increase of $5 per year of credited service for every future retiree with a pension. There was an increase in the supplement from $1536 to $1686 for those who retire with 30 and out. In contrast to Ford, there doesn’t seem to be an increase in the supplement for workers who retire with fewer than 30 years.
The retirement buyout package was reduced from $60,000 to $50,000, although the buyout packages were extended from select plants to company-wide and offers will be made in 2024 and 2026. In summation, the Members’ Demand for raises for retirees was met for future retirees (who are traditional workers), but it does not recover what was lost considering how long it’s been since pension payments were increased. Current retirees will receive no payment increase, but will receive an annual bonus of $500. The Members’ Demand for current retirees was met, but not by a lot.
Regarding retiree healthcare, the Members’ Demand was to “re-establish retiree medical benefits” for all workers. This was not achieved, no defined retirement healthcare was added for post-2007 hires. In summation, the Members’ Demand for “retiree healthcare for all” was not met.
Additional retirement provisions
There is a commitment to additional funding for the pension fund, estimated contribution of $1 billion. New language to allow members with a same-sex spouse who was previously named a contingent annuitant to change them to “spouse”. There is some new language in the savings plans section, including pertaining to Roth IRA conversion of 401K.
Paid Parental Leave
For the first time in our union’s history, paid leave of up to 80 hours, or two weeks, will be established for birth, legal adoption, and foster placement. Note that paid parental leave will run concurrently with FMLA.
Vacation Scheduling
The maximum vacation shutdown period is 1 week for most plants, 2 weeks for plants that have declared a launch. All full-time members with more than 3 months continuous service will be permitted to take a layoff and file for Unemployment and Supplemental Unemployment Benefits (SUB) beyond the first week.
Eliminating the 3/2/120 schedule
The 3/2/120 schedule has been eliminated. This arrangement allowed the company to achieve 120 hours of production each week by scheduling two 10-hour crews that work Saturday at straight time. Saturdays will now be compensated for all workers at time-and-a-half.
However, members can still be required to work up to 6 days a week. 3/2/120 will be replaced with 10-hour shifts that can still be scheduled to work Monday-Friday and up to two consecutive Saturdays.
FMLA
Members will now be required to use up to 50% of their Paid Absence Allowance time and up to 50% of their annual vacation time concurrently with unpaid FMLA leave.
Holidays
Juneteenth has been added as a paid holiday.
Right to Honor Picket Lines
All members will have the right to respect and not cross picket lines.
Car Leasing Program
The new car-leasing program is slated to begin April 1, 2024. Full-time members are eligible if they: have one (1) year of continuous service who; have completed the company background check, including driving record; and have completed 1,850 hours of work, including time on layoff (calculated at 40 hours per week on layoff).
Stellantis can change or end the program at any time at their sole discretion, but must also change or end the non-UAW-represented side of it as well in the same ways and at the same time. Company must notify the union in advance of any changes, and the union may bargain the effects with the company at that time.
Lump-Sum Bonuses for Performance and Attendance
In the 2019 contract there was a quality bonus and an “upside” bonus for a JD Powers rating, as well as a $500 performance bonus without conditions attached. These bonuses, which totaled a maximum of $1750, were removed.
In their place is a “presence at work” bonus of $1000 if an individual works at least 1850 hours in a year (slightly more than 40 hours over 46 weeks). There is a $500 per plant if absenteeism is reduced by 15% and another $250 if it is brought down to 5%. In total, there is a maximum of $1750, but with a different set of metrics.
Each formula has pros and cons. We should remember that these lump sum bonuses were a ploy to deflect attention away from the loss of a COLA formula, even when the companies were making record profits. Keep in mind that these payments, which do not keep up with inflation, were not in the contract until 2011 and could themselves be called a concessionary substitute for COLA and annual pay increases.
The TA achieves the Members’ Demand to win double-digit wage increases. For those at the top rate, that is 11% at ratification and 25% over the life of the agreement, with more significant increases for those not at top rate.
Wage increases are retroactive to October 23, 2023, not to the end date of the previous contract.
The COLA formula has been restored to the language that was suspended in 2009. Wages can increase or remain stagnant over the life of the agreement, but this formula will not change our base pay until the end of the agreement. There is an adjustment every 3 months to the increase to our hourly rate, with a maximum healthcare diversion of 10 cents per increase. The cumulative adjustment is added to our base wage at the end of the contract, minus the 5-cent float. The Members’ Demand to restore COLA was fulfilled.
Temporary employees will receive a gross wage increase of $4.33 per hour, with a max rate of $21 an hour, “FULL-TIME” temps won the rights to a signing bonus, full healthcare, personal savings plan, profit sharing, SUB pay, tuition assistance and legal services. “PART-TIME” temps will not be eligible for SUB pay or legal services. Both part time and full time temps are now eligible for bereavement and jury duty pay. All temps are excluded from life and disability benefit plan, pension plan and dependent care reimbursement.
Upon ratification all “FULL-TIME” temporary employees will be made permanent, following this all future “FULL-TIME” temporary employees will transition into permanent employees after 9 months of CONTINUOUS service. Any period of 60 days or more of not working will break this time and the clock will restart. This is an improvement from the 30 days outlined in the 2019 agreement. Seniority will be back dated 90 days from the day of conversion. An Allowance calculation with oversight from a joint committee will determine how many temps the company can use at any given time.
