After weeks of negotiations and threats of a strike, General Motors (GM) and the United Auto Workers (UAW) union reached a tentative agreement on a new four-year contract on October 16, 2019. The proposed deal includes wage increases, improved healthcare benefits, and job security provisions for UAW-represented workers at GM.
Here are some of the highlights of the new GM-UAW contract:
1. Wage Increases
The proposed contract includes wage increases for UAW-represented workers at GM. According to UAW officials, the deal includes a 3% wage increase for the first and third years, and a 4% lump sum bonus in the second and fourth years of the contract.
2. Improved Healthcare Benefits
The proposed contract also includes improved healthcare benefits for UAW-represented workers at GM. The deal would reportedly cap out-of-pocket costs for prescription drugs at $25 for a 30-day supply, and eliminate the so-called “doughnut hole” where workers are responsible for 100% of their drug costs after they hit a certain limit.
3. Job Security Provisions
The proposed contract includes job security provisions designed to address concerns about GM`s recent plant closures and layoffs. According to the UAW, the deal would create a path for temporary workers to become full-time employees, and would also reportedly include language aimed at protecting UAW-represented workers` jobs in the event of future plant closures.
4. Ratification Bonus
The proposed contract includes a ratification bonus of $11,000 for eligible UAW-represented workers at GM. The bonus would reportedly be paid out after the contract is ratified.
5. Investment in US Facilities
According to UAW officials, the proposed contract includes a commitment from GM to invest $7.7 billion in US facilities over the life of the contract. The investment is expected to result in the creation or retention of 9,000 jobs.
Overall, the proposed GM-UAW contract appears to address many of the key concerns raised by UAW-represented workers during the negotiations. The deal still needs to be voted on by UAW members, and if approved, would set a precedent for other auto industry contracts currently being negotiated.