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The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.

Meet Alex Archer, the engineer behind GM's power-sliding center console

In 2009, a GM manager complained to a 59-year-old GM technician about the hassle of retrieving items from a pickup truck bed after driving shifted the cargo. In two days, the tech had come up with the ideas that, ten years later, would debut as the MultiPro tailgate. The engineering teams kept the tailgate secret in part by hiding mock-ups in a locked storage closet in GM's Vehicle Engineering Center in Warren Michigan for two years. A piece in the Detroit Free Press reveals that another storage closet in Warren would play the same role in a different cloak-and-dagger operation, this time for the power-sliding center console in GM's new full-sized SUVs. During a meeting in early 2017, bosses gave the job of the console's creation to 24-year-old design release engineer Alex Archer, just two years out of Stanford University with a degree in engineering and product design.  This time, the catalyst for the feature was an internal GM think tank called co:lab, where employees suggest ideas. Execs gave Archer the task because "They needed someone willing to ask a lot of questions," her 36-month mandate to produce a six-way console that could be a standard cubby or a gaping maw able to swallow four gallon jugs or hide a secret compartment. Clearly, she succeeded. It took Archer and the team nine months to devise a prototype, another six months to get the green light for production. As with the tailgate, the team working on the console grew to include designers, production engineers, and suppliers. Archer, now 26, shepherded the process, and her name is on the patent. "It took a ton of people, I'm just somebody who stuck with it the whole time," she said. GM like her work well enough to produce the "Day in the Life" segment above, five months before the world would hear about the console. Archer's path to engineering was as unlikely as getting the job for the console. She had entered Stanford with plans to be a doctor. But an innovation class during her freshman year, and a sophomore summer spent helping her grandfather rebuild a 1937 MG engine recharted her course. Her grandfather told her, "You know, you could be an engineer for a car company." Consumer reaction to Archer's work won't be far off, the SUVs slated to hit dealerships soon. Meanwhile, she's busy on something that could be just as intense as the console: Restoring a 1955 Packard Clipper in her garage. Head to Freep to check out the story of Archer and the console. Related Video:

GM laying off more than 4,000 workers Monday morning

According to reports from Automotive News, The Detroit News, and CNN, General Motors plans to begin laying off more than 4,000 salaried workers starting Monday morning. In a statement to AN, a spokesperson for the automaker said, "We are not confirming timing. Our employees are our priority. We will communicate with them first." We've been expecting layoffs at General Motors since November, 2018. At the time, the Detroit-based automaker announced it would seek to shed 8,100 salaried employees, shut down five assembly plants in North America, and kill off several slow-selling models. One month earlier, GM offered buyout packages to 18,000 workers and said it would seek to cut its global workforce by 25 percent. A spokesperson said at the time the moves were "proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance." The cost-cutting moves are expected to save GM up to $2.5 billion in 2019 and as much as $6 billion by 2020. David Kudla, CEO and chief investment strategist of Mainstay Capital Management, referred to the impending culling as "Black Monday" and told The Detroit News that the layoffs would begin around 7:30 a.m. and continue in waves throughout the coming days and weeks. GM plans to deliver on its fourth-quarter and full-year 2018 earnings report on Wednesday. President Donald Trump plans to deliver the annual State of the Union address a day earlier on Tuesday. We expect to hear plenty more from both sides over the next several days.