General Motors-United Auto Workers Deal Includes Billions for Plants, Bonuses For Workers

A proposed contract between the United Auto Workers and General Motors will eventually end a tiered pay system divided between veteran auto workers and employees hired after 2008, and provide annual bonuses and substantial raises for the first time in a decade. The automaker has offered an $8,000 signing bonus to approve the deal.

The proposed deal outlines the automaker’s $8.3 billion investment in American plants — above its $6.4 billion improvements already announced — over the life of the contract. The deal was posted on the UAW website Thursday.

The deal for GM workers, which is sweeter than the deal hammered out between the UAW and Fiat Chrysler Automobiles, will be reviewed and voted on in coming weeks.

Newer-hired workers at GM plants, so-called Tier 2 workers, who’ve worked for 8 years would eventually reach Tier 1 status and pay, although those workers would have different retirement plans. The UAW announced in its plan that it would buy out 4,000 eligible, early retirement workers for $60,000 to help pay for the new deal.

Workers would receive annual profit sharing bonuses under the new deal that would pay workers incrementally for every $1 billion the automaker brings in. Last year, workers made roughly $6,600 in annual profit sharing bonuses, according to the Detroit Free Press.

The proposed deal also leaves unchanged GM employees health care program, which was a major sticking point between FCA workers and the first deal, which they ultimately rejected.

Under the proposed deal, workers at GM plants would receive annual raises — the first substantial raises in a decade — and $1,000 bonus payments in May.