GM’s proposed contract with the UAW contains rich wages and investments to safeguard jobs

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General Motors, the largest US automaker and the third biggest in the world, has pledged to the United Auto Workers union it would expand its US investment plan by another $1.9 billion across its plants in a bid to secure 3,300 union jobs. The details of the proposed four year contract released recently also contained increased pay and higher bonuses for the workers. Once they ratify the agreement, the company has pledged up to $8,000 to almost 53,000 UAW workers and around 4,000 UAW members could receive $60,000 early retirement packages. The deal also includes wage hikes for both veteran and recent hires at the carmaker’s US facilities. The veterans, who had not received a pay rise for a decade, would see 3 percent increases in two of the four years and lump sum payments for the other two. The employees hired after 2007, called Second Tiers, will also have a clear road to reaching the top, veteran pay grade if they stay with the company for eight years. The agreement also includes modifications to the profit sharing formulas – the workers will receive $1,000 for every $1 billion in North American profit – the unit made $8.3 billion in profit during the first three quarters of the year. According to UAW president Dennis Williams, both the proposed Gm contract and the ratified deal with FCA are “very rich agreements,” with rank and file members of the union set to begin voting on the contract swiftly. The pressure is now on Ford, which is the last remaining Detroit automaker that has not delivered a proposed contract. Via Reuters