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.

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United Auto Workers at Fiat Chrysler Automobiles facilities will vote next week on a newly proposed contract to cover 40,000 workers, the Wall Street Journal reported.

Workers will have until Oct. 20 to review the proposed deal, which was reached last week before a threatened strike. According to the report, workers will vote on the deal Oct. 20-21. Roughly 65 percent of workers reportedly voted down the first deal between the automaker and the UAW because of concerns over its tiered pay structure, health care co-op and lack of communication from union leadership. (Read More…)

While the UAW wants to “bridge the gap” between Tier 1 and Tier 2 employees, Ford and General Motors want to have a Tier 3.

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The two-tier wage system in place now may come down in this year’s UAW negotiations with the Detroit Three. If so, Tier 1 may be the dead man walking.

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