GM promises UAW $1.9 billion for US operations, 3,300 union jobs
General Motors promised The United Auto Workers union a $1.9-billion investment in US operations that would add 3,300 union jobs in the country under a proposed four-year contract.
According to CNBC, the contract includes higher wages and more bonuses of up to $8,000 to $53,000. This is such a good news for UAW workers, especially that veteran employees in the union have never experienced an hourly pay raise in ten years. The deal also includes a $60,000-worth of early retirement packages for 4,000 UAW employees who will retire from Feb 1 to May 2016. The contract provides salary increases for both veterans and newly hired workers. Temporary workers are going to get $2,000 signing bonus and get health care coverage.
CNN Money reported that the UAW has long been demanding for additional jobs in the US, especially that the automaker has expanded its operations overseas. Recently, GM announced plans to invest $3.6 billion in Mexico.
UAW's GM council approved the contract Wednesday. Now, it is up to the UAW's GM workers to vote. It involves all the 52,600 unionized workers under GM.
According to the Detroit Free Press, if the contract is ratified, workers' pay scale would go up to $19.28 per hour from $15.78. It will also continue to a new wage progression that begins at $17 per hour up to as much as $29 per hour.
Employees hired since 2007 will get a chance to earn top wage for veterans as long as they stick with the company for eight more years. Profit sharing formulas could give UAW members at GM an attractive way to earn. Union members working at GM will earn $1,000 for every $1 billion profit the company earns in North America. This is a good deal considering that GM North America had a $8.3 billion in the first three quarters of this year. UAW rank and file members will start voting on the agreement in the following days.