The United Auto Workers (UAW) and Blue Cross Blue Shield of Michigan (BCBSM) have taken a significant step towards resolving a prolonged labor dispute. A tentative agreement was reached on Tuesday following constructive dialogues between UAW International President Shawn Fain and BCBSM President & CEO Daniel J. Loepp.
In a recent news release, BCBSM revealed that the proposed contract would bolster pay, benefits, and job security for UAW-represented employees at both BCBSM and Blue Care Network of Michigan. This agreement is poised to end the strike that commenced on September 13, now surpassing 70 days.
Loepp expressed optimism about the agreement, stating, “President Fain and I have agreed in principle on the construct of a new collective bargaining agreement… On Wednesday, our bargaining teams will meet to formalize our agreement – bringing our employees one step closer to returning to work.”
Key highlights of the tentative agreement include a significant reduction in wage progression time from twenty-two years to five and notable general wage increases. The deal also features a $6,500 ratification bonus for Blue Cross Blue Shield workers, a $5,000 bonus for Blue Care Network workers, and inflation protection bonuses of $1,000 annually throughout the contract duration. Furthermore, the agreement includes strengthened contractual language aimed at safeguarding jobs from outsourcing.
UAW Secretary-Treasurer Margaret Mock, who also serves as the Director of the union’s Technical, Office and Professional (TOP) Department, emphasized the historic nature of the agreement. “Our members have proven that when workers stick together, they can achieve historical gains at the bargaining table.” Mock acknowledged the hardships endured during the strike, especially due to inclement weather, but praised the members’ unwavering solidarity and commitment.
The strike was primarily fueled by the union’s demand to abolish the multi-tiered pay structure, which required two decades of seniority for reaching top pay rates. “Wage progression and job security were concerns that we knew we had to fix during this round of bargaining,” Mock said, noting the successful shortening of the wage progression timeline.
Upon ratification, the contract will cover around 1,300 UAW members from four local unions: Locals 2500 and 1781 from Detroit, Region 1, led by Director LaShawn English, and Locals 2145 (Grand Rapids) and 2256 (Lansing) from Region 1D, led by Director Steve Dawes. As the ratification process unfolds, members will continue their strike, marking a critical juncture in this significant labor movement.
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