On July 15, the United Auto Workers formally began talks with Ford, General Motors and Fiat Chrysler on a new four-year contract. It was all smiles and handshakes to start, but negotiations will surely get testy before the current contract expires Sept. 14.
The UAW is pushing for wage increases instead of profit-sharing or bonuses. The Detroit Three are advocating the opposite. The UAW wants fewer temporary workers; the automakers want more. The union wants job security and assurances that new products will be made in the U.S.; the automakers want “flexibility” to prepare for a future of autonomous and electric vehicles. The UAW wants to shorten the eight-year timeline to bring former “tier-two” workers to the top of the pay scale. The Detroit Three want to keep wage and health care costs in check.