General Electric Company (NYSE:GE) has achieved tentative arrangements on the labor contracts with two of its biggest unions as they approach an expiration of their previous 4-year agreement.
The arrangements with the Union leaders are now subject to the union negotiating board and will be approved by the union members. It includes the United Electrical,Radio, IUE-CWA, and machine workers of America. The leaders of both unions are scheduled to meet this week to carry out the review process. If the tentative agreements are recommended for approval, then the voting for approval will take place before the month ends as expected.
Roughly 16,500 General Electric employees belonging to the particular unions in the United States will be affected by the agreements that will ensue. That demography accounts to roughly 12% of the company’s total labor force. The previous four-year contract between the unions and the firm will come to an end on Sunday at the end of the week.
So far the talks seem to be going smooth seeing as how the unions have not pushed the firm make any extreme amendments. The process is expected to continue with the same friendly atmosphere over the remaining period allocated. The two parties have however not made any announcements revealing further details about the agreements.
The talks come just a few months after the company resolved to dispose its lending asset to focus on the original objective of the firm. General Electric Company (NYSE:GE) had maintained that it would cater to all the employees affected by the divestment of the unit. Thus, the talks have been engaged at an opportune time because the workers have been facing uncertainties about their future in the company.
The new contract will cater for the concerns of the unions particularly all the loopholes that might lead to uncertainties. The firm has always made an effort to maintain a good relationship with the unions. The meetings are expected to yield results that will favor both parties involved.