The United Auto Workers union and General Motors have reached a tentative agreement on a new four-year contract, avoiding a strike for now.
The UAW said the deal was reached at 11:43 p.m. Sunday, 16 minutes before the deadline it had set to either reach a deal or call a strike at GM’s U.S. plants.
Details of the proposed contract weren’t immediately available. The UAW said local union leaders will meet Wednesday in Detroit to vote on the tentative pact. If they approve it, GM’s U.S. hourly workers will vote on it.
The agreement covers 52,600 U.S. auto workers at 63 GM facilities in the United States.
UAW President Dennis Williams said the proposed deal will provide “long-term, significant wage gains and job security benefits now and in the future.” The union also hinted that this agreement — like a contract passed last week by Fiat Chrysler workers — gradually will eliminate a much-hated two-tier wage system in the plants.
GM said in a statement that the agreement benefits employees but still provides flexibility to the company. The company said it would not comment further until the agreement is ratified.
On Thursday, union members at Fiat Chrysler voted to approve a four-year contract that includes pay raises and phases out the two-tier wage system over eight years. Williams indicated that the union wanted even better deals from GM and Ford because they are more profitable. The UAW hasn’t yet reached a tentative agreement with Ford.
— Associated Press
Age discrimination is pervasive in the United States, despite laws that prohibit it. And the older you are, the more discrimination you face, according to a National Bureau of Economic Research study released Monday. Older women have it particularly tough.
Three economists — David Neumark and Ian Burn of the University of California at Irvine and Patrick Button of Tulane University — designed a field experiment to try to document how widespread discrimination is, particularly among workers nearing retirement age. Using more than 40,000 job applications, they responded to job ads with similar fictional resumes for workers purported to be ages 29-31, 49-51 and 64-66. The study looked at a dozen cities, including New York, Chicago, Los Angeles and Boston.
Whether the jobs were for administrative, sales, security positions or janitors, the rates of callbacks — either by phone or e-mail — were much higher for younger workers than for older ones.
Discrimination, rather than lack of skills, may help explain why older workers have longer periods of unemployment duration. What’s more, the bias worsens when gender is considered.
“We find robust evidence of age discrimination in hiring against older women,” the economists wrote, citing data on callbacks for sales jobs. “There is evidence of stronger age discrimination for women than for men in sales.”
— Bloomberg News
● Sales of new U.S. homes slumped in September to a 10-month low, disrupting a trend of steady improvement this year in the industry. Sales dropped 11.5 percent to a 468,000 annualized pace, and the prior two months were revised lower, Commerce Department figures showed Monday. The September rate included a record percentage decline in the Northeast. Limited inventory may be holding back progress in housing, which has helped buffer the U.S. economy from slower growth abroad. Builders may need confirmation that job growth and cheap borrowing costs remain in place before investing in land and labor.
● Japanese tire maker Bridgestone said it would buy auto parts retailer Pep Boys — Manny, Moe & Jack for $835 million. The deal will boost Bridgestone’s retail network by more than a third in the United States, the company said. Bridgestone operates a chain of auto care and tire stores in the United States through its Bridgestone Retail Operations unit. The company’s $15-per-share cash offer represents a premium of 23.5 percent to Pep Boys’ Friday closing. Pep Boys has been on the block since June, when it said it was considering selling itself as part of a strategic review.
● Wal-Mart applied Monday to U.S. regulators for permission to test drones for home delivery, curbside pickup and checking warehouse inventories. For several months, the world’s largest retailer by revenue has been conducting indoor tests of small unmanned aircraft systems and is now seeking to test the machines outdoors. It plans to use drones manufactured by China’s SZ DJI Technology Co. Wal-Mart said that in addition to having drones take inventory of trailers outside its warehouses and perform other tasks aimed at making its distribution system more efficient, it is asking the Federal Aviation Administration for permission to research drone use in “deliveries to customers at Walmart facilities, as well as to consumer homes,” according to a copy of the application.
● JPMorgan Chase plans to add 1,800 jobs in Delaware by 2019. Company and state officials said Monday that the new hires will bring JPMorgan’s Delaware workforce to almost 10,000 employees, spurring the state’s total financial-sector employment to its highest level ever. The new employees will work primarily in tech, finance, asset management and global data operations. Gov. Jack Markell’s office said the new jobs would represent the biggest corporate expansion since AstraZeneca moved its headquarters to Delaware in 1999.
— From news services
● 8:30 a.m.: Commerce Department releases durable goods for September.
● ● 9 a.m.: Standard & Poor’s releases S&P/Case-Shiller index of home prices for August.
● ● 10 a.m.: The Conference Board releases the Consumer Confidence Index for October.● ●
● Earnings: Alibaba, Apple, Comcast, DuPont, Ford, JetBlue, Merck, Orbital, Pfizer, T-Mobile, Twitter, UPS.
— From news services