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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.

2016 Chevy Malibu exhaustively tested with four decades of data

Chevy is preparing to unveil its new Malibu sedan at the upcoming New York Auto Show next month. But when it does, it's not like it will have appeared overnight. The development of any new vehicle – especially one as widely produced by a major automaker as the Malibu – involves rigorous and relentlessly punishing tests. In the Malibu's case, that meant 1.5 million miles of driving from the scorching heat of Arizona in July to the frigid cold of northern Canada in January and everything in between. The Bowtie brand also says it incorporated four decades' worth of data taken from vehicles driving in locations around the world since 1972 in order to make the Malibu the best it could be. We'll have to wait to find out the results of all that exhaustive testing, but you can catch a sneak peek at the new sedan in the video above. Four Decades of Data Used to Test 2016 Chevrolet Malibu Recorded customer use drives durability testing for next-generation midsize sedan 2015-03-11 DETROIT – Data collected over decades from across the globe is helping ensure the 2016 Chevrolet Malibu can handle the world's worst roads even if the all-new midsize sedan never drives on them. Data collection boxes are placed in cars in real-world driving conditions around the world. Since 1972, these devices have accurately recorded the harshness and frequency of every jounce, bump and shudder inflicted on the car on roads in the U.S., Russia, Saudi Arabia and developing markets. "Although most Malibu owners will never put their car through similar abuse, we test all new vehicles in extreme climates, inclement weather and on punishing road surfaces," said Dan Devine, Malibu validation engineer. "The 2016 Malibu is definitely up to these challenges." Tests like these ensured the current generation Malibu was dependable and durable, two qualities that in turn helped Malibu stand out from its rivals in important quality surveys, such as J.D. Power's Initial Quality Study and Vehicle Dependability Study. General Motors engineers analyze the data to calculate the precise amount of damage potholes and other hazards create over 150,000 miles. Then the conditions are replicated at GM's Milford Proving Ground in Michigan on three unique road courses, each riddled with simulated potholes of increasing severity. Engineers run preproduction cars through the course up to hundreds of times.

GM, UAW poaching Nissan workers in Tennessee

General Motors and the United Auto Workers are going on a recruitment drive at the Spring Hill factory in Tennessee, and they're hoping to poach some skilled workers from Nissan's nearby plant in Smyrna, TN. The General and the union even bought a billboard advertising for industrial electricians near the Japanese automaker's facility, according to the Daily News Journal. The reason for the billboard was simple. "GM was short of electricians," said Tim Stannard, the president of the UAW local at Spring Hill, to the Daily News Journal. The factory currently builds the Chevrolet Equinox but has a contract to assemble the next generation of Ecotec engines and the Cadillac XT5, which replaces the SRX. Thanks to the $185-million deal, employment there is expected to double by May 2016, according to Stannard, with roughly 1,800 additional union jobs. Beyond just several billboards, GM has job postings online for the Spring Hill plant looking for workers with specific skills. There has already been some interest in the positions among Nissan employees, Stannard indicated. According to a recent study by the Center for Automotive Research, the average GM worker currently makes $58 an hour, including benefits. Comparatively, Nissan pays an average of $42 an hour with benefits. The General's number could change in the coming weeks because its contract with the UAW is about to expire, and higher wages are among the major negotiating points.