General Motors reached a tentative agreement with the UAW late Friday evening, details of which are not being disclosed at this time.
“We used a creative problem solving approach to reach an agreement that addresses the needs of employees and positions our business for long-term success,” said Cathy Clegg, GM Vice President of Labor Relations.
“We worked hard for a contract that recognizes the realities of today’s marketplace, enabling GM to continue to invest in U.S. manufacturing and provide good jobs to thousands of Americans.”
According to the UAW, the deal includes “improved profit-sharing”, “significant improvements to health care benefits”, and reinstating laid off workers. Several insiders have reported that the accord also includes assurances of new products for U.S. plants, signing bonuses worth several thousand dollars as well as a small increase in wages for entry-level workers who, based on the new pay scale, have been earning half as much as workers on the older pay grade.
In a statement, the UAW said that it was effective in fighting GM’s proposals to reduce workers’ retirement benefits and health care benefits. “In both pensions and health care, the U.A.W. was able to convince G.M. that far greater success could be achieved working together than by cutting pensions or health care,” the statement said.
Now it’s up to UAW International to educate its members on the agreement and perform a ratification vote, which is expected to take place within the next 7 to 10 days. UAW currently represents about 48,500 GM employees in the United States who would be covered by the agreement if it is ratified.
Since its bankruptcy in 2009, General Motors has introduced investments of more than $5.1 billion while creating or retaining nearly 13,000 jobs in its U.S. manufacturing plants.
Ford and Chrysler are still in negotiations with the UAW.
We’ll follow this one closely and report as soon as we know more, folks!