Detroit, Michigan – General Motors and the United Auto Workers Union (UAW) have come to a tentative contract agreement, the first set of negotiations since GM’s emergence from bankruptcy. The UAW leadership has voted to recommended the agreement to local unions, which will vote on ratification.
“In these uncertain economic times, we were able to win a tentative agreement with GM that guarantees good American jobs at a good American company,” said UAW president Bob King. “Our members made great sacrifices to save GM when the auto industry and the American economy were on the brink of collapse. As a result of this tentative agreement, UAW members will share in the company’s success.”
Jobs, investment and product guarantees in the tentative agreement include a reopening of the plant in Spring Hill, Tennessee with the production of two midsize vehicles; a new transmission program in Warren, Michigan; a new engine program in Romulus, Michigan; a full shift and a new midsize pickup program in Wentzville, Missouri; castings for the next-generation engine program at Saginaw, Michigan; a next-generation full-size pickup in Fort Wayne, Indiana; and a compact vehicle at a plant yet to be determined.
The agreement increases wages for entry-level workers to $19.28 over the terms of the agreement, along with $5,000 annually in tuition assistance, additional benefits and job protections. It also includes a $5,000 signing bonus, a redesigned profit-sharing plan that will guarantee employees a minimum of $3,500 annually, and awards for meeting quality targets.
The UAW represents approximately 48,500 GM workers in the United States.