General Motors Co. has committed to shelling out $420 million in signing bonuses to lure hourly workers into approving a new four-year wage agreement that largely mirrors a pact struck with Fiat Chrysler Automobiles NV earlier this month.
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The signing bonus of $8,000 for all employees is substantially more lucrative than what Fiat Chrysler employees were offered. Wage increases for both groups at GM will be the same as what Fiat Chrysler agreed to, said the person, who asked not to be identified because the terms aren’t yet public. UAW officials have said the auto would be produced in Mexico. The GM accord was announced without details late Sunday, 16 minutes before a strike deadline. GM now pays recent hires less than longtime workers. “They will want bigger raises and profit sharing”.
Brian Rothenberg, the Union’s spokesman, commented: “The UAW will release all of the information after the council votes tonight should they adopt a tentative agreement”. Fiat Chrysler earlier Wednesday reported North American margins of 6.7 percent. I think most people would say Volkswagen has a few has some major issues to address.
UAW members at GM got US$5,000 under the 2011 contract, and those at Fiat Chrysler received US$3,500. It pays $1,000 per $1 billion in North American profit. The four-year contract covers 52,600 GM factory workers.
Workers hired since 2007 will for the first time have a clear pathway to earning the top wage for veterans provided they remain with the company for eight years.
GM has a much lower percentage of second-tier workers than Fiat Chrysler does, at about 21 percent vs. about 45 percent.
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UAW Local 652 Vice President Randy Freeman Monday said its members have “a lot of faith in the worldwide (leadership) to deliver us a good agreement”.
