Phone conversations over the past week between Blue Cross Blue Shield of Michigan President and CEO Daniel J. Loepp and UAW International President Shawn Fain have resulted in a verbal agreement.
The two leaders will formalize the agreement on Wednesday (Nov. 29) and ratify it into a new collective bargaining agreement by UAW members, ending the UAW’s strike that began on Sept. 13.
“Our members have proven that when workers stick together, they can achieve historical gains at the bargaining table.” said UAW Secretary-Treasurer Margaret Mock, who also serves as the Director of the union’s Technical, Office and Professional (TOP) Department. “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.”
The agreement also included the reduction of the wage progression from 22 years to five, significant general wage increases, a $6,500 ratification bonus for BCBS workers, a $5,000 ratification bonus for Blue Care Network workers, and inflation protection bonuses of $1,000 each year of the contract.
Negotiations were also able to secure stronger contractual language to protect worker jobs from being outsourced during the life of the agreement.
The collective bargaining agreement would also include UAW-represented employees at BCBSM’s HMO subsidiary, Blue Care Network of Michigan.
“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,” said Loepp. “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.”