1. What Grips My Field?
Steven Murphy
October 8, 2015

2. Introduction
As an aspiring Global Human Resources & Labor Relations professional getting ready to begin a career with General Motors, and having been involved with Local UAW-GM Negotiations, this topic is fascinating to me.
Background on UAW Negotiations
2007 and 2011 Agreement
Status of Current UAW Negotiations
UAW-FCA Agreement
What’s At Stake in the 2015 UAW Negotiations?

3. A Glimpse Inside of UAW Negotiations

4. Background of Previous UAW Negotiations
Currently approximately 140,000 UAW members in the “Big Three” represented by UAW and Company Management.
Job Security
The “Big Three” all have to stay competitive, but they also want to treat their employees well.
Ford will move production of Ford Focus out of the country in 2018 and cease production at its Wayne Assembly Plant to take advantage of Mexico’s lower labor rates and free trade deals with other countries.
UAW Negotiations occur once every four years.
National Agreement & Local Agreement

5. Background of Previous UAW Negotiations (Continued)
2007 = Establishment of a two-tier wage structure.
Employees hired before 2007 = $28.50 for assembly line work.
Employees hired after 2007 = $15.78 for assembly line work.
2011 = “Big Three” lifted UAW membership pay.
Employees hired before 2007 = $28.50 for assembly line work and $33 for skilled trade jobs.
Employees after 2007 = $19.28 for assembly line work.

6. Class Discussion Question
If you were a UAW employee, which issues do you think you would be most passionate about during the 2015 UAW Negotiations? Why?
For Example: Increasing wages, improving healthcare, creating a more flexible work schedule, etc.

7. Why Did the UAW Start Negotiations with FCA?
FCA is currently the smallest and least profitable of the “Big Three.”
Easiest to begin negotiations with the company that has least amount of leverage.
FCA has the highest percentage of Tier-Two employees.
FCA New Hires = 45% of their UAW membership.
General Motors & Ford = 25% of their UAW membership.
More labor costs for General Motors & Ford.
UAW recognizes that FCA is in a different business position than General Motors & Ford.
By targeting FCA first, the UAW is hopeful to strike a deal that serves as a template for agreements with General Motors & Ford.

8. 2015 UAW Negotiations
General Motors was the first of the “Big Three” to begin negotiations with the UAW on July 13th.
Car sales in the United States are on pace to exceed 17 million this year and the bankruptcies and bailouts of General Motors and Chrysler are in the past.
17 million car sales in the United States is the most seen since 2001.
The “Big Three” have added 15,750 UAW jobs, which is a 13% increase since the 2009 financial crisis.
UAW President chose Fiat Chrysler Automotive (FCA) as its target company on September 13th.
FCA and UAW reached a Tentative Agreement on September 15th.

9. 2015 UAW Negotiations (Continued)
The UAW rejected the Tentative Agreement proposed by UAW-FCA Management on October 1st in a 65% to 35% vote.
UAW Negotiators failed to understand hostility of entry-level workers, who chose to join forces with higher paid veterans to defeat the proposed agreement rather than take a substantial pay raise.
UAW President Dennis Williams told local elected union officials that he’ll contact FCA to request a meeting to discuss a list of issues identified as “stumbling blocks” by UAW employees.
After Williams and FCA executives meet, the UAW plans to reconvene its council meeting, however, no new date has been selected.

10. Why Did the UAW-FCA Tentative Agreement Get Rejected By UAW Membership?
The 25% cap disappeared.
Workers believe that FCA should honor this cap on entry-level workers, which would automatically boost their pay from $19.28 an hour to $28 an hour.
Anxiety over FCA’s product plan.
FCA has promised to invest $5.3 billion over the next four years at plants in the U.S., but what that includes, as well as where are largely in question.
Confusion over health care.
A summary of the proposed contract says, “a Health Care Co-Op will be established,” which is very ambiguous.
Anxiety and broken promises.
Common Theme: Belief that past promises have been broken & information about the new contract doesn’t adequately address questions/concerns.

11. What’s At Stake in the 2015 UAW Negotiations?
For the first time since 2007, the UAW has the right to strike.
This set of negotiations comes as a national debate over income inequality and declining wages for most manufacturing workers.
Brings more discussion about the working, middle class to center stage.
First UAW contract negotiated since Governor Snyder passed right-to-work legislation.
Right-to-work legislation passed in Indiana during 2012.
Allows dissatisfied UAW members to opt out of paying union dues.
Continuing interest from FCA to merge with another automaker to help spread the cost of capital and technology.

12. Summary
There’s a lot at stake for UAW Members, as well as the “Big Three.”
Competition in the industry is continuing to increase, which means that there’s a desire to reduce labor costs.
UAW Membership seeks to decrease the gap between new hires and veteran employees.
A ratified agreement between the UAW and FCA could help or hurt Ford and General Motors financially, as they will have to follow suit.
Will the “Big Three” and UAW be able to better compete with automotive companies such as Toyota, Honda and Hyundai who aren’t unionized?

13. Bible Verse in Relation to UAW Negotiations
“... so that there should be no division in the body, but that its parts should have equal concern for each other.” - 1 Corinthians 12:25 (NIV)

14. Any Questions?

15. Works Cited
Durbin, Dee-Ann. "UAW Chooses Fiat Chrysler as Target in Contract Talks With Detroit Automakers." U.S. News & World Report. Associated Press, 13 Sept Web. 04 Oct
Gardner, Greg. "Top UAW, GM Officials Pledge Partnership, Problem-Solving Spirit." Detroit Free Press. N.p., 13 July Web. 04 Oct
Gardner, Greg, and Brent Snavely. "UAW, FCA Officials Miscalculated Young Worker Angst." Detroit Free Press. N.p., 04 Oct Web. 04 Oct
Snavely, Brent. "4 Reasons Why UAW Members Are Voting Against FCA Deal." Detroit Free Press. N.p., 30 Sept Web. 04 Oct
Snavely, Brent. "UAW Confirms Rejection of Proposed Fiat Chrysler Contract." Detroit Free Press. N.p., 01 Oct Web. 04 Oct
Vlasic, Bill. "G.M. Is First of Big 3 to Open Contract Talks With the U.A.W." The New York Times. The New York Times, 13 July Web. 04 Oct
"Will Big 3 Automakers Flinch In Union Negotiations? - Newsy." YouTube. YouTube, n.d. Web. 04 Oct