The UAW has uploaded a bulletin to its website containing the full details of its tentative contract with General Motors.
If ratified, the new deal will give UAW workers 4-percent lump-sum payment bonuses in the first and third years of the contract, along with a 3-percent base-wage increase in the second and fourth years. This also means that within four years or less, all permanent manufacturing employees working as of the contract’s effective date will be paid $32.32 an hour.
Union members will also receive an $11,000 ratification bonus, a record according to the UAW, while temporary workers that have been with the company for at least 90 days will receive a $4,500 ratification bonus. The contract also sees the removal of the profit sharing cap. Previously, workers received $1,000 for every $1 billion in profit the company made, with a ceiling of $12,000.
GM will now provide skilled trades employees with a $1,000 tool allowance this year and in 2021 as well.
Additionally, the contract will see no changes to the healthcare plan provided to unionized workers by GM. The company had proposed a 15-percent cost share in the form of premium share and increased deductibles, but the UAW said it “stood firm” in defiance to the proposed change. GM UAW workers currently pay 3 percent of their healthcare costs—considered to be a strong plan in the industry.
Under the contract, GM’s Lordstown Assembly plant will remain closed, as will its Baltimore and Warren Transmission plants. The Detroit-Hamtramck plant will remain open “with a new product,” though the bulletin did not indicate if it would be the rumored electric pickup truck. GM will also close its ACDelco parts distribution center in Fontana, California under the proposed contract.
“We remain strongly opposed to GM’s decision to ‘unallocate’ these plants and we will continue our efforts to fight for UAW jobs in America,” the union bulletin said.
The UAW claims it secured “major gains” for temporary full-time workers, who will begin to be converted to permanent status after three or more years of continuous service, starting on January 6, 2020. The “conversion” to permanent employment will continue throughout the 2020 calendar year. Starting in January of 2021 and thereafter, all full-time temporary UAW workers with two years or more of continuous service will be converted to permanent status. The bulletin also says that beginning in January of 2021, “all part-time temporary employees will convert to regular status employees upon completion of two years of continuous service provided the last 12 months were as a full-time temp.”
Those UAW workers that were hired before October 2007 who have Personal Savings Plan pensions will receive a one-time company contribution to the fund of $1,000. GM will also provide up to 2,000 legacy production employees and up to 60 skilled trades members with an early retirement option between December 31, 2019 and February 28, 2020, who will receive a gross payment of $60,000.
“Your bargaining committee appreciates the sacrifice and solidarity of our members as we worked to achieve key gains through the Collective Bargaining Process,” the UAW also said in the bulletin.
You can read the proposal in its entirety at this link.
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Comments
Interesting that GM got the UAW to agree on closing plants. Barra probably stepped in when the union leaders were asking for everything and had to temper their expectations.
Seems like a fair deal, both parties had to make compromises. I hope the CT6 is kept alive
Seems like GM, currently flush with profits, is essentially looking to bribe it’s way to acceptance of this deal with some admittedly generous wage and bonus offerings and graciously relenting on the attempt to require a “give-back” on the health care plan. However, current workers had better enjoy the spoils while they can – while they still have jobs. From my reading of this, the union totally folded on production allocation and plant closure issues, leaving GM a free hand to continue hollowing out North American manufacturing in favor of its offshore facilities. As this continues, North American employment (and union membership) will continue to decline, leaving GM with an even stronger hand by the expiration of this proposed contract.
In addition, it looks like GM, if so inclined, can easily circumvent the new temp worker provisions by simply electing to lay off temps prior to conversion eligibility, or by making them part-timers.
I hope I’m wrong about where things are headed, but I truly fear that, within the foreseeable future, we’ll have nothing to buy but offshore-manufactured “domestics” and import transplants produced in non-union plants offering substandard wages/benefits.
GM has too many plants open that are under utilized and if they’re not making money then they’ll be closed – a business exists to make money.
However, a plant in the US should have gotten allocation to build the Blazer from the start. That is a huge mistake on their part
I don’t feel bad for GM in this, they are a healthy company. But holy smokes that’s one hell of a package for, no offense, assembly workers. You’ve got people like nurses, teachers, fire fighters, engineers (if you include the overtime and bonus potential with UAW), etc earning less.
I’m stunned when I convert that package to Canadian dollars absolutely stunned.
you aren’t giving cops/firemen enough credit for their ability to game the system. i don’t know how it is in Canada, but in california, they do pretty well.
Here in Chicago Cops & Firemen deserve every penny they get. We may want to take a closer look at some of their expensive less useful equipment.
How much are you worth at your job? Not you Andrew personally, Anyone how much are you worth. The truth of the matter you’re only worth as much as it would cost to replace you.
GM cost over the 4n companies were $13 higher in labor cost per employee and were 1 million over capacity.
I would like to know where this puts them in relation?
I hoped the were able to close ground at least on the over capacity.
wall street gave this a collective shrug. gm stock down a little over 1%.
This agreement guarantees that GM will close more plants in the US and transfers more production to Mexico and China. Mexican and Chinese workers are far more productive that fat, lazy Americans and NEVER STRIKE.
It’s way too expensive to build anything in the US. A Mexican worker costs GM 2 to $5/hour.
So,… fat, lazy, Carry, what do you do for a living, and how much are you paid, or should I say, overpaid…..
I’m sure GM really thought that the UAW would cave before now. It’s become apparent that GM made more concessions in the face of ongoing profit losses as the strike dragged on. I’m not a union guy by any means but turnabout is fair play: The UAW made lots of concessions to keep GM alive during the Great Recession, so it’s GM’s turn now that they are very profitable again. Too bad it look a month long strike for GM to realize that.