After weeks of negotiations, the United Auto Workers (UAW) have reached a tentative agreement with General Motors (GM) on a new contract. The agreement, which still needs to be ratified by UAW members, includes some notable highlights that will affect workers and the company alike.
One of the major points of contention during the negotiations was the future of GM`s plants in the United States that had been slated for closure. Under the tentative agreement, GM will invest $9 billion in its US operations over the next four years, including reopening the Detroit-Hamtramck assembly plant and converting it to build electric vehicles. The company will also boost production at plants in Ohio and Michigan.
Another key feature of the agreement is the creation of a path for temporary workers to become permanent employees. Currently, many workers at GM are hired on a temporary basis and do not receive the same benefits as permanent employees. Under the new contract, temporary workers will be able to become permanent employees after three years of service.
In addition to plant investments and improving job security for workers, the tentative agreement includes wage increases for both permanent and temporary workers. Permanent workers will receive 3% wage increases in the second and fourth years of the contract, with a 4% lump sum payment in the first and third years. Temporary workers will receive a signing bonus of $3,000 and wage increases of 2% in the second year and 2.75% in the fourth year.
The agreement also addresses healthcare costs for workers. Under the new contract, workers will be able to maintain their current healthcare coverage with no additional costs to themselves. The contract also includes a provision for a lower-cost health insurance plan for new hires.
Overall, the tentative agreement between the UAW and GM addresses some of the major concerns of workers and provides some stability for the company over the next four years. However, the agreement still needs to be ratified by UAW members in order to take effect. If approved, the contract will set the stage for negotiations between the UAW and other major automakers, including Ford and Fiat Chrysler.