UAW-GM workers to get larger signing bonus than FCA’s – Detroit Free Press
The UAW’s tentative agreement with General Motors matches the base wage increases reached in a contract with Fiat Chrysler Automobiles, but with double the signing bonus, up to $8,000 for some workers and other enhanced payouts.
Even temporary workers get a signing bonus of $2,000, according to the highlights of the agreement posted on a Facebook page. The UAW is expected to officially release terms this evening.
Everyone with three or more years will get to the traditional wage by the end of the GM contract. Longtime workers hired before 2007 will get 3% pay increases in the first and third year of the contract and 4% lump sum bonuses in the second and fourth years.
There is a $1.000 annual lump sum performance bonus as well as a $500 quality lump sums to be paid out on Nov. 15 and every Nov. 15 through the end of the new contract.
There is even something for retirees: a $500 gift card.
And there is $60,000 for up to 4,000 eligible production employees who retire between Feb 1 and May 1 2016.
The UAW says it has secured $1.9 billion in new investments in U.S. plants in addition to $6.4 billion already announced in 2015. The new investments will create or retain more than 3,000 jobs at 12 plants.
The GM contract might also maintain the current profit-sharing formula that translates to $1,000 per worker for every $1 billion in GM’s pre-tax North American profit in the calendar year. Last year that amounted to about $6,600 per worker, but the company added $2,400 to that to offset the impact from the cost of a record number of product recalls.
The FCA contract switches to a new profit-sharing formula that is more complicated.
It was not clear that all 52,700 GM workers would receive the full $8,000 singing bonus. In a contract the UAW negotiated with FCA, workers hired before October 2007 are to receive a $4,000 ratification bonus. Those hired after October 2007 will receive $3,000.
UAW President Dennis Williams and Cindy Estrada, vice president of the union’s General Motors department, will brief local shop chairmen and presidents this afternoon on the contract. Those local union leaders will hold information meetings in coming days with 52,700 UAW workers, who will vote to ratify or reject the deal.
While the expectation is that the GM wage package will be similar to the one negotiated with Fiat Chrysler, it is not surprising that some elements, such ratification bonus or performance-based awards are different.
The union’s contract with FCA included a gradual narrowing of the wage gap between those hired before and after October 2007, but new workers hired now will not reach parity with their more senior coworkers until another contract is reached in fall 2019.
More specifically, entry-level workers wages will start at $17 an hour (up from $15.78 in the previous contract) and top out at about $29 an hour in eight years or less. Previously the Tier 2 production workers could make no more than $19.28 an hour.
Some workers wanted newer hires to reach the maximum more quickly. They will see their hourly wage rise to $22.50 by 2019 from a maximum of $19.28 in the old contract.
Contact Greg Gardner: 313-222-8762 or email@example.com. Follow him on Twitter @GregGardner12.