GM commits to spend $8.Trio billion, upgrade twelve U.S. plants under UAW pact
GM’s Janesville, Wis., plant slated to close for good, UAW memo shows
DETROIT — The UAW`s tentative labor contract with General Motors includes a commitment to spend $8.Trio billion over four years on upgrades to twelve U.S. plants, along with the union`s very first significant wage increases in a decade and an $8,000 signing bonus to persuade workers to support the package.
The union said the $8.Three billion in investment would «create and/or retain» more than Trio,300 jobs.
About $6.Four billion of the planned outlays have previously been announced by GM. The investment «is designed to ensure optimal utilization of the company`s U.S. facilities and provide job growth,» the union said in its contract summary.
The details regarding future product investments were skinny relative to past contracts, and mostly a rundown of spending earmarked for new-vehicle programs that GM has already disclosed.
Among the largest outlays are $1.Two billion for a fresh paint shop at GM`s full-size pickup plant in Fort Wayne, Ind., and $1.Four billion for an expansion of the Arlington, Texas, plant where the company produces large SUVs.
The company also will suggest buyouts worth up to $60,000 to up to Four,000 eligible UAW members who agree to retire inbetween Feb. One and May 1, the union said, in a stir aimed at offsetting the added stationary labor costs from the wage increases.
UAW President Dennis Williams said the retirement incentive would compensate workers who had to take concessions in 2003, two thousand seven and 2009.
Profit sharing formulas under the proposal could pay off for UAW members at GM. The company’s UAW workers will get $1,000 for every $1 billion in North American profit. GM North America has posted $8.Trio billion in profit in the very first nine months of 2015.
More than one hundred local union leaders gathered here Wednesday to review terms of the tentative agreement, and agreed to submit it for a ratification vote by GM`s 52,600 union-represented workers.
Workers at local unions could begin voting as early as Friday, with a final result possible by late next week.
«We secured better pay, a clear path to traditional wages for all current members and commitments to keeping jobs and product here,» Williams said in a statement.
After the union announced the tentative pact late Sunday, GM in a statement called the deal «good for employees and good for the business.”
The tentative agreement with GM closely goes after the pattern set by the union`s fresh four-year contract with Fiat Chrysler Automobiles, which was ratified last week.
It provides a path for entry-level, so-called Tier two workers at GM to get to the top pay scale earned by Tier 1s through an eight-year ladder of pre-determined annual raises, until they reach utter wages of $30 an hour. The top wage for Tier 2s under the two thousand eleven contract was about $Nineteen an hour.
About twenty percent of GM`s workers today, or toughly Ten,500 employees, fall under the Tier two wage scale.
The GM contract would extend to Tier two workers the same health care benefits that Tier one employees receive, including total dental and vision coverage and no deductibles or co-insurance. It also extends health coverage to improvised workers.
Legacy Tier one workers — about eighty percent of GM`s union workforce — will receive a four percent wage increase in the very first and third year of the contract, along with a four percent lump sum in the 2nd and fourth year.
The $8,000 signing bonus will go to both Tier one workers and Tier two employees, the unions said. Fiat Chrysler Automobile’s Tier one workers received a $Four,000 ratification bonus, while second-tier workers got $Trio,000.
The ratification bonus also is a big leap from the $Five,000 that GM workers collected for signing their last contract, in 2011, potentially smoothing the path to ratification by UAW workers as early as next week.
Under the pact, workers also will get a $500 annual bonus when the company hits product-quality targets. Hourly retirees will receive a $500 bounty card under the proposed pact.
GM commits to spend $8
GM commits to spend $8.Trio billion, upgrade twelve U.S. plants under UAW pact
GM’s Janesville, Wis., plant slated to close for good, UAW memo shows
DETROIT — The UAW`s tentative labor contract with General Motors includes a commitment to spend $8.Trio billion over four years on upgrades to twelve U.S. plants, along with the union`s very first significant wage increases in a decade and an $8,000 signing bonus to persuade workers to support the package.
The union said the $8.Three billion in investment would «create and/or retain» more than Three,300 jobs.
About $6.Four billion of the planned outlays have previously been announced by GM. The investment «is designed to ensure optimal utilization of the company`s U.S. facilities and provide job growth,» the union said in its contract summary.
The details regarding future product investments were lean relative to past contracts, and mostly a rundown of spending earmarked for new-vehicle programs that GM has already disclosed.
Among the fattest outlays are $1.Two billion for a fresh paint shop at GM`s full-size pickup plant in Fort Wayne, Ind., and $1.Four billion for an expansion of the Arlington, Texas, plant where the company produces large SUVs.
The company also will suggest buyouts worth up to $60,000 to up to Four,000 eligible UAW members who agree to retire inbetween Feb. One and May 1, the union said, in a budge aimed at offsetting the added motionless labor costs from the wage increases.
UAW President Dennis Williams said the retirement incentive would compensate workers who had to take concessions in 2003, two thousand seven and 2009.
Profit sharing formulas under the proposal could pay off for UAW members at GM. The company’s UAW workers will get $1,000 for every $1 billion in North American profit. GM North America has posted $8.Trio billion in profit in the very first nine months of 2015.
More than one hundred local union leaders gathered here Wednesday to review terms of the tentative agreement, and agreed to submit it for a ratification vote by GM`s 52,600 union-represented workers.
Workers at local unions could begin voting as early as Friday, with a final result possible by late next week.
«We secured better pay, a clear path to traditional wages for all current members and commitments to keeping jobs and product here,» Williams said in a statement.
After the union announced the tentative pact late Sunday, GM in a statement called the deal «good for employees and good for the business.”
The tentative agreement with GM closely goes after the pattern set by the union`s fresh four-year contract with Fiat Chrysler Automobiles, which was ratified last week.
It provides a path for entry-level, so-called Tier two workers at GM to get to the top pay scale earned by Tier 1s through an eight-year ladder of pre-determined annual raises, until they reach total wages of $30 an hour. The top wage for Tier 2s under the two thousand eleven contract was about $Nineteen an hour.
About twenty percent of GM`s workers today, or harshly Ten,500 employees, fall under the Tier two wage scale.
The GM contract would extend to Tier two workers the same health care benefits that Tier one employees receive, including utter dental and vision coverage and no deductibles or co-insurance. It also extends health coverage to makeshift workers.
Legacy Tier one workers — about eighty percent of GM`s union workforce — will receive a four percent wage increase in the very first and third year of the contract, along with a four percent lump sum in the 2nd and fourth year.
The $8,000 signing bonus will go to both Tier one workers and Tier two employees, the unions said. Fiat Chrysler Automobile’s Tier one workers received a $Four,000 ratification bonus, while second-tier workers got $Trio,000.
The ratification bonus also is a big leap from the $Five,000 that GM workers collected for signing their last contract, in 2011, potentially smoothing the path to ratification by UAW workers as early as next week.
Under the pact, workers also will get a $500 annual bonus when the company hits product-quality targets. Hourly retirees will receive a $500 bounty card under the proposed pact.