GM Workers Garunteed $12,500

[Armstrong]

Last Updated: September 21. 2011 1:00AM .

 

GM's workers guaranteed $12,500 in bonuses in tentative UAW contract

Christina Rogers/ The Detroit News

 

The United Auto Workers union's deal with General Motors Co. offers workers $12,500 in bonuses over the next four years, saves or creates 6,400 jobs at U.S. factories, and awards $2- to $3-an-hour raises to entry-level workers.

 

Details of the tentative agreement were released Tuesday as top UAW officials met with local union leaders from across the country, who voted unanimously to recommend the contract's ratification. Rank-and-file members get their turn to vote over the next week.

 

"This contract really shows the auto industry is back," declared UAW President Bob King.

 

The agreement, reached late Friday, is being touted as good for both sides. The tentative four-year contract rewards workers whose concessions helped GM survive, while not burdening the automaker with additional fixed costs that would put it at a competitive disadvantage.

 

"This is a win for the auto industry in general," said Patrick Anderson, chief executive of Anderson Economic Group LLC in East Lansing. "It is a win for the UAW and GM, as well. The UAW has understood the biggest threat is the continued contraction of the industry and they don't want any further hemorrhaging of the work force."

 

GM was the first automaker to reach a tentative agreement; union leaders will announce in the next day or two whether Chrysler Group LLC or Ford Motor Co. will be up next.

 

The proposed deal, which must be ratified by GM's 48,500 hourly workers, includes $2.5 billion in plant investments and brings some work done in Mexico back to U.S. plants.

 

The investment figure is on top of a $2 billion commitment the automaker made in May to create or retain 4,000 jobs at GM factories nationwide.

 

As part of that commitment, GM will reopen its former Saturn assembly plant in Spring Hill, Tenn., which was idled in 2009 during its bankruptcy. Within the year, GM will add 500 workers at Spring Hill to build one midsize car and launch a second midsize car at the end of 2013, said UAW Vice President Joe Ashton, the union's top official representing GM autoworkers.

 

Other factories to benefit from the contract's commitments include the Warren transmission plant; a Powertrain plant in Romulus; a casting plant in Saginaw; and facilities in Wentzville, Mo., and Fort Wayne, Ind.

 

"One of our main objectives is jobs, and I think we met that objective," Ashton said. GM, however, will close its truck plant in Shreveport, La., as planned. Ashton described that as "probably the saddest part of this whole set of negotiations."

 

Holding the line

UAW leaders admitted there were tense moments at the negotiating table — typical in bargaining — but the UAW held the line on health benefits, even gaining some improvements. Retiree pension plans also are unchanged.

 

Workers won't regain cost-of-living increases or base pay raises; the controversial jobs bank that continued pay and benefits for laid-off workers wasn't restored either.

 

Instead, GM's factory workers will get a $5,000 contract signing bonus after ratification, plus a profit-sharing payout of at least $3,500 for this year (paid in 2012) and a $250 quality bonus if certain targets are met. They'll also receive an annual $1,000 "inflation protection" bonus each year of the contract.

 

"I believe the agreement is good not only for our members but for all working people," said Dave Green, president of Local 1714 in Lordstown, Ohio. "The fact that we're not taking concessions, that we're getting gains, that's a positive thing."

 

Green's membership will vote Saturday.

 

Under the tentative contract, entry-level or so-called tier-two workers, who earn $14-$16 an hour — about half the pay of veteran employees — will see their hourly wages boosted to $19.28 by 2015.

 

About 4 percent of GM's work force is made up of these workers, and upon ratification new hires will make $15.78 an hour and will get annual raises until they hit $19.28.

 

Buyout offers planned

The proposed agreement doesn't limit the number of entry-level workers GM can hire, but after 2015, they will be capped at 25 percent.

 

GM will offer buyouts of $75,000 to skilled trade workers who retire between Nov. 1 and March 31 and $10,000 for other eligible workers.

 

The move makes room for GM to hire new workers at the lower wage, which will help keep labor costs competitive — a condition of the 2009 federal bailout. King said 14,000 to 17,000 workers are eligible to retire.

 

Ratification expected

Art Schwartz, a former GM negotiator and now president of Labor and Economic Associates in Ann Arbor, thinks the contract will be ratified.

 

"It is an agreement where the company got what it wanted: no pay increases, COLA, pension increases or jobs bank," he said. "The UAW got good money for their people and some jobs."

 

Morning shift workers at Lake Orionsaid Tuesday theyhadn't seen many details of the tentative agreement, but they grudgingly accepted what little they knew.

 

They think the rank-and-file employees will approve the deal.

 

"We were hearing so many things about the bonuses and when the final figure came out, well, that wasn't too exciting," said Mark Filan, a 17-year GM veteran.

 

"We made a lot of sacrifices for a long time and the work didn't get any easier. So, the bonus was OK, but, there are a lot ofpeople whorememberall the things we gave up."

 

Michael Stimage, a 35-year veteran, predicted the contract will be ratified "because the economy is so bad."

 

crogers@detnews

 

(313) 222-2401

 

 

 

From The Detroit News: http://detnews.com/article/20110921/AUTO01/109210370/GM’s-workers-guaranteed-$12-500-in-bonuses-in-tentative-UAW-contract#ixzz1YZiBc3hE

[thintwowin]

If gm has a 3.5 billion dollar loss the last 2 quarters you can kiss $ 3,500 goodbye. The $250 x 4 is for quality that could be another $1000 gone. $5000 signing Bonus and 3 years of $1000 inflation bonus, so only $8000 guaranteed .

