
Sources: GM offers 2% raises to UAW; company ends strikers' health care
General Motors stopped paying for health care coverage for striking workers Tuesday, the company confirmed. That means striking GM union workers are eligible for union-paid COBRA to continue their health care benefits. The latest development added to tension as GM and the UAW returned to the bargaining table Tuesday morning. The two sides negotiated until about 9 p.m. Monday, sources said. Meanwhile, more details emerged about GM's offer to the UAW. Two sources familiar with GM's offer said it called for a 2% wage increase for the first and third year of the four-year contract and 2% lump sum payments the second and fourth years. UAW members are emotional after GM moved to shutter U.S. plants, so the fear that the automaker wants to break the union is understandable to Marick Masters, business professor at Wayne State University who specializes in labor. But he said, it's not realistic. “If that were the case, they could take more draconian measures, such as hiring other workers, encouraging people to break the line and go back to work or GM could have had a workforce ready to hire before this even started,” said Masters. GM likely knows it will have a union for the foreseeable future, which is why it is structuring a contract that allows it to be more cost competitive against nonunion automakers, he said. That means having the ability to have a larger temporary workforce and multiple wage tiers is crucial to the carmaker. But the two sides must reach an agreement in short order for several reasons, he said.