General Motors and the United Auto Workers union negotiated a four-year agreement, subject to a worker vote, on Nov. 15, 2015. This agreement sets out terms for factory upgrades, wage increases, employee buyouts and bonuses.Continue Reading
In the agreement, General Motors pledges to increase its promise of $6.4 billion in factory-upgrade investments to $8.3 billion, including an additional 12 facilities over the next four years. The union projects that the increased investment can protect or create over 3,300 jobs.
General Motors promises to phase out a two-tier pay system over eight years by raising the pay of workers in the lower tier, who comprise approximately 20 percent of the company’s hourly employees, or 10,500 individual workers. To offset the costs of these raises, General Motors pledges to buy out up to 4,000 highly paid, tenured employees by May 1, 2016, at sums of up to $60,000.
The deal guarantees an $8,000 bonus to all employees with additional smaller bonuses available based on employee and company performance. The contract also offers new profit-sharing opportunities to employees.
The new agreement replaces a previous four-year agreement from 2011, which expires on Nov. 20, 2015. The union previously extended this deadline due to a lack of support from skilled employees at General Motors.Learn more about Corporations