New Car Deal UAW Provides Details of Pact With GM
During a press conference at UAW headquarters in Detroit after those meetings, UAW president Ron Gettelfinger said the agreement has “unprecedented product guarantees” and a moratorium on outsourcing.
Here are official details on the tentative agreement between the UAW and GM:
GM agrees to new-vehicle programs at 16 U.S. plants.
GM will initially fund the UAW’s health care trust fund with $29.9 billion, with an additional $5.4 billion in future years.
GM will provide the trust an additional backstop of as much as $1.6 billion over the next 20 years.
Workers get a $3,000 signing bonus to approve the contract.
Instead of pay raises, UAW rank and file get bonuses equal to 3 percent, 4 percent and 3 percent of their annual pay during the second, third and fourth years of the contract.
New hires in noncore, nonproduction jobs would get paid between $14 and $16.23 an hour.
New hires get a 401(k) plan instead of the traditional UAW pension plan. GM will create a cash balance defined benefit plan for entry-level workers, by which it will deposit 6.4 percent of workers’ wages into a portable retirement plan, which will accrue interest tied to the 30-year U.S. Treasury bond.
GM agrees to bring in-house 3,000 jobs that now are outsourced to contractors.
GM agrees to hire 3,000 temporary workers as full-time hourly employees.