UAW Reaches Contract Agreement With GM

The United Auto Workers and GM announced late Friday that after more than seven weeks of negotiations the two had agreed on a four-year contract that included new jobs, improved profit-sharing and better health care benefits.

Two anonymous sources told The Associated Press that, in this first contract since GM and Chrysler were given government bailouts in 2009, the UAW had won $5,000 signing bonuses and a pay raise of $2 to $3 per hour for entry-level workers.

Local union leaders are expected to be briefed on the new contract Tuesday, and workers could vote the contract into effect in the next 10 days. –BF

The Associated Press in Forbes:

The deal also will include creative ways to cut GM’s hourly labor costs. GM pays around $56 per hour including wages and benefits, which is less than what Ford pays but far higher than other companies like Chrysler and Hyundai Motor Co.

GM was the first of the Detroit Three to reach agreement with the UAW. Chrysler is likely to be next, followed by Ford, where little progress has been made in negotiations so far.

The UAW announced the GM agreement just after 11 p.m. EDT Friday, after a little more than seven weeks of closed-door bargaining.

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