Auto expert weighs in on GM and UAW negotiations

It's crunch time for the UAW and General Motors as they face a 11:59 p.m. deadline Saturday to come up with a deal.

Unlike years past, there are two things that may stand in the way of an agreement.  The UAW has the choice to reach a tentative deal, ask for an extension or walk.

"They would extend the contract if they're getting real close and they've got major agreement on just about everything but they still have a few loose ends. Then they would say look, let's not have a strike, let's extend the contract for a little while and get this all taken care of," said John McElroy with Autoline.

That's one of the best case scenarios for the UAW as they try to hammer out a deal with General Motors. GM is the first of the big three to negotiate with the United Auto Workers Union. 

Auto analyst John Mcelroy says the biggest thing that makes this negotiation different is the charges of corruption within the UAW that have surfaced -- something that can easily chip away at trust with the men and women of the UAW.  

"It's the corruption. I mean, this is the overlying story about this year's negotiations. It started at FCA, now it's speard to General Motors, and we're being told that Ford might be next. That is the overlying theme of what's going on," McElroy said. "Rank-and-file are going to vote on any contract unless it's a sweetheart of a contract, and I don't see that coming out of General Motors."

While that may bear heavy on the moods of the rank and file, their bread and butter comes in first. General Motors out of the big three carries the highest cost for labor. Workers are going to demand competitive wages, health care and profit sharing. 
Since 2011, profit-sharing checks averaged over 6,600 per worker at each of the companies. But with many asking whether a recession is around the corner, sources tell FOX 2 the big three leaders may throw that down for leverage. UAW insiders speaking anonymously say that's not fair. The economy today, is just fine. 

"It hasn't happened. We are exactly the same as last year and everyone agrees, last year was a pretty good year," McElroy said.

General Motors releasing this statement to Fox 2:

"GM's goal is to continue having constructive discussions with the UAW on reaching an agreement that builds a strong future for our employees and our business."

"Everyone's going to be exhausted and you know, remember this expires right at midnight so it's late into the day already. So there's going to be a lot of pressure, there's going to be a lot of tension, if they're very close to an agreement and decide that they want to extend, I wouldn't want to be in their shoes," McElroy said.