Analysis: Details About the UAW/GM Tentative Agreement Spread Across the Web

Ever since the UAW and GM came to a Tentative agreement on Wednesday morning, and the UAW workers put down their picket signs, there have been questions raised on what contracts will actually say. Some of the details are sketchy and not very specific but the ones that are explained , if they are true, might not be the best for the UAW in the years to come. One of the most common details that we have been hearing about is the VEBA and we all know about the questions raised on this specific subject. In addition to VEBA, lets talk about the other specifics that not too many of us are addressing at this time, and what it will mean for the UAW workers now and in the years to come.

GM would pay the union cents on the dollar to take over $50 billion in retiree health obligations. The GM infusion will go into a voluntary employees' beneficiary association, or VEBA.

(GM is a big corporation, if they can't handle this obligation, what makes them think the UAW can? And were is the money going to come from to pay the people whom are going to handle and maintain the VEBA?)

A two-tier wage structure for non-manufacturing jobs: This would allow GM to pay wages as low as $12 to $15 a hour for jobs that do not have a direct link in making the vehicles, such as housekeeping, janitorial etc.

(So now we are letting these new and underpaid workers in. As a result, in the future negotiations, they don't care if the other workers rates go down. Which then they are more than likely to vote "yes" to a pay decrease, because it would not directly effect their pay.)

Temporary workers: GM wants to make 4,100 temporary workers now on the payroll permanent employees, which is a good thing, but they too will be paid at a lower rate.

(There again they now have the ball in their court, this gives them an advantage on getting pay decreases the next contract because these employees are already at a lower rate. 4,100 "yes" votes in their court.)

A special attrition program will clear out senior workers and make room for the new workers.

(Need I say more, the number keeps rising for these votes in GM's favor next contract due to new hires rolling in.)

Pay Raises in the next 4 years? There will not be any. It is unclear if they are going to lose the Cost of living or if the COLA just won't be adjusted each year. If they lose the COLA it will mean a pay loss of around $2.00 an hour. It's unclear, to me, how much COLA goes up every year but if COLA remains on their check they will not see that raise for the next four years.

Signing bonuses: $3,000 would be issued to the UAW members for the ratification of this contract. (Now listen folks, $3,000 dollars sounds like a lot of money but really do you think it will be worth it if you have to take a significant pay cut in the next 4 years?

Lump-sum payments roughly equal to 3 %, 4 %, and 3 % of their annual pay in the last three years of the contract.

(Okay, here is where it sounds good, but do the math people, making about $60,000 a year, 3% lump sum payment is only $1,800. Does that make up for your cost of living losses? Or does it make up for your future job security?)

Okay, now I have addressed some of the issues that are floating around the web about the Tentative agreement between the UAW and General Motors. All of this article is speculation and we have no proof yet of what the real contract will say. Just remember that the future jobs of the UAW are reflected in this contract and if you are part of the UAW please take a look at the "big picture" and not just what is in front of you now. Think of your job in 4 years and where you will be, and Vote on this contract wisely.

Good luck to all of the UAW workers in the United States. And please remember to support your American based manufactures.