Union workers from the Detroit 3 automakers ratified a new contract last week, effectively concluding a contentious labor strike. In a related movement, approximately 2,100 unionized workers at Hollywood Casino at Greektown and MotorCity Casino reached an agreement shortly after. However, the situation at MGM Grand Detroit remains unresolved, with workers continuing their strike.
Yet, another labor dispute is simmering in Michigan, this time involving the United Auto Workers (UAW) and Blue Cross Blue Shield of Michigan (BCBSM). Approximately 1,100 UAW members have been striking for 68 days, unable to secure a contract with BCBSM. The points of contention include demands for wage increases, improved healthcare benefits, the reinstatement of outsourced jobs, and opposition to BCBSM’s multi-tiered pay structure.
Janice Hilliard, president of UAW Local 2145 in Grand Rapids, expressed concerns about outsourcing to Crain’s Detroit: “Currently a lot of our work gets outsourced to vendors, including out of the country, such as El Salvador and the Philippines… We wanted to get some type of (contract) language to pretty much stop that, so to speak.”
BCBSM, in an email to Crain’s, acknowledged the ongoing negotiations and the exchange of a new proposal. “We had productive meetings with the UAW team last week, exchanged proposals at the table, and have offered a record contract that improves wages and benefits, while addressing union concerns around outsourcing,” the insurer stated.
The latest proposal from Blue Cross included a $5,000 ratification bonus, a new $18 per hour minimum wage, a shortened pathway to maximum pay, and 7% pay increases upon promotion. This marked a significant improvement from the previous contract’s terms. However, it did not address the issue of outsourcing, a key concern for the UAW.
Daniel Middleton, BCBSM Executive Vice President, criticized union leaders in an Oct. 23 letter, accusing them of not negotiating in good faith and undermining the bargaining process. He emphasized BCBSM’s commitment to its employees, noting the continuation of medical benefits during the strike and urging a review of the company’s offer.
The distance between the UAW and BCBSM remains uncertain, with union representatives and leadership not responding to inquiries. The UAW represents BCBSM workers across Michigan, including in Detroit, Lansing, Grand Rapids, Marquette, and Traverse City. These employees, spanning various administrative functions, remain on strike, highlighting the ongoing challenges in resolving labor disputes within the state’s largest health insurer.