UAW President Bemoans Work Moving to Mexico to Cut Labor Costs
- Contracts boosted pay, but allowed more geographic flexibility
- Union seeking to organize foreign companies' U.S. operations
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Three months after the United Auto Workers ratified new four-year agreements with Detroit-area automakers, President Dennis Williams said one of the union’s biggest challenges is the shift of car production to low-wage countries like Mexico and China.
The new labor agreements with General Motors Co., Ford Motor Co. and FCA US LLC gave raises to entry-level workers, who start at lower pay and with less-valuable benefits. While allowing new workers to reach to the top pay scale, the contracts also leave automakers free to boost production -- particularly of small, less-expensive cars -- in places like Mexico and to import other models from China.