Monday, April 4, 2016

Final Offer


The film the “Final Offer” provides insight to the contract negotiations between the United Auto Workers and GM set in 1984.  GM had struck a deal with the United States to implement a profit sharing plan and replace the annual 3% wage increase which was the standard cost of living increase for decades prior.  GM has experienced a large increase in profits but wanted the union to believe that the auto market was unstable and increased competition could mean an unstable future market.  The goals of GM were to mirror the recent negotiated contract with the US and implement the same terms for the Canadian Union.  GM was looking to eliminate the 3% wage increase and revert to profit sharing, which would pay out year-end bonuses based on the profitability of the company.  GM wanted to eliminate 80,000-100,000 jobs and expand outsourcing.  The goal was to increase the output of the current labor force and strong arm them into increased productivity will less benefit and uncertainty in pay.   Bob White, the leader of the Canadian UAW, understood that what was good for the United States did not parallel the interests of the Canadian laborers and there would be severe backlash if he did not negotiate for the cost of living wage increase the workers were accustom to.  GM expected Bob White to participate in pattern bargaining in which the Canadian contract would mirror that of the US.  Bob White knew that this negotiating would lead to the split from the UAW and lead to the formation of the Canadian Auto Workers.  With backing from the membership White pushed for the 3% wage increase, ended up in the end with a 2 ¼% increase, but split from the UAW.  If White was not backed by the membership and his laborers who respected White, the negotiation could not have turned out as it did.  There was increased pressure from Beiber, and Smith throughout the talks as the strike date loomed near.  White did not back down from the tactics employed by the UAW and GM.  Even as the talks became heated and the possibility of closing a deal on White’s stated terms seemed next to impossible, White remained calm and collected and did not show his hand, when others flinched.

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