General Motors recently announced that hourly GM employees would enjoy wage increases, additional benefits, and new profit sharing opportunities as they transition to become full-time GM employees in the first quarter of the 2020 calendar year. The changes affect more than 1,350 hourly employees located in the U.S. at 14 facilities in eight different states, including Indiana, Kansas, Kentucky, Michigan, Missouri, New York, Tennessee, and Texas.
“We are excited to welcome these employees as regular, full-time team members,” said executive vice president of Global Manufacturing, Gerald Johnson. “Our employees are essential to meeting the needs of our customers, so providing these team members with an improved career-path forward has numerous benefits.”
The new full-time GM employees will enjoy a variety of benefits over their previous hourly employment status, including health care with both dental and vision coverage, as well as company contributions to a 401(k), life insurance, and profit sharing.
According to the automaker, General Motors employs more total U.S. workers than any other auto manufacturer, with over $24 billion invested in U.S. manufacturing efforts in the last decade. “Today’s announcement affirms GM’s continuing commitment to a strong U.S. manufacturing base,” Johnson said.
The wage increases, improved benefits, and profit sharing opportunities for the new full-time GM employees are a direct result of the negotiations held between the United Auto Workers (UAW) and General Motors during the recent 2019 General Motors strike, which took place between September and October of last year. The strike involved nearly 50,000 UAW union members, who staged walkouts around the nation following the expiration of the union’s previous labor contract with General Motors. The strike resulted in numerous setbacks with regard to product launches, production delays, parts availability, and development delays, and was estimated to have cost GM upwards of $50 million to $100 million per day.