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UAW-GM contract: What the UAW didn't get for its auto workers from GM

The new contract for auto workers between the UAW and General Motors Co. should get ratified in record time and by an overwhelming margin because the UAW got a lot from GM: At least 6,400 more union jobs, job security, more products to build, plant reopenings, auto workers' first raises in eight years and $5,000 profit-sharing checks. But there were some people who didn't benefit from this four-year contract.

General Motors' retirees will derive nothing from the deal, at least not immediately, and that's significant because there are about 400,000 of them. In these negotiations the UAW did not recapture any benefits for them that they used to have with GM.

There might be a silver lining: Health-care benefits could be brought back at a later date via the UAW Retiree Health Care Trust, the Detroit Free Press reported today. But if that comes to pass the cost would be borne by current auto workers, not GM. About $500 would be siphoned from each active auto worker's profit-sharing check next March to underwrite that expense if active UAW members from GM vote to approve the giveback. Voting to ratify the contract started Thursday and ends on Wednesday.

Tier One auto workers, veterans who earn about $118,000 per year in pay and benefits already, get job security and profit-sharing checks. But, unlike Tier Two entry-level auto workers who will get raises of up to 22%, the more experienced auto workers will get no pay raise of any kind in any of the next four years. The GM auto workers also will get no COLA or merit raises.

Veteran skilled-trades workers have targets on their backs. GM aims to thin the herd with incentives it is offering to such workers who are eligible for retirement so it can pay new people considerably less for doing the same work. Skilled tradesmen typically make slightly more per hour than the average auto worker, so GM is offering $75,000 in buyout money to anyone in this category who wants to go away. It amounts to about an extra year's pay, minus benefits.

The creation of jobs benefits the U.S. workforce, but not the North American workforce, not really. Mexican workers are big losers in this deal. Many of the "new" jobs shift to America from Mexico, which is also North American. So while it is a net gain for GM workers in the United States, it is not a gain at all for North America, per se, because the true impact is a cannibalization of jobs in North America, not a creation of them.

Voting to ratify the contract at UAW sites around the country ends Wednesday. At least 70% of GM UAW workers must vote for the result to count.

Hawke Fracassa covers the auto beat from Detroit for TN. You can reach him at hawkefracassa@aol.com or (248) 747-1550. Or follow him on Twitter @HawkeFracassa.

