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, but with double the signing bonus, up to $8,000 for some workers, according to a source familiar with the agreement.
The current profit-sharing formula 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 the cost from a record number of product recalls.
It was not clear that all 52,700 workers would receive $8,000 upon ratification. 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 will receive a $3,000 signing bonus. The range of their 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 will see their hourly wage rise to $22.50 by 2019 from a maximum of $19.28 in the old contract.
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