The United Auto Workers and General Motors Corp. today announced a tentative contract agreement, two days after the union launched it first national strike against GM in 37 years. According to a report from our sister newspaper Automotive News, the new four-year deal includes a comprehensive health care trust fund for UAW retirees and broad job guarantees for UAW workers in the United States. Some more details, from AN and attributed to various sources::
- The health care trust would be strong enough to remain solvent for at least 80 years. Analysts said GM has agreed to finance the trust at 70 percent of its long-term liability, or $35.0 billion.
- The agreement also includes job guarantees and new investment in products for U.S. plants.
- The agreement includes a signing bonus and a provision that would allow temporary employees to be made permanent starting at their current wage of $18 per hour, said a source briefed on the details. Veteran production workers earn about $28 per hour.
- GM also plans to offer another early-retirement and buyout to workers.
- The agreement calls for a wage increase of 3 percent in the second year, 4 percent in the second year and 3 percent in the third.