Buckle Up: The UAW Contract Talks Are Going to Be a Bear

Published: July 18, 2019, 8 p.m.

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\\xa0Yesterday marked the start of negotiation talks between the United Autoworkers Union \\u2013 or UAW \\u2013 and the Big 3 automakers \\u2013 GM, Ford and Fiat Chrysler \\u2026 and according to industry experts, we shouldn\\u2019t expect this to be easy.

\\xa0Not that you did.

\\xa0According to Bloomberg auto executives may be in no mood to make concessions considering the auto market\\u2019s shrinking sales at a time when every major company is investing big bucks in the development of both electrics and autonomous vehicles.

\\xa0And if that didn\\u2019t make things awkward enough, the UAW is said to be already riled after GM\\u2019s series of plant closures this year.\\xa0

\\xa0So, what will the major sticking points be? Bloomberg predicts one will be healthcare. According to the report, UAW workers contribute just 3 percent annually to their health care costs \\u2013 compared with 29 percent for the average worker with an employer-sponsored plan. That gives them some of the best healthcare benefits in the nation, but they\\u2019re weighing heavily on automakers like Ford, who says this line item will cost them more than a billion dollars next year.

\\xa0The other big contentious issues will likely be job security, especially after this year\\u2019s bloodbath at GM left union workers in the lurch, as well the automakers\\u2019 use of temporary workers \\u2013 a strategy that offers the car companies cost savings and flexibility, but helps promote what UAW President Gary Jones calls \\u201ca race to the bottom\\u201d \\u2013 one he says the union will halt with this year\\u2019s talks.

\\xa0But the last point that could cause these four-year contract talks to hit some serious snags has to do with the bribery scandal that plagued both the UAW and Fiat-Chrysler with indictments over the past few years. Neither party was considered a victim, but there was certainly damage done with Fiat Chrysler funneling millions of dollars to UAW execs in order to keep them \\u201cfat, dumb and happy.\\u201d Many believe that the scheme had tangible impact on the last round of negotiations in 2015. And while the union blamed its role on a few bad apples, this year\\u2019s contract talks could be a bit more hard fought to prove that their intentions are only to bargain on behalf of the workers.

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