Labor Unions: One Yeah, One Nay, One Maybe
The early returns were unsettling. As members of the United Auto Workers voted last week on a new three-year contract with General Motors, word leaked out that at least 22 of the union's 149 locals had turned down the agreement. Many workers were dissatisfied with the proposed wage hike and lump-sum payments that would average 2.25% annually. But after U.A.W. President Owen Bieber warned that rejection would mean an immediate nationwide strike the vote totals began to shift in favor of the contract. At week's end union officials predicted approval by a 55% to 60% majority
Even so, GM may have little time to celebrate. The Canadian branch of the U.A.W. has turned down a contract similar to the U.S agreement. Unless the company sweetens its offer, 36,000 workers may strike this week at GM's nine Canadian factories.
Meanwhile, representatives of the U.A.W. and Ford worked all week toward reaching a contract settlement for that company's U.S. workers, patterned after the GM pact. Though apparently near agreement, the negotiators adjourned the talks on Friday night so they could take care of other important business-rooting for the Detroit Tigers in the World Series.
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