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

Aaron Cole
by Aaron Cole

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.

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  • Mikey Mikey on Oct 29, 2015

    So if I'm reading, and comprehending, this correctly. GM readily agreed to a sweeter deal than what was negotiated at F.C.A ???. Steps have been taken to dump "tier two" Sounds good...I see this ratifying at 80 percent or better.

  • Mikey Mikey on Oct 29, 2015

    60 K go away is peanuts. Its just a way to give the "fence sitters" a push. For the most part, its quite effective.

    • 28-Cars-Later 28-Cars-Later on Oct 29, 2015

      Its sounds like GM is really shelling out some cash on this aside from early buy out: 6,600 in profit sharing, 1,000 May bonuses, future raises, and not touching the healthcare which is a hot button item here.

  • Xeranar Xeranar on Oct 29, 2015

    Sounds like the UAW got a good deal and managed to get extensive plant investment which is a boon for the local economies of the plants and a good anchor to keep them in the US. The cater wailing has begun amongst the B&B but this is an important investment and frankly I suspect the big three see the writing on the wall of the next decade as the extreme pro-corporate views are likely to be ramped down in favor of a more moderated view and pro-union resurgence.

  • Carguy Carguy on Oct 29, 2015

    It's odd that in an era of record corporate profitability, cash holdings and share value, that some people view workers benefiting from business success as a bad thing. Workers have been on a losing streak for the past 40 years with stagnating wages, diminishing benefits and longer work hours so a small win is probably good news.