GM Contract Includes A Raise for Two-Tiers, Bonuses

UAW President Bob King has followed through on his vow to win a raise for entry level auto workers. Details of the new contract between the union and General Motors, released today, show some of them will be earning nearly $20 an hour by the end of the contract.

The Cleveland Plain Dealer hasĀ  a story that includes both the summary sheet of the contract, and the actual contract language.

Workers begin voting on the new four-year contract this weekend. The union will now negotiate deals with Ford and Chrysler.

Changing Gears has reported on the situation facing entry level auto workers, known as “two-tiers.” These workers, hired after 2007, earn sharply lower wages and less generous benefits than veteran workers. At GM, about 4% of workers fall under the entry level category.

They’re in line to get raises of about $3 an hour through 2015. That would put the top wage for these workers to $19.28 per hour.

There also are bonuses for all GM workers that are tied to the company’s profitability. Said the Plain Dealer,

“,,, the biggest benefit could be a change to GM’s profit-sharing formula with workers. Under the new deal, employees would get $1 in bonuses for each $1 million in GM North American profits — starting at $1.25 billion in profits. Workers would not get bonuses if GM loses money or earns less than $1.25 billion in North America.

UAW President Bob King estimated that workers could get $20,000 over the next four years if GM remains as profitable as it has been this year.

“There’s nowhere else in America in manufacturing that’s creating good, middle-class jobs like the auto industry,” King said”

You can find more on the new contract at the UAW’s web site.



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