General Motors has released an official statement following its agreement with the UAW on a contract proposal, which the union must now vote to ratify.
“General Motors has reached a tentative agreement with the UAW. We encourage the UAW to move as quickly as possible through the ratification process, so we can resume operations and get back to producing vehicles for our customers,” the statement said. “Our goal during these negotiations was to ensure the future of General Motors is one that works for our employees, dealers, suppliers and the communities where we operate. The agreement reflects our commitment to U.S. manufacturing through the creation of new jobs and increased investment.”
The UAW National General Motors Council has decided to leave workers on strike while they vote to ratify the proposal, meaning the 48,000 unionized GM employees will remain off the job until the end of the month at the earliest. The union is expected to begin voting on Saturday, with all ballots to be turned in by October 25th.
We went over the details of the contract proposal in an earlier article, though some of the highlights include a large ratification bonus of $11,000 (temporary workers who have been with the company for at least 90 days will receive $4,500) in addition to a 3-percent wage increase and 4-percent lump-sum payment on alternating years of the four-year deal. The proposed contract will also keep the Detroit-Hamtramck Assembly plant open, with GM set to allocate a new, unnamed product to the facility, though Lordstown Assembly and the Warren and Baltimore Transmission plants will remain closed. The union had previously indicated that it would not accept a deal that did not include new products for both Detroit-Hamtramck and Lordstown.
“From the outset your brothers and sisters, local leaders and bargaining team members identified key areas of concern to focus on throughout this process: a clear pathway for temporary workers to full-time status; shortening the in-progression period; maintaining our current health plan and costs; improving our share of profits; as well as protecting job security and future work. We are pleased to announce that thanks to your solidarity and sacrifice, we have achieved gains toward all of these bargaining priorities,” the union said in a bulletin announcing the deal.
In addition to closing Lordstown, Warren and Baltimore Transmission, the deal will see GM close an ACDelco parts fulfillment center on Fontana, California.
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Comments
so all of those bonuses is the price to throw lordstown/warren/baltimore under the bus? i wonder what those UAW members are thinking.
trump has been conspicuously silent during the strike. i guess he has bigger fish to fry at the moment.
The orange carrot had 5 new investigations launched against him just yesterday.
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.
While I agree with your lower comments you reveal what a $%&tbag you are with the carrot comments. STFU DB, President Trump is FOR mfg in the USA but the UAW renders GM uncompetitive. He’s quiet because he supports working Americans and Mfg but not the UAW… Silence is golden.. you should practice it, pathetic @$$….
Yes, but it is unlike Trump to not want to change the subject while he is being investigated. He usually likes to start some other story to distract from what he is doing or did. I do support his attitude toward American manufacturing or the lack there of.
GM has made the most profits in its history and it will close Lordstown, its second largest US plant as it simultaneously allocates new products like the Blazer and Chevy Onyx to Mexico.
If this why Americans bailed out GM?
By the way. The new sedan, the Onyx, is being built in Mexico for the small car market that GM says customers don’t want. As soon as gas prices climb GM will be pumping those cars back to the us and pedaling them to American consumers.
Sad
The Onyx is a GEM Platform it can never be shipped in the US without extensive and costly upgrades. It’s meant for different regulatory bodies/markets that follow different rules.
GM wasn’t bailed out. The old company’s shareholders got wiped out 100%. Bondholders lost most of their money. The UAW and the pensioners were bailed out by US. Subsequently, US sold shares to new investors who have since lagged significantly vs. the wider market.
Absent US bailout, UAW workers would have been forced to seek market wages. So, please please please, it wasn’t the bailout of company, it was the bailout of UAW.
Bulls Eye.. it was a DemoRat Politician, once again using taxpayer dollars to buy votes….
Even with a worse case scenario in which the Onyx was modified to come to the US, what would be wrong with that? At least they would have a small car to fall back on as apposed to having little or nothing at all. It is too bad that cars are going away because of the pickup and SUV new age buyers, because GM sure has had a lot of nice competitive models available for quit sometime to satisfy most any truly informed auto enthusiast!
I have a new Buick coming in a week or so, and a Chevrolet for sale/trade in. It makes me feel good to support an American manufacture regardless of the domestic content.
Just glad to see the workers be able to support their families again.