DETROIT (WXYZ) — Blue Cross Blue Shield of Michigan and the United Auto Workers union reached a tentative contract agreement. The deal is expected to be formalized on Wednesday.
Tuesday night, BCBSM said the new contract would improve pay, benefits and job security for workers represented by the UAW. The agreement would also include UAW workers at Blue Care Network of Michigan.
"The agreement contains historic wins, including the reduction of the wage progression from twenty-two years to five, significant general wage increases, a $6,500 ratification bonus for Blue Cross Blue Shield workers, a $5,000 ratification bonus for Blue Care Network workers and inflation protection bonuses of $1,000 each year of the contract," part of a statement from the UAW said. "Negotiators were also able to secure stronger contractual language to protect worker jobs from being outsourced during the life of the agreement."
A verbal tentative agreement was reached after several phone calls “over the past week,” according to Blue Cross.
“Our members have proven that when workers stick together, they can achieve historical gains at the bargaining table.” UAW Secretary-Treasurer Margaret Mock said in a statement. “There were difficult times during this strike, especially with the cold weather, but our members never gave up hope and they continued to stand with one another for as long as it took to enable our bargaining team to win an equitable contract that our members deserve.”
BCBSM and the UAW have been negotiating for months. UAW workers at Blue Cross Blue Shield of Michigan walked off the job to strike on Sept. 13 before auto workers and Detroit casino workers joined the picket line.
Auto workers and casino workers at Hollywood Casino at Greektown and MotorCity Casino have since voted to ratify new contracts. MGM Grand Casino remains on strike after voting to reject a proposed deal earlier this month.
“Wage progression and job security were concerns that we knew we had to fix during this round of bargaining,” Mock said of the Blue Cross tentative deal. “Twenty-two years to reach top pay is unacceptable. Because of our members’ solidarity on the picket lines and our negotiators’ hard work at the bargaining table, we were able to address many of our demands.”
Blue Cross Blue Shield of Michigan said it plans to meet with the UAW on Wednesday to formalize the agreement. Then, it would be up for a ratification vote.
“President Fain and I have agreed in principle on the construct of a new collective bargaining agreement that would deliver significant income and job security for our unionized workforce,” Blue Cross Blue Shield of Michigan President and CEO Daniel J. Loepp said in a statement. “On Wednesday, our bargaining teams will meet to formalize our agreement – bringing our employees one step closer to returning to work. I congratulate and thank President Fain for reaching out and working directly with me to get us to the starting line of the ratification process.”
The UAW said the contract would cover about 1,300 members.
