For the salary scale, employees receive a 3% pay increase or 4% lump sum payments for each of the four years covered by the contract. The union also negotiated the end of the $12,000 bonus cap. Union workers receive 1,000 $US per US$1 billion obtained by GM under the new employment contract that opens the door to higher union bonuses. The UAW has been on strike since 16 September and the action has idled about 46,000 workers. Disagreements include health care, wages, protection of temporary workers and job security, as well as the union`s demand to stop the importation of genetically modified vehicles from other countries, such as Mexico. Under the agreement, full-time workers who worked for three years or more would be permanently hired from January 6, a priority request from the UAW and many members. Part-time workers who have worked for at least two uninterrupted years become regular employees as of January 1, 2020. Temporary workers who work for at least one year are also entitled to paid and unpaid leisure time. The deal ends a costly strike for both UAW workers and General Motors, which has become one of the longest resignations in GM`s history.
The ratification process requires a simple majority for the employment contract to go beyond the provisional phase. According to the union, the strike will continue until the UAW-GM board votes to approve the proposed interim agreement. The city council will decide at a meeting on Thursday whether the strike continues or not. Although the workers survived on a strike salary of $275 per week, GM will pay $11,000 in ratification to each full-time employee for ratification of the agreement. Part-time workers receive 4,500 $US. In addition, the new employment contract provides a way to get full-time employment for temporary workers — a major victory for the union. There have also been rewards for temporary workers, about 7% of G.M employees who, after three years, will have permanent employment. About 900 of them will become employees in January, according to the union, and another 2,000 by 2021. This story will be updated as new information becomes available. UPDATE 17.10.19, 3:30 p.m.m: Automotive News reports this afternoon that the terms are discussed in the proposed agreement. The UAW GM Council met today for most of the day, but has not yet made a recommendation for a vote on ratification.
Under the terms of the interim agreement, the Hamtramck plant near Detroit, which currently employs about 800 people to build the Cadillac CT6 and Chevrolet Impala, would not close as planned and GM would build its future electric pick-up truck there; but the Lordstown assembly plant in Ohio, with transmission sites in Michigan and Maryland, would close permanently. GM made a statement to AN in which it said it would continue its battery production projects in Ohio and invest $9 billion in U.S. plants. GM confirmed that an agreement had been proposed and did not provide further details. GM`s stock rose 13.m a day after falling 10% during the strike. Share prices had recovered in recent days as expectations for comparison rose. Finally, it was to be the longest strike against GM in decades, which expanded after the announcement of a tentative agreement last week and which its members had begun voting. And the effects of Walkout have been felt across the country – not only by employees and GM, who have halted production at dozens of production and distribution sites, but also by a number of regional suppliers across the country, who depend on the automaker`s power supply.
The United Automobiles Workers` interim four-year agreement with General Motors Co. would provide temporary workers with a means of obtaining fully equipped employment, would not change health plans, remove the profit-sharing cap, give wage increases or bonuses each year of the contract, and offer a bonus