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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.

LG Chem's troubled Chevy Volt battery plant hiring once again

The Michigan battery plant known for paying its workers to do nothing has turned things around and is now hiring more workers, specifically to do something. South Korea-based LG Chem, which runs the factory to supply the Chevrolet Volt extended-range plug-in vehicle with its lithium-ion batteries, held a job fair recently to bring on 40 new employees in order to meet higher battery demand, according to WZZM, the ABC affiliate for Grand Rapids, MI. The LG Chem factory is in Holland, MI, about 30 miles west of Grand Rapids, and it made its first batteries last year. Prior to that, though, the factory gained notoriety after a US Department of Energy (DOE) probe found that workers there were getting paid to do, well, nothing. That's because demand for the battery packs was so low that it cost less for the plant to sit idle. The DOE was conducting the probe because of its financial grant to LG Chem. But that was then and today is today. LG Chem is looking to ramp up production in advance of the second-generation Volt. That 2016 model-year version is said to have a longer all-electric range and better performance and will ride on a new chassis, but few official details have surfaced. We will know more when we get our first look at the car at the Detroit Auto Show in January.

Next-gen Chevy Camaro ZL1 teases big changes under its camo

With work complete on the lighter, stiffer 2016 Camaro, it's time for Chevrolet's engineers to really start having fun by developing the next, ZL1 version. Here it is for the first time. Unfortunately, the muscle car is still wearing quite a bit of camouflage, but the concealment isn't enough to hide some of the meaner model's more obvious performance tweaks. Starting from the front, this Camaro now wears a much more aggressive front fascia with bigger air inlets. Managing the airflow around the engine bay is clearly a big deal because another photo reveals a fairly large extractor in the hood, as well. Moving down the profile, the lower side sills and orientation of the camo suggest some blistered fenders in the back to cover wider rubber, and at the very rear a much larger wing further suggests the need to keep things planted to the road. Check out the comparison images in the gallery for a better look at the tweaks. What will power the next ZL1 is still entirely a mystery, although sticking with a supercharged 6.2-liter V8 could be a possibility, especially if you take the big extractor in the hood as a hint. Whereas the current ZL1 makes 580 horsepower and 556 pound-feet of torque, the LT4 in the latest Cadillac CTS-V pumps out 640 hp and 630 lb-ft. Combined with the Camaro's other improvements, we're thinking that this new ZL1 will be quite a hot ticket, and based on these spy shots, we can't wait to find out.