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up front Saturday 14 September 2019
Strike looms at GM as UAW extends Ford, Fiat Chrysler pacts

Continued from Front from trying to approach — The companies want to
him to ask questions. Jones close the labor cost gap
It’s possible that the four- has not been charged in with workers at plants run
year GM contract also the case. by foreign automakers.
could be extended or a Union spokesman Brian GM’s gap is the largest at
deal could be reached, but Rothenberg said Friday $13 per hour, followed by
it’s more likely that 49,200 night that Jones remains Ford at $11 and Fiat Chrys-
UAW members could walk in office, as does Pearson. ler at $5, according to fig-
out of GM plants as early “They didn’t make any ures from the Center for Au-
as Sunday because union changes,” he said. tomotive Research, an in-
and company demands In a 40-page criminal com- dustry think tank. GM pays
are so far apart. plaint, the government al- $63 per hour in wages and
Picket line schedules al- leged that over $600,000 in benefits compared with
ready have been posted UAW money was spent by $50 at the foreign-owned
near the entrance to one union officials at businesses factories.
local UAW office in Detroit. in the Palm Beach, Califor- — Union members have
Art Wheaton, an auto in- nia, area, including at res- great health insurance United Auto Workers President Gary Jones, center, whose home
was searched by FBI agents Wednesday as part of a corruption
dustry expert at the Worker taurants, a golf resort, cigar plans but workers pay probe, walks with UAW members during the first part of the
Institute at Cornell Univer- shop and rental properties, about 4% of the cost. Em- annual Labor Day parade in downtown Detroit on Monday,
sity, expects the GM con- between 2014 and 2017. ployees of large firms na- Sept. 2, 2019.
tract to be extended for a The union said the govern- tionwide pay about 34%, Associated Press
time, but he says the gulf ment has misconstrued according to the Kaiser since a short one against much from the company
between both sides is wide. facts and said the alle- Family Foundation. The GM in 2007. as it could, Wheaton said.
“GM is looking through the gations are not proof of companies would like to The union may have to Some workers, he said, mis-
windshield ahead, and it wrongdoing. “Regardless, cut costs. If there is a strike, strike at least for a while to trust union leaders due to
looks like nothing but land we will not let this distract it would be the union’s first show workers that it got as the corruption scandal.q
mines,” he said, citing a us from the critical nego-
possible recession, trade tiations under way with GM
disputes and the expense to gain better wages and
of developing electric and benefits,” Rothenberg said.
autonomous vehicles. “I At UAW Local 22 in Detroit,
think there’s really going picket line schedules for
to be a big problem down three days were posted on
the road in matching the the lobby windows. The lo-
expectations of the union cal represents workers at
and the willingness of Gen- a plant that straddles the
eral Motors to be able to border between Detroit
give the membership what and the hamlet of Ham-
it wants.” tramck.
Plant-level union leaders The 24-hour schedules
from all over the country don’t list any date to start
will be in Detroit on Sun- but a separate schedule
day to talk about the next has a group reporting to
steps, and after that, the the union hall at 6 a.m. on
union likely will make an Sunday. The factory, which
announcement. makes the Chevrolet Im-
But leaders are likely to pala and Cadillac CT6, is
face questions about an one of four that GM plans
expanding federal cor- to close.
ruption probe that snared Here are the main areas of
a top official on Thursday. disagreement:
Vance Pearson, head of a — GM is making big money,
regional office based near $8 billion last year alone,
St. Louis, was charged with and workers want a big-
corruption in an alleged ger slice. The union wants
scheme to embezzle union annual pay raises to guard
money and spend cash on against an economic
premium booze, golf clubs, downturn, but the compa-
cigars and swanky stays ny wants to pay lump sums
in California. It’s the same tied to earnings. Automak-
region that UAW President ers don’t want higher fixed
Gary Jones led before tak- costs.
ing the union’s top office — The union also wants
last year. new products for four fac-
Jones and other union ex- tories GM wants to close.
ecutives met privately at The factory plans have
a hotel at Detroit Metro- irked some workers, al-
politan Airport on Friday. though most those who
After the meeting broke were laid off will get jobs
up, Jones’ driver and oth- at other GM factories. GM
ers physically blocked an currently has too much U.S.
Associated Press reporter factory capacity.