General Motors has released an official statement on the results of the UAW ratification vote. In unofficial tallies released Friday afternoon, the worker’s union voted to pass the contract proposal, with an estimated 38,000 UAW members participating in the vote and 57% voting in favor of the contract put forth by GM earlier this month.
“We delivered a contract that recognizes our employees for the important contributions they make to the overall success of the company, with a strong wage and benefit package and additional investment and job growth in our U.S. operations,” said GM CEO Mary Barra. “GM is proud to provide good-paying jobs to tens of thousands of employees in America and to grow our substantial investment in the U.S. As one team, we can move forward and stay focused on our priorities of safety and building high-quality cars, trucks and crossovers for our customers.”
GM’s press release says the UAW contract will include the following:
- 3% wage increases or 4% lump-sum payments in each of the four years of the contract
- Retention of world-class healthcare coverage, preserving the current 3% cost to employees
- An $11,000 contract signing bonus for regular employees, and $4,500 for temporary employees
- Enhanced employee profit sharing, including no cap on our employees’ ability to share in the company’s profits
- A clear path for temporary employees to transition to permanent employment after three years of service, beginning in January 2020 for eligible employees with accrued time.
As we covered previously, the automaker will also invest $7.7 billion in its U.S. manufacturing operations as part of the contract proposal. The money will go toward the allocation of new electric vehicles to the Detroit-Hamtramck Assembly plant (though GM’s official release only mentions the “all-new electric pickup truck”), along with $4 billion for other “new vehicle programs and existing facility improvements across its U.S. plants.” GM’s release also confirmed that it is “moving forward with opportunities for future investments and job growth in Mahoning Valley in Ohio,” which fall outside of the national UAW agreement. This will include, as per the press release:
- An opportunity to bring battery cell production to the area, which would create 1,000 manufacturing jobs
- The sale of the GM Lordstown complex to Lordstown Motors Corp., a new company that plans to build electric pickups for commercial fleet customers. Lordstown Motors Corp. plans to create 400 manufacturing jobs initially.
Because these fall outside of the national agreement, GM is not obligated to follow through with them, though the automaker does strongly indicate it plans to go ahead with the battery cell production plant and the sale of the now-shuttered Lordstown facility.The UAW had previously indicated that it would not accept a deal from GM that did not include new product allocation for both Detroit-Hamtramck and Lordstown—though the union seems to be satisfied with GM’s plans for the Lordstown area, despite them falling outside of the national agreement.
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Comments
UAW, solidarity no one is going back to work, Ford and Chrysler still haven’t come to an agreement, Union is the same for all 3, I was a Teamsters brotherhood union, a strike is across the industry not just GM ??? Just want the best for auto workers,
To may haters, down votes, Don’t hit and run with out speaking up, What’s your opinion,
I down voted because GM is not just an American company, but competes globally. UAW is putting American car companies at a disadvantage against companies like Honda and Toyota. UAW could push American car companies back to bankruptcy. If you want my up vote, UAW needs to unionize ALL auto manufacturers.
You better get back to work or many more like me are going to sue GM for you all holding parts hostage. I didn’t pay 33 grand for a new vehicle to have it sitting rotting behind the dealership for two months. Get it together or give me my money back. Lawsuit about to happen.
Believe the UAW members got a fair deal regarding wages, benefits and path for temporaries to higher pay. The most beneficial and interesting aspect is the potential profit sharing plan with the elimination of the cap. Lastly, the signing bonus on return to work will help eliminate the financial burden on UAW members. Can’t wait for Bowling Green to get up to production on the new C8 Corvette, this product is a true game changer in the sports car world.
Unions…all about greed and bullying until they get what they want. And then when they get what they want they slack off until it’s the next time to throw an adult temper tantrum and refuse to work.
phony handshake from mary