[Don't Tread on Me]

If gm has a 3.5 billion dollar loss the last 2 quarters you can kiss $ 3,500 goodbye. The $250 x 4 is for quality that could be another $1000 gone. $5000 signing Bonus and 3 years of $1000 inflation bonus, so only $8000 guaranteed .

 

 

My reading of the Highlights shows at minimum $12,500 and can be much higher. I understand your concerns, though, because of how the Teatard Republicans are trying to destroy our economy.

[ratatattat]

My reading of the Highlights shows at minimum $12,500 and can be much higher. I understand your conserns, though, because of how the Teatard Republicans are trying to destroy our economy.

 

Your an idiot.. you can't even spell

Edited September 22, 2011 by ratatattat

[Smooth Operator]

Your an idiot.. you can't even spell

 

 

Interesting, you changed the spelling of someone who posted and then claim they can't spell?

[Grim Reaper]

My reading of the Highlights shows at minimum $12,500 and can be much higher. I understand your concerns, though, because of how the Teatard Republicans are trying to destroy our economy.

 

 

It is amazing how the UAW can bargain all of these bonuses, keep benefits, get tons of work and many other improvements under the circumstances.

 

The IUAW are bargaining geniuses

[mikem12]

It is amazing how the UAW can bargain all of these bonuses, keep benefits, get tons of work and many other improvements under the circumstances.

 

The IUAW are bargaining geniuses

 

 

yes and from a company that has a no strike clause, if they do this well with GM I figure Ford, we will get $20k over the contract, cost of living and a maid service that comes in twice a week.

 

 

))

[DavzinSoCal]

Interesting, you changed the spelling of someone who posted and then claim they can't spell?

 

What's really interesting and actually pretty Funny is the guy accuses someone of not being able to spell But Mispells the first word of his little seven word sentence! Hahahaha!!!

Mr Spelling Bee; it's "You are" or "You're" an idiot! LOL

That's called an "Apostrophe". Look it up.

Oddly enough, he used an apostrophe in the word "can't". (for Can Not)

Anyways, this really did make me Laugh Out Loud!! Thanx :-D

[DavzinSoCal]

Your an idiot.. you can't even spell

 

 

You forgot the "e" and apostrophe for "You are" as in "You're" an idiot. LOL

[Sharp Shooter]

yes and from a company that has a no strike clause, if they do this well with GM I figure Ford, we will get $20k over the contract, cost of living and a maid service that comes in twice a week.

 

 

))

 

 

And Alan Mulally will pick each one of us up during the life of the agreement and drop us off at work.

[dividedwebeg]

Last Updated: September 21. 2011 1:00AM .

 

GM's workers guaranteed $12,500 in bonuses in tentative UAW contract

Christina Rogers/ The Detroit News

 

The United Auto Workers union's deal with General Motors Co. offers workers $12,500 in bonuses over the next four years, saves or creates 6,400 jobs at U.S. factories, and awards $2- to $3-an-hour raises to entry-level workers.

 

Details of the tentative agreement were released Tuesday as top UAW officials met with local union leaders from across the country, who voted . [/b]

 

"This is a win for the auto industry in general," said Patrick Anderson, chief executive of Anderson Economic Group LLC in East Lansing. "It is a win for the UAW and GM, as well. The UAW has understood the biggest threat is the continued contraction of the industry and they don't want any further hemorrhaging of the work force."

 

GM was the first automaker to reach a tentative agreement; union leaders will announce in the next day or two whether Chrysler Group LLC or Ford Motor Co. will be up next.

 

The proposed deal, which must be ratified by GM's 48,500 hourly workers, includes $2.5 billion in plant investments and brings some work done in Mexico back to U.S. plants.

 

The investment figure is on top of a $2 billion commitment the automaker made in May to create or retain 4,000 jobs at GM factories nationwide.

 

As part of that commitment, GM will reopen its former Saturn assembly plant in Spring Hill, Tenn., which was idled in 2009 during its bankruptcy. Within the year, GM will add 500 workers at Spring Hill to build one midsize car and launch a second midsize car at the end of 2013, said UAW Vice President Joe Ashton, the union's top official representing GM autoworkers.

 

Other factories to benefit from the contract's commitments include the Warren transmission plant; a Powertrain plant in Romulus; a casting plant in Saginaw; and facilities in Wentzville, Mo., and Fort Wayne, Ind.

 

"One of our main objectives is jobs, and I think we met that objective," Ashton said. GM, however, will close its truck plant in Shreveport, La., as planned. Ashton described that as "probably the saddest part of this whole set of negotiations."

 

 

 

From The Detroit News: http://detnews.com/article/20110921/AUTO01/109210370/GM’s-workers-guaranteed-$12-500-in-bonuses-in-tentative-UAW-contract#ixzz1YZiBc3hE

 

I could care less about the bonuses and more about these product commitments

[boltron]

I could care less about the bonuses and more about these product commitments

 

 

I would like both.

[Avenger]

I would like both.

 

 

There is a good possibility that we will get both. But, you need to look at work in plants as a higher priority.

[Skilled1]

There is a good possibility that we will get both. But, you need to look at work in plants as a higher priority.

 

We will know shortly