It's official: the United Auto Workers union has finally ratified a new labor agreement for its members employed at General Motors facilities across the country.
The agreement, which was drafted over a week ago, was recently ratified by UAW members, including 65 percent of production workers and 63 percent of skilled trade workers. The UAW covers 48,500 hourly GM employees.
“The agreement is a win-win for our employees and our company,” GM chairman and CEO Dan Akerson. “It underscores the alignment between the UAW and the new GM in our efforts to drive long-term success, and gives all of our employees a direct stake in the quality of our products and our performance.”
GM expects the agreement to have a limited impact on the automaker’s fixed costs. The agreement will recognize hourly employees with profit sharing based on company performance. Employees will also benefit from a new quality performance-based bonus. The bonus will be based off improvements of the initial quality of vehicles.
By not increasing pension benefits and capping the hourly pension plan population GM executives say it protects the company in case of a U.S. industry downturn by preserving the balance sheet and the automaker’s “low break-even level.”
“GM and the UAW remain steadfast in our commitment to strengthen the U.S. manufacturing base, create good-paying jobs and build the high-quality, fuel-efficient cars and trucks our customers deserve,” said Akerson.
The automaker plans to make manufacturing investments of more than $2 billion during the four-year agreement. GM says the money will go toward creating or retaining more than 6300 jobs.
Source: General Motors