Detroit — The leaders of Blue Cross Blue Shield of Michigan and the United Auto Workers have reached a ÿverbal agreementÿ Tuesday on a new contract, potentially ending a 77-day strike by 1,300 unionized call center and claims processing workers.þþPhone calls between BCBSM CEO Daniel Loepp and UAW President Shawn Fain over the past several weeks produced a ÿverbal agreementÿ between the two leaders towards the establishment of a collective bargaining agreement, Blue Cross said late Tuesday.þþThe tentative agreement includes ÿsignificant general wage increases,ÿ a $6,500 ratification bonus for Blue Cross Blue Shield employees and a $5,000 ratification bonus for employees of BCBSM's Blue Care Network HMO, according to the UAW.þþThe strike centered, in part, on a wage-scale system that required employees to work for 22 years before earning the top-level wages. The tentative agreement would shorten that period to five years, according to the UAW.þþ“Wage progression and job security were concerns that we knew we had to fix during this round of bargaining,” UAW Secretary-Treasurer Margaret Mock said Tuesday in a statement.þþThe union and Detroit-based health insurer's bargaining teams were expected to formalize and ratify agreements into a new collective bargaining contract on Wednesday, according to Blue Cross.þþUAW members will remain on strike until the contract is ratified by members, the union said.þþÿPresident 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,ÿ Loepp said Tuesday in a statement. ÿOn Wednesday, our bargaining teams will meet to formalize our agreement — bringing our employees one step closer to returning to work.ÿ
Source: detroitnews.com
