A look at the most important terms of the new UAW/GM contract
While the actual contract between General Motors and the UAW is likely longer than any sane person would want to sit down and read, we can pull out the key factors that caused the two parties to come to terms. General Motors wanted to avoid giving the workers mandatory annual raises because in years where the company struggles, being forced to hand out raises 50,000 workers can further complicate a bad situation. The automaker hoped to use massive bonuses in lieu of annual raises and with respect to that angle, GM got what they wanted. However, in getting the UAW to agree to a lack of required annual raises or cost of living raises, GM had to offer record signing bonuses, a minimum wage increase, lump sum cost of living bonuses from 2012-2014, a $3,500 profit sharing bonus in 2012, added non-cash benefits, and $2.5 billion worth of improvements to US plants – expected to create or preserve around 6,400 jobs.
Major terms of the new GM/UAW contract, effective immediately upon signing and expiring in 2016
The General Motors UAW workers will reportedly receive a $5,000 signing bonus when the new contract is finalized and approved by all plus a profit sharing bonus of no less than $3,500 in the first quarter of 2012. On top of that, the workers will receive an addition bonus of $250 if certainly quality goals are met at year’s end. Profit sharing is expected to be the big gain for workers and the new contract limits those annual bonuses to $12,000.