By on October 29, 2015


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.

Get the latest TTAC e-Newsletter!

13 Comments on “General Motors-United Auto Workers Deal Includes Billions for Plants, Bonuses For Workers...”

  • avatar
    Master Baiter

    So instead of banking their new-found profits to allow them to weather the next economic downturn, GM’s workers are demanding raises and bonuses? Detroit can dry up and blow away in the wind for all I care.

  • avatar

    It’s still economically justified to pay UAW workers $60K to go away? Surely there’s a typo, and it is GM that wants to buy them out, not the UAW. Either way, big severance packages speak to failure no matter how you write your press release.

    I’m guessing GM’s befuddled customers would prefer to see some of this money going to fixing the fire hazards they call cars on the first try instead of the forth.

    • 0 avatar

      “big severance packages speak to failure no matter how you write your press release”

      No, it speaks to increasing levels of automation, hence the accompanying $8B investment in manufacturing plants.

  • avatar

    I remember the old days when the UAW negotiations and contract outcomes were big news and had a follow-on effect to a much of the US economy. Now they’re pretty much a niche item for biz nerds.

  • avatar

    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.

  • avatar

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

    • 0 avatar

      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.

  • avatar

    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.

  • avatar

    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.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • dal20402: Never going back. Once you’ve spent some time with an EV, ICEs start to feel slow-witted, clumsy, and...
  • B-BodyBuick84: This might sound like an absurd suggestion coming from a man with a username such as mine, but...
  • gstewartbxl: I remember the Rambler Hornet, growing up in South Africa. American branded cars were very popular up...
  • 28-Cars-Later: @Arthur I’m still skeptical long term but I don’t think the CVT is the death sentence it...
  • 28-Cars-Later: I don’t particularly believe J.D. Power without knowing whose been writing them checks of late....

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Jo Borras
  • Mark Baruth
  • Ronnie Schreiber