UAW ratifies 3.5-year contract with Blue Cross Blue Shield of Michigan
Jakkar AimeryDetroit — The United Auto Workers union ratified a 3.5-year labor agreement with Blue Cross Blue Shield of Michigan on Wednesday, ending an 88-day strike by 1,360 workers.
The agreement was "overwhelming in favor of ratification" by UAW-represented employees in voting on Dec. 5-6, covering 1,360 BCBSM and Blue Care Network workers. The deal is retroactive to Sept. 1 and runs to May 1, 2027, Blue Cross officials said in a statement late Wednesday.
The announcement of the ratification comes after the UAW on Nov. 28 announced that a "verbal agreement" between UAW President Shawn Fain and BCBSM CEO Daniel Loepp produced "significant general wage increases," a $6,500 ratification bonus for Blue Cross Blue Shield employees and a $5,000 ratification bonus for employees of Blue Care Network HMO.
Reached late Wednesday, a UAW representative referred to comments on social media, where the union congratulated BCBSM workers on ratifying the agreement.
"Congratulations to Blue Cross Blue Shield workers who have voted by 89% to ratify their new contract!" the UAW said on the platform X.
Workers likely will return to their jobs as early as Thursday "unless otherwise instructed by their leader," Blue Cross officials said in a news release late Wednesday.
"We have an agreement that provides competitive wages and benefits, while ensuring the company maintains reasonable administrative costs into the future," they said. "UAW bargaining unit employees will return to work as soon as Dec. 7 unless otherwise instructed by their leader."
BCBSM employees who work in call centers and in claims processing walked off the job Sept. 13. Striking workers said they wanted to halt a steady stream outsourcing of their jobs, unfair labor practices and wage disparity between veteran employees and younger workers.
It was unclear if those goals were met in the new contract. Details were not released Wednesday.
The strike centered 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.
Earlier this month, the union's autoworker members ratified contracts with the Detroit Three, ending nearly 10 weeks of work stoppages at select plants.
jaimery@detroitnews.com