GM, UAW Ratify New Labor Agreement
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General Motors and the United Auto Workers have officially inked a new labor agreement that will span through 2013. In short, the contract will cover roughly 48,500 hourly GM employees, and is expected to increase the company’s labor costs by 1 percent annually, totaling $215 million through 2013.
Most of the increased labor costs will go towards the new $5,000 signing bonuses set in place for workers, and cover buyouts of up to $75,000 for skilled trades workers. After that, GM expects the labor costs to rise only $20 million for 2012 and 2013 compared to the previous labor agreement.
The UAW and GM also agreed on no pension increases, a capping of the hourly defined beneficiaries to the pension plan population and the cancellation of free legal services for workers.
Additionally, a new profit sharing plan based on the company’s financial performance will be put in place, as will quality-based bonuses based on initial quality studies of vehicles.
As reported earlier, second-tier wage employees will be able to earn an pay increase of up to $3-an-hour but they will also see a payment of $1,000 in lump-sum annual bonuses.
The new deal increases GM’s labor costs by the slimmest margin in four decades, but do you think it’s a good deal? Sound off in the comments below!
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this contract is not the best,but strategically yes wy..one dodge cant make the same deal because of the death..and is good for dodge…but ford in hot water ford worker want a bigger raise,refuse the same deal gm worker………one the economy still fragile.very fragile..2 if they refuse and go on strike..customer switch compagnie..what gm did whit union..play safe ..maybe they have something in paper we dont no..