Image source: Wikipedia

Comments

I think its BS that the retirees didnt get anything from this deal, I have always bought and supported GM because my dad retired from there, but I will never buy another 1!!! They have cut his check over $300 a month. Everyone can say what they want but the retirees have gotten GM to where they are for many years and get no Thanks for it. COMPLETE BS!!!!!
The cut in the retiree benefits is enough to have us sit down a cry. $5,000 before one cent is covered medically by GM. To add insult to injury, they dropped our dental benefits, eye care and prescription meds. This in 4 years will have us in a nearby bankrupcy court. My husband gave GM 28 years of his life to this company. This is the fine thank you we have gotten from them as they are now making their way back up the corporate ladder simply forgetting us. I'm sick and health sick over this. We have canceled more Dr appointments and very serious tests because we just can't afford this anymore. Anybody out there who has faced the same problem? I'l bet you we are in the millions. There has got to be something we can do to protect our health and still have dinner on the table each evening. I never believed this could happen to us, yet here we are... So Sad.....
Yes, there are 400,000 of us out there, I'm a widow of GM worker of 30 yrs, who died from lung cancer working in a assembly plant tin Tarrytown NY, each worker fought for something for retiree's, cause one day they too would retire. My GM pension is a whooping $500.00, now they take away our Christmas bonus, $325.00 and dental, vision and we have to pay for health care, well all I can say is there are 400,000 out there that buy cars, my Chevy Malibu will be traded in for another brand, maybe KIA or Honda, I'll never support GM as long as I live, oh and the stock that is now worthless, because of bankruptcy, how many retiree's lost hundreds of thousands of dollars for that, and now GM says its made 5.7 BILLION..........I hope that all GM workers enjoy their $13,500 bonuses, remember one day they too will retire........what goes around comes around.
DEAR ANONYMOUS I VOTED NO---------------- BUT U HIT THE NAIL ON ITS HEAD THANKS TO THIS CONTRAC WHAT LOYALRETIREES THAT ARE LEFT WILL BE DOING AS YOU SHOPPING ELSE WARE
Your right we retirees got nothing as in the last 5 year contract. Its always been this way even when I was an active production worker, the skilled trades always came out good with their raises on top of all the money they made working 7 days a week if they wanted. They should since they set in the nice cool clean break areas all the time unless something broke down. Im unhappy we retirees dont get a raise or even a Xmas bonus. The lady was right about getting only $500 because when a retiree dies our spouse gets practially nothing to bury us and has to live on such a low pay. If the woman is not least at 60 she has to go back to work finding a job flipping burgers or a Walmart Greeter. The UAW officials wants to create more jobs because it means more money in their pockets from Union Dues. Im sure the "Union Officials" that makes over $100,000 a year will give their selves a hefty raise.!!
My husband also worked at General Motors in Tarrytown and died last year of lung disease. His coverage shrank and so did the pension. He lived long enough to collect his first social security check only to be taken back because he died on the 20th of the month. My heart is broke.
As a GM retiree I am disgusted that as usual we are put on the back burner. My retirement is slowly dwindling with all the cuts and medical bills. All I can do is hope I'm gone before the retirement savings run out. The government has let us down, GM screwed themselves and it's workers and now the UAW screwed me also. So I gotta go where I can to save a buck!...........WOW those imports are looking good now! Those Kia's are priced right into a retirees low income!!! Hope you adjust well in this new market GM and to my fellow GM active workers....better start saving money in those high priced mattresses cause your gonna be where I am in a few years......LOL!
I alway wanted more for the retirees getting full retirement pension and scoial security for life time of retirement ,but the unions always wanted more money and still want more money,witch causes everything to go up in price, thats way it very hard today.thanks to you are lovely union for kicking us backwords.
AGAIN the UAW contract created a Loss for retirees. King, head of the UAW, said any increase for retirees was impossible because of the ratio of retirees compared to those presently working. Bullsh**! Active workers are getting Massive signing bonuses. The Massive signing bonuses could have been pared back by a very small amount so retirees could have gotten even a small increase in their pension to help somewhat to keep up with all the cost Increases the retirees have to pay for due to the UAW's selling them out. Thanks to King and the entire Union negotiating staff, retirees will not be getting anything positive from this contract. The first time, besides when GM filed for bankruptcy, in decades that there was no pension increase! Notice that retirees pensions and benefits have decreased since the union took over the Pension & Health Care plans from the company. The union clearly has no business sense. Current active workers take note that you will also get the shaft when you retire, if the company is still in business. The company savored in Victory from the Union with this contract. Current employees and retirees got screwed!
Yep, I with the others. A raise would have been nice, but losing the Christmas bonus and giving the active members $5000 - they wouldn't even have this job if former UAW members hadn't fought for fairness. I WAS getting a Cruize in the spring, but like the others I will head straight to the closest KIA dealer now!!!!!!
