UAW chooses GM for next negotiations

After a rocky first attempt, the United Auto Workers now has a ratified deal with FCA US, and the union is setting its sights on General Motors as the next negotiating partner for a new contract, according to a brief statement. The group is expected to use the first arrangement as a basic framework but ask the General for even more. "Dennis Williams has already said it's going to be Chrysler-plus at GM and Ford," labor analyst Arthur Schwartz said to Reuters.

Because GM is a more profitable automaker than FCA US, the UAW reasons that the company should be able to provide more to members. Like in the first deal, the union is expected to negotiate a way to mitigate the two-tier wage system by offering a path to pay parity for workers. The General could drive a very hard bargain, though. According to Reuters, the automaker already carries higher labor costs because it has fewer lower-tier employees at around 20 percent, versus 45 percent for FCA.

The stage looks set for serious negotiations between the two. On one side, GM reportedly wants to protect its profit margins in the new contract. However, UAW members are clearly willing to reject a deal and threaten a strike, if necessary.