Pay tied to profits in new GM-UAW contract
The UAW presidents will take those details to their respective locals and seek ratification from the rank and file after their 9 a.m. meeting Tuesday at the UAW-GM Center for Human Resources in Detroit..
Because the UAW successfully secured long-term job security, a promise from GM for at least 6,000 more jobs, 22% higher pay for new auto workers, protection of retiree pensions, better health care, a new profit-sharing deal based on profits instead of sales and a 2% signing bonus, it's likely to be an easy sell.
All told, GM and the UAW should have a contract in tow in about a week that includes plans to build and reopen plants, including one in Spring Hill, Tenn., that likely will be used to assemble the Chevrolet Equinox (pictured) and GMC Terrain. The plant, idled since November 2009, is best known as the first factory that made Saturns exclusively for 17 years. It also will authorize hiring for plants in Warren, Romulus and Saginaw, Mich., and in Wentzville, Mo., which the Detroit Free Press said today will add 2,000 jobs to assemble Chevrolet Colorado and GMC Canyon pickup trucks.
The giveback of signing bonuses will cost GM as much as $343 million, according to a Reuters analysis reported today. It is unclear whether the money would be taken off the top or reported as profits, then distributed.
The contract between the UAW and GM includes signing bonuses ($5,000) and profit-sharing checks (at least $5,000, maybe more) that give each unionized GM auto worker at least $10,000 in promised cash compensation besides their base pay, overtime and a continuation or improvement of health and other benefits.