Not only did retirees have their Christmas bonus taken away; anyone turning 62 from now on has lost the age creep. Which is equal to taking a 5% pay cut. Before this contract retirees would recieve their supplement pay until they were 63. That way they could draw 80% of their SSI or they could draw both the sup.and SSI (at 75%) for the year to make up the 5%. The uaw gave that away. Now retirees have to start drawing SSI at 62 at 75% of full SSI. The uaw is getting just like the bunch of @^%# in Washington. The retirees can't vote so we can screw them any way we want.Take away from them and they can't do any thing about it because they have no voice. THEY CAN'T VOTE. I did not expect to get a raise but I did not think we would lose so big again this time. How long and how much do we have to give back. We have given until it hurts. Thanks alot King and uaw.
I worked for GM for 38 years before I retired with benefits that 90% of the folks in the world do not have while working let alone when retiring. I am ashamed of the comments that are listed here from some of these UAW retirees. You remind me of the greedy 1% who can never get enough that we all hear about, who by the way, voted against helping GM at all. Don't blame the UAW for our losses, blame the union members who voted for Republicans who did this to us all. GM wouldn't even be in existance today if it were up to them. Think about it! Where would our retirements be today if GM would had gone under completely? Be thankful for what you have.
I'm a 34 year GM retire and I want to thank GM and the UAW for taking our Christmas bonus away! I know once they take something away what will be next!
35 YEAR RETIREE HERE, A UNION IS ONLY AS GOOD AS IT TREATS ITS RETIREES. UAW YOU THREW US 400,000 UNDER THE BUS, WHY? BECAUSE YOU KNEW WE HAD NO VOTE. SHAME ON YOU!! OUR HEALTH CARE TRUST IN UAW HANDS, LOL.....GOD SAVE US
how do stop the union dues ,kia here i come
Why Retire? You will end up losing like the rest of us. And you won't have any say in it.
I was a 30 year retiree from GM. I retired in 2008. Lansing, Mi.. Had all my bills figured out so at 30 years I could afford to retire. This was my set income, basically forever. Then we lost our dental and vision., and a" STUPID " one term republican governor. Decided to tax my pension. Now I can hardly make ends meet. Then the new contract says we won't get anything more (no raise- benefits) for at least 4 years. What the h#$%. I devoted my life to GM and drove nothing but GM vehicles. I know that there are 400,000+ retirees so they had to sell us short. BULL... I am not here to bad mouth GM. but like I said What the h#$%. . They wanted us old dinosaurs to retire to help GM ,on the two tier wage for new hires. We done everything right ,,to get screwed.
You know what sucks... We couldn't even vote. No wonder we got screwed. That has to change.
Thanks UAW for a bunch of nothing. I worked 30.3 years for GM and have seen alot of my Brothers and Sisters Pass on with Cancer and Lung problems and many other sacerfices to make conditions of the past go away. And a guy like KING comes along and Caves in to GM and Fails to remember those that made the union label what it is. If you ask me he is a poor excuse for leadership. Thanks for remembering us..............What comes around goes around. and don't forget it. / Ron Layman Sr. Toledo Power Train 10-06-69 to 10-06-99
If the 400,000 Retirees would stop buying GM products, then what would happen to GM? If they can take away from us, Then why not take away from them. We might not have any say so now, but we do have say so on what auto we can buy!! Also the 400,000 retirees have family members that buys GM products! What would happen if this stopped and they went with another brand? We can fight back!!! If they can take away from us then why not take away from them. Think about it Retirees. They took away our Christmas bounes, Dental, Vision, & Raises. They have upped our copays and everything else. Walmart has better benefits for there retirees than GM. Everything we have fought for is GONE!!! We helped GM by retiring early so it could save them money, but what help have they given us? Nothing but keep taking away from us what little we do have left. It is time for the Retirees to fight back!!! Lets all buy KIA! Tell all your family & Friends!! Then lets see what happens.......
My comment is ... my husband worked his butt off for 32 years for this company.It is such B.S the way they have treated their retirees... and to look at the new contract 5,000.00 sign in bonus plus 1,000.00 here and there... I feel these were BRIBES as they know folks need monies and what better was to persuade them into signing a contract.I agree with many others, we retirees shouldn't buy any GM car or truck.. plus we are planning to stop paying union dues. it may be only 2.00 but if there is 400,000 of us then they making monies off us big time. That makes me so sad to think that we can not afford to buy gifts for our grandkids this year. 700.00 cost of living doesnt seem like much to some higher up folks in General Motors but you really screwed your retirees. I pray that anyone planning to retire from this awful place , please READ ALL THIS AS YOU WILL BE IN THIS BOAT WHEN YOU RETIRE AS THEY DONT GIVE A RATS BUTT ABOUT ANYONE BUT THEIR SELVES!!!!!!!!!!i
I am a retiree from General Motors and never thought that GM would cut our benefits ,the older i get , General Motors cut the life insurance more . most of our health problems, comes from working in there plant, now they take away your health benefits and Christmas bonus . like we don,t need the little extras money ,and give it to the new workers, lets be fair here, the union is not for us ,they are brought and paid for by GM.
Badgercare recipients have better healthcare benefits than those of GM retirees. Our insurance doesn't pay for preventative or routine care, no chiropractor's, dental, vision, physical therapy and now most of our medications. That's sad and I think it says a lot for our country. People work 30 years for a company, earning these benefits and contributing to these things for it all to be taken away. To bad we don't qualify for Badgercare as most of our children are now adults, we'd actually be able to take care of ourselves!
