Local opinion: GM negotiators face 5 key issues in settling strike

Sep. 27--UAW Local 1853 members missed their first full check since the start of the strike against General Motors on Friday, but their health-insurance benefits were restored Thursday morning.

Both events were a reminder of the workers' decision to walk out and what's at stake during the strike.

UAW members will be receiving $250 a week from the union, with some getting their first check Sunday and others Monday.

The difference between strike pay and a weekly paycheck ranges up to $1,000 in some cases. If strikers have not saved their money in preparation for the negotiations, they might struggle until there's an agreement.

The issue related to health benefits was overblown, in my opinion. GM cut them off in a negotiating ploy against the union, indicating it thought the strike would be a drawn-out affair. It told the union it would reverse the decision Thursday after the UAW deflated the issue by covering insurance costs.

The automaker also endured harsh criticism on social media about cutting off the benefits.

The question now becomes whether the strike was worth it and how much longer it will last. Should workers have stayed on the job while negotiations went on behind the scenes? Or was the walkout worth the short-term pain and the time spent on the picket line?

From my vantage point, the strike was justifiable. The gulf between the company and UAW was wide on major issues early on.

After a settlement, workers likely will receive a ratification bonus, which will make up for wages they lost. On the opening night of bargaining, GM revealed it was offering an $8,000 ratification bonus.

More than 46,000 UAW members -- including more than 3,600 in Spring Hill -- have been on strike since Sept. 16 at GM plants across the country. It marks the first national strike by the UAW against GM since 2007, when the union shut company plants for two days.

From what I am seeing, GM and the UAW remain far apart. GM spokesperson Brian Rothenberg, who said, "On the major issues, we still have work to do."

UAW Vice President Terry Dittes wrote to members that all unsettled proposals at the "Main Table and have been presented to General Motors and we are awaiting their responses." The "back and forth will continue until negotiations are complete," he added.

As negotiators move toward common ground, it's important to know the biggest issues that need resolving. The top issues were not picketers blocking traffic or health insurance during the strike.

The top five, in my opinion:

1. Wages

The UAW's concessions during GM's bankruptcy saved the company.

GM has posted a $27.5 billion profit in the last four years, with workers earning more than $40,000 on bonus money as negotiated in the previous collective-bargaining agreement.

Before the strike, GM offered to raise base pay twice in the next four years by 2%. The other two years, workers would have been given a lump-sum bonus, equal to a 2% raise that year.

Workers believe they deserve more, considering the concessions in 2010 that cut the top production worker's wages by 10% and considering that CEO Mary Barra made $21.87 million last year.

"We're proud that GM has been a part of the backbone of middle-class America," GM spokesman David Barnas said in a statement. "We want to continue providing jobs that support families and communities -- but can only do so if we remain competitive."

A 5% increase immediately likely would satisfy the union, with 2% for the last three years of the deal.

The union would like pay raises for entry-level workers. They start at less than $20 an hour, and to get them to the peak wage of almost $30 an hour in three or four years, instead of eight years.

2. Health care

GM wants to raise the amount employees pay for health-insurance coverage. UAW members pay 3% out of pocket. The company would like to see employees shoulder about 15% of the cost.

Negotiations seemed to have convinced GM to fold on the increase, but nothing is final until ratification.

A dramatic rise would be a deal breaker for the UAW.

3. Temporary workers

The union would like to make all current temporaries permanent and have a pathway to a permanent job for all future temporary hires

Temporary workers account for about 4,100 GM workers at the end of 2018, including about 350 in Spring Hill. Temps make up 7-10% of the total workforce.

4. Executive compensation

Rank-and-file workers rail about Barra's compensation, but a great CEO is worth her weight in gold, as others have said before me.

GM's comeback was the result of sacrifices from its workers, but pivotal business decisions, including the emphasis on the manufacturing of SUVs, trucks and electric vehicles and reinvestment in plants such as Spring Hill, have paid off.

The company would not have made record profits without making some cuts.

Barra presided over the November 2018 announcement that GM was cutting 15% of its salaried workforce and idling five North America plants. That did not improve her popularity rating.

5. Returning jobs from Mexico

With its profitability, does GM really need to ship jobs off to Mexico?

It's obvious vehicles need to be made in China for the Chinese market.

But should any products for the U.S. market be produced across the border?

GM reportedly is offering to build electric pickup trucks in Detroit and batteries for electric vehicles in Lordstown, Ohio, as part of the bargaining.

Unfortunately, GM wants to pay those workers about $17 an hour -- far less than the average wage at other GM sites -- when it decides to reopen the plants, which is unclear.

Negotiations might last another two weeks. The top bargainers on each side have taken over and should be able to cut through the contentious issues.

The workers will have the final say, when there is a breakthrough, with a ratification vote.

Issues remain contentious and sore among average workers. How long can they wait before voting to go back to work?

After missing one paycheck, the resolve gets tougher.

I was making an early Nashville airport run last week and saw strikers on GM Spring Hill's south entrance bridge at 3:30 a.m. That's what I call dedication, especially after the company temporarily took away their health benefits and asked for a restraining order to prevent workers from blocking access to the plant.

GM should not doubt their resolve or solidarity at this point.

James Bennett is editor of The Daily Herald. His column mixes exclusive reporting, old-school storytelling and original commentary. He's been a Tennessee Press Association first-place winner for editorial writing, news reporting, education reporting and public service since joining the paper in 2014. He's also been a Best of GateHouse winner for page design and sports writing. Contact him at jbennett@c-dh.net.

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