GM, UAW duel over temp workers, new-hire wages

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GM, UAW duel over temp workers, new-hire wages
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The strike has entered its third week, with no end in sight.

General Motors Co. and the striking United Auto Workers union are dueling over two main issues: how fast to move newer hires up to the top wage and how soon temporary workers should qualify for full employment.

The UAW is working to lock in a new four-year labor contact for tens of thousands of hourly workers at GM before turning its full attention to negotiations with Ford and Fiat Chrysler. Contract talks, which continued Friday, entered a critical phase last week as UAW and GM bargainers moved onto bigger economic issues, such as wages and benefits.

The Detroit auto maker has roughly 3,000 temporary workers, or about 7% of its total workforce, a number that fluctuates based on production schedules. These employees are also represented by the UAW. Health care, a major sticking point heading into talks, is largely settled, according to people familiar with the negotiations. In an early offer, GM proposed having UAW workers pay up to 15% of health-care costs out of pocket but the union quickly shot it down and the out-of-pocket obligation will remain unchanged at around 3%, the people said.

GM, Ford and Fiat Chrysler have relied on new hires earning less than veteran workers as a way to hold down their labor costs. But the eight-year timetable, implemented in the union's 2015 contract, has been a source of contention and workers want to see it shortened or eliminated completely.

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