After almost 30 years I WILL NEVER BUY ANOTHER UAW OR FORD AUTO.KIA FOR ME..After all that's what the UAW and Ford did to my retirement KIA--Killed In Action..So laugh all of you current fools who voted for this contract, greedy asses I hope it's all gone when it's your turn. I am, making a personal task to keep everyone I know FROM buying American until you all keep your word and return OUR BENEFITS ,I HOPE YOU ENJOY YOUR $5000 while we , on minimum support have even more health care removed..DROP DEAD IN THE PLANT, YOU DESERVE TO! Oh,,and screw these idiot humna checks..gosd i hate them and every ass who forces us to use them ..die with yuour idiot voters
I understand about the retiries my mother and father motherin law and father in law all are retiries my wife is an active employee we have given money back in wages for the past 9 years about 2.00 an hour plus no cola for 6 years so the talk and frustration about your active brothers and sisters is unfounded we are trying to do what we can to help. you need to be frustated with the piss pour job the so called union has done for everyone. We give to retiries every hour we work so dont shoot the brothers and sisters that give. and last is kia the only @***%$ ing vehicle you would buy or is a kia rep. posting all this
I DID WORK FOR GM AND RETIRED WITH 32 YEARS. GM HAS GONE BACK TO BEING THE NUMBER ONE AUTO MAKER IN THE WORLD. RETIREES OVER THE YEARS HAVE WORKED HARD , THE ASSEMBLY LINE DOES NOT SLOW DOWN WHEN YOU GO TO WORK TIRED OR SICK. EYE.DENTAL, MEDICARE PART B AND OTHER BENIFIT LOSSES HAVE HURT US BAD. THE CAUSE OF THIS IS MISS MANAGMENT BY GM. OUR UNION WAS ASLEEP AT THE WHEEL WHILE THIS GOING ON. IF ALL THE UNION DUES WE PAID WERE PUT TOGETHER WE COULD HAVE HIRED A TOP NOTCH LAW FIRM AND WE WOULD HAVE MORE THAN WE DO NOW. FORD WORKER REJECTED THE CONTRACT AFTER UNION OFFICIALS HAD APPROVED IT. THEY STILL HAVE THOSE BENNIES, DOES NOT THAT TELL YOU SOMETHING.THE OBOMA ADMINISTRATION DIDNT SAVE US THEY DISSECTED US ON THE BACK OF THE RETIREES..
Over 400.000 Non-active GM retirees there are more of you than there are active GM workers and with those numbers you would think that more not less would be done for those of you but simly put that is not the case and that is a damn shame after working for GM and weeping the benifits of your labor having the best of the lean years and the many benifits one would think that you would have done more to secure those of you in your golden years but you only thought of yourself you got the wage increases you got the profit sharing you got the golden parachutes you made the deals that covered those of us to come after you you made these foolish contracts that gave away the baby with the bathwater you sat at the table and made the deals to give away each and everyone of the earned benifits that those of you enjoyed you thought little if any at all about those to follow after you in working for these companies you cared absolutely nothing about the units of solidarity you made it possible for all those two and three tier workers to never know what it is like to recieve a fairs day pay for a fair days work you only thought of yourself you said nothing when you sat at the table and made those deals that allowed the fatcats to pay your sons and daughters less than you and they did the same job right next to you but you made sure that your pay increased while mine was decreased with No benifits but look who is suffering now you are now apart of the growing non active workforce and your buddies are taking it to you and that 400.000 you suddenly feel that you are losing your entitlements but you thought nor cared about others now its you if only you had fought for others just maybe someone would fight for you and that 400.000 Noo you are getting back what you deserve its your turn now how does it feel to be sitting on the otherside of the table and not having a say so? Enjoy your retirement after all you earned it.
When will the retirees ever get a cost of living allowance on their monthly pension checks?
My Husband worked for GM for 38 years, he was GM true and blue and worked long hours at the tech center in Warren, Mi. As most people don't seem to realize, your pension is part of your wages, paid for by employees. At only 55 he died of bile duct cancer, there is only one way to get bile duct cancer in the US. Exposure to substances now outlawed. Since he only worked for GM, that is where he was exposed. This has been confirmed, no rumor; however, my recourse in nill. All the money we put into stocks, gone; as his widow at 62 I still work 40-50 hours a week, just to "make it". And by the way, at the tech center; employees are "dropping like flies", I quote from employee friends of my husband. What do I get, not much, I lost our home of 18 years, only owed 6 more years, would have been paid off when he was 62. My health is shot, and what did I just get $38 from the litiagation, $1 for each year he worked, what a slap in the face. Whats next, I imagine, the little I get now will be cut out with this new buy out. Thank you GM, you never appreciated your loyal employee that virtually gave his life for you
My Husband worked for GM for 38 years, he was GM true and blue and worked long hours at the tech center in Warren, Mi. As most people don't seem to realize, your pension is part of your wages, paid for by employees. At only 55 he died of bile duct cancer, there is only one way to get bile duct cancer in the US. Exposure to substances now outlawed. Since he only worked for GM, that is where he was exposed. This has been confirmed, no rumor; however, my recourse in nill. All the money we put into stocks, gone; as his widow at 62 I still work 40-50 hours a week, just to "make it". And by the way, at the tech center; employees are "dropping like flies", I quote from employee friends of my husband. What do I get, not much, I lost our home of 18 years, only owed 6 more years, would have been paid off when he was 62. My health is shot, and what did I just get $38 from the litiagation, $1 for each year he worked, what a slap in the face. Whats next, I imagine, the little I get now will be cut out with this new buy out. Thank you GM, you never appreciated your loyal employee that virtually gave his life for you

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