UAW picket signs outside a GM plant in Detroit. Photo: Jeff Kowalsky/AFP via Getty Images

A tentative 4-year labor contract with the United Auto Workers lets GM shutter underutilized factories as it wanted, but could also lock in higher labor costs across the domestic auto industry.

Why it matters: Detroit typically follows "pattern" bargaining — the economic terms struck at one company are generally matched by other UAW-represented automakers, setting a uniform standard of living for all unionized auto workers.

  • But the terms laid out Thursday would do little to lower labor costs ahead of what automakers anticipate will be a disruptive and expensive decade of change, writes the Detroit News.

What's happening: Factory workers at GM will receive big bonuses and keep their lucrative health benefits under the proposed contract, which is subject to ratification by 49,000 striking workers. They'll continue to walk the picket lines until the vote is completed a week from today.

  • "I'm sure neither Ford nor Chrysler is going to be thrilled with the economics of this deal," GM's former director of labor relations, Arthur Schwartz, now a consultant, told the News.
  • The record-setting $11,000 signing bonus GM is offering UAW members, along with the lack of changes to current health care benefits, will be costly to Ford, which has more hourly UAW workers than GM.
  • Changes to pay for workers hired after 2007 and temporary workers that were hot-button issues during the GM contract talks could be expensive to FCA, which has a younger workforce.

Yes, but: The concept of pattern bargaining has weakened in recent years, and it will be up to negotiators on both sides of the table at Ford and FCA to hammer out their own deals in the coming weeks.

Go deeper: Health benefits won't change for GM workers

Go deeper

Updated 5 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4:30 p.m. ET: 31,735,542 — Total deaths: 973,443 Total recoveries: 21,798,488Map.
  2. U.S.: Total confirmed cases as of 4:30 p.m. ET: 6,925,840 — Total deaths: 201,617 — Total recoveries: 2,646,959 — Total tests: 96,612,436Map.
  3. Health: CDC director says over 90% of Americans have not yet been exposed to coronavirus — Supply shortages continue to plague testing.
  4. Politics: Poll: 51% of Republicans trust Trump on coronavirus more than the CDC.
  5. Vaccines: Johnson & Johnson begins large phase 3 trial — The FDA plans to toughen standards.
  6. Sports: Less travel is causing the NBA to see better basketball.

Trump says he wants 9 justices in case Supreme Court must decide 2020 election

President Trump told reporters at the White House on Wednesday that part of his urgency to quickly push through a replacement for the late Justice Ruth Bader Ginsburg is that he believes the Supreme Court may have to decide the result of the 2020 election.

Why it matters: Trump claimed at the Republican National Convention that the only way he will lose the election is if it is "rigged," and he has declined to say whether he would accept the results of November's election if he loses to Joe Biden.

"Not enough": Protesters react to no murder charges in Breonna Taylor case

A grand jury has indicted Brett Hankison, one of the Louisville police officers who entered Breonna Taylor's home in March, on three counts of wanton endangerment for firing shots blindly into neighboring apartments.

The state of play: Angering protesters, the grand jury did not indict any of the three officers involved in the botched drug raid on homicide or manslaughter charges related to the death of Taylor.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!