The wage progression is now 3 years, down from 8 years. The current progression is: 70% during the 1st year, 75% 2nd year, 85% 3rd year, and top rate during the 4th year and beyond. Each bump in the scale will be awarded by “52 working weeks'.' Tiers still exist for benefits — more on that below.
The TA ends the lower wage tiers at GM CCA, GMCH, Subsystems and Brownstown facilities, which will all be brought up to the production rate. Those facilities were topped out between a $22.50 and $25 base rate, and they will now jump to a $35.58 base rate.
A new wage tier has been introduced for EV battery facilities, which may be negotiated as low as 75% of the top rate; more on that in the report below.
In the case of an indefinite layoff, all full-time members (including full-time temps and in progression) with 3 months of continuous employment will now be eligible for one year of SUB Pay and one year of TAP (Transition Assistance Plan) benefits if placed on an indefinite layoff. This also allows our members to continue healthcare benefits for 24 months while on indefinite layoff. SUB pay is in effect for the duration of the layoff. In case of many layoffs, If SUB expenses exceed the SUB account the UAW and GM will reduce the benefit jointly. The SUB cap for GM is 1.936 billion over the life of the agreement, if that is spent then we would have a reduced amount.
The GM contract clearly gives the UAW the right to strike over plant closures. The language in the contract says the company will not close, idle, spin off or otherwise dispose of a bargaining unit. The UAW can exercise this right after bargaining over the issue at hand. GMCH is not included in this provision.
The joint venture, Ultium Cells, in Lordstown, OH will be brought under the National Agreement through a leasing arrangement, but with exceptions based on the locally negotiated agreement, which introduces a new EV wage tier. Citing "operational flexibility," Local wages may be negotiated as low as 75% the maximum rate for production and skilled trades as negotiated in the National Agreement.
While bringing Ultium Cells under the National Agreement represents a significant step toward stopping the race to the bottom and providing some job security in the EV transition, the introduction of an EV tier creates new inequality between internal combustion engine and EV workers that will need to be eliminated in future negotiations.
The National Agreement will also apply to future UC facilities, including the plants being built in Spring Hills, TN and Lansing, MI, provided that UAW recognition is reached. Presumably, the same locally negotiated exceptions will apply, including the wage tier allowing for wages to be as low as 75% of the top rate. Rights will be given to certain employees to transfer between GM plants and UAW organized UC facilities.
Regarding pensions for post-2007 hires, our Members’ Demand was to win a defined-benefit pension for all workers, and that “all workers deserve the retirement security UAW members had for generations.” There was a substantial increase in the 401(k) company contribution, from 6.4% to 10%, but no defined-benefit pension was added for post-2007 hires. In sum, the Members’ Demand for defined-benefit pensions for all was not met.
Regarding retiree pay, our Members’ Demand was to “significantly increase retiree pay.” There was an increase of $5 per year of credited service for every future retiree with a pension. There was an increase in the supplement from $1536 to $1686 for those who retire with 30 and out. The retirement buyout package is $50,000 and will be offered three times over the course of the agreement, with timing, scope, and size of the offering to be determined. In summation, the Members’ Demand for raises for retirees was met for future retirees (who are traditional workers), but it does not recover what was lost considering how long it’s been since pension payments were increased. Current retirees will receive no payment increase, but will receive an annual bonus of $500. The Members’ Demand for current retirees was met, but not by a lot.
Regarding retiree healthcare, the Members’ Demand was to “re-establish retiree medical benefits” for all workers. This was not achieved, no defined retirement healthcare was added for post-2007 hires. In summation, the Members’ Demand for “retiree healthcare for all” was not met.
Establishment of paid time off the job for birth, legal adoption, placement of a child under the age of 18 for foster care in the employee’s home for seniority, full-time members. Up to 80 hours, or two weeks, paid leave will be granted. Although this benefit can only be used concurrently with FMLA. Overall this is an improvement.
Employees hired after October 16, 2007 are now eligible for full vacation time, up to 200 from 160 hours. The company has agreed to decide on all vacation applications within 3 days, except during the February Vacation Application Period.
The new agreement adds the Juneteenth holiday as a paid holiday.
Right to Honor Picket Lines
All members will have the right to respect and not cross picket lines.
Discipline
While the majority of the TA remains the same concerning the grievance procedure and discipline, there are a few notable changes:
Doc. 8 The special procedure for attendance saw one minor improvement. For steps 4 and 5 members will no longer be required to have their VR days pre approved. This is mentioned in the highlights.
Doc. 99 The language of this doc has significantly changed. A particularly strong line from the 2019 agreement that states “All employees are entitled to a work environment in which words and actions do not have even the appearance of disrespect” has been deleted. The new language also de-emphasises sexual harassment and instead refers to just harrassment and discrimination in general. Genetic information has been added as a protected category in this agreement. This document appears to have been weakened and made less specific.
Doc. 143 This Doc modifies paragraph 76a, stating that once an investigation involving suspension takes an unreasonable amount of time your local can pass it on to the national parties for resolution.