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.