General Motors and the United Auto Workers have reached a tentative four-year labor agreement. The agreement, which would affect about 48,500 GM workers in the U.S., must now be ratified by UAW members within the next seven to 10 days.
GM has not been forthcoming about the details of the labor agreement, other than saying that it “addresses the needs of employees and positions our business for long-term success.” The Detroit News and Automotive News report that the new agreement gives a $5000 signing bonus to eligible UAW-represented GM employees, which could be worth as much as $242.5 million.
Entry-level assembly workers will be paid $2 to $3 more per hour, and more experienced Tier 2 employees will see wages hiked to between $16 and $19 per hour. The UAW also managed to score an extension of profit-sharing agreements, which will see employees receiving profit-sharing checks based on GM’s North American profits.
The UAW also said that GM agreed to rehire laid-off workers, transfer jobs from overseas back to the U.S., and give buyout offers to skilled trade workers for whom there are longer job openings. GM reportedly agreed to restart production at an idled plant in Spring Hill, Tennessee, and to start assembly of new products at factories in Romulus, Michigan; Wayne, Michigan; and Wentzville, Missouri.
“This contract will get our members who have been laid off back to work, will create new jobs in our communities and will bring work back to the United States from other countries,” UAW president Bob King said in a statement.
Chrysler and Ford have yet to renew their contracts with the UAW, which expired earlier this month.