The Impact of Local UAW Negotiations on National Bargaining

Implications: Implications The UAW (International) negotiations with Ford, Chrysler and General Motors (OEMs) are in the final stages, but already there are signs of significant changes in the collective bargaining agreements that will make US automakers more competitive at the shop floor level. In part, this is due to changes in bargaining strategy by the UAW to allow local union bargaining to shape negotiations at the national level.

Analysis:

Analysis

From the outset, OEMs have been pushing for competitive operating agreements and flexible manufacturing systems that dramatically restructure the workplace. More specifically, OEMs have sought to impose two-tier wage systems, changes in job classifications, and/or increases in temporary and contract workers on the shop floor, among other changes.

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In local UAW negotiations, the International has permitted local unions to negotiate what amounts to concessionary contracts in an attempt to attract or maintain work at existing plants. In the past, the UAW would have prevented local unions bidding from against each other for work in ways that would lower labor standards. But in this round of negotiations, the International has played a minimal role in limiting the extent of local bargaining. The reason may be that the International can now simply codify what has been negotiated at the local level by making it part of the national agreement, thus making it politically easier to assure ratification.