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The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.

Ford dinged by OSHA for asbestos at Buffalo plant

Ford has come under fire from the Occupational Safety and Health Administration (OSHA) for violations regarding asbestos exposure in a company metal stamping plant in Buffalo, NY. OSHA has cited Ford for eight violations in total, according to an Automotive News report, and faces fines of up to $41,800. 537 workers are employed at the stamping facility.
The violations include a pipefitter at the facility being exposed to asbestos-containing material while working on a steam line, other workers exposed to the material without respiratory protection and work areas that were not designed to limited the number of workers in contact with asbestos. Further, areas in which asbestos was present were not properly restricted, and levels of asbestos in the air were not monitored.
According to an unnamed Ford spokesperson in the AN report, the company feels that the OSHA citation is erroneous saying, "We have fully cooperated with the local OSHA officials and we don't believe the citations are warranted." Ford also maintains that it will work with the authorities to resolve the issue.

Recharge Wrap-up: BMW tests AdBlue pumps, Drivr is a Tesla taxi service

BMW is testing AdBlue pumps in Germany. AdBlue fluid is used to remove NOx from diesel exhaust, and it is stored in its own tank within the vehicle. Filling AdBlue is easy enough for drivers to do it themselves, and with the proliferation of diesel vehicles in Europe, a pump filling system could make more sense than using the current hand-held containers. BMW is testing AdBlue pumps at three fueling stations in Munich and Berlin to help develop further AdBlue dispenser technology. Read more at Green Car Congress. Drivr Green Personal Transportation is a Tesla taxi service in Cincinnati. Two former employees of Tesla Motors founded the startup, which bills itself alongside ride-hailing services like Uber and Lyft. Customers book a ride online, and are picked up by a Tesla Model S. The ride costs $2.50 per mile with a $15 minimum. Drivr currently operates three cars with seven drivers, with plans to lease another 10 Teslas and employ up to 30 drivers. The service will also be expanding to Denver soon, according to the website. Learn more at the Drivr website, or read more at Clean Technica. Ford is opening a research and development facility in Silicon Valley. The Ford Research & Innovation Center, which will be located less than three miles from Tesla Motors headquarters in Palo Alto, California, is expected to be one of the automotive industry's largest R&D facilities. "We're driving to be both a product and a mobility company, and ultimately to change the way the world moves," says Ford CEO Mark Fields. Read more at Automotive News. Law firms advising Fisker Automotive have been denied a $2.50-million fee enhancement in the car company's bankruptcy. Brown Rudnick LLP and Saul Ewing LLP were denied the extra fees, as a Delaware bankruptcy judge ruled there is "no evidence" that the firms provided anything more than what they originally expected. In denying the fee enhancement, the judge cited a "very high bar" for such awards. Read more at Law360. Featured Gallery BMW Tests AdBlue Pumps in Germany Related Gallery Tesla Factory News Source: Green Car Congress, BMW, Clean Technica, Drivr, Automotive News Green BMW Fisker Ford Tesla Transportation Alternatives Diesel Vehicles Electric recharge wrapup