UAW provides details of pact with GM

September 28, 2007

DETROIT -- UAW officials today distributed details of their tentative agreement with General Motors to local union presidents.

During a press conference at UAW headquarters here after those meetings, UAW President Ron Gettelfinger said the agreement has “unprecedented product guarantees” and a moratorium on outsourcing.

The UAW General Motors National Council today unanimously recommended that the rank-and-file ratify the tentative agreement. The council includes local union presidents and bargaining chairs from about 80 U.S. GM facilities.

“Our goal is transparency,” Gettelfinger said in a press release. “Our members will have the opportunity to be exposed to all of the information about this proposed contract, so they can make an informed decision.”

The UAW said it expects to finish ratification votes by Oct. 10. Local unions will be meeting over the weekend.

Chris "Tiny" Sherwood, president of UAW Local 652 in Lansing, Mich., said his local would vote on the contract on Tuesday. His members would begin reviewing highlight books tomorrow and over the weekend.

Here are official details on the tentative agreement between the UAW and GM:

• GM agrees to new-vehicle programs at 16 U.S. plants (see related story on autonews.com).
• GM agrees it will not close, idle or sell any more U.S. plants other than three exceptions: SPO in St. Louis, Mo.; Livonia, Mich., powertrain; and Massena, N.Y. powertrain.
• GM would initially fund the UAW’s retiree health care trust fund with $29.9 billion with an additional $5.4 billion in future years.
• GM would provide the trust an additional backstop of as much as $1.6 billion over the next 20 years.
• Workers get a $3,000 signing bonus to approve the contract.
• Instead of pay raises, UAW rank and file get bonuses equal to 3 percent, 4 percent and 3 percent of their annual pay during the second, third and fourth years of the contract.
• New hires in noncore, nonproduction jobs would get paid between $14 and $16.23 an hour.
• New hires get a 401(k) plan instead of the traditional UAW pension plan.
• GM agreed to bring in-house 3,000 jobs that now are outsourced to contractors.
• GM agreed to hire 3,000 temporary workers as full-time hourly employees.

David Barkholz, Ryan Beene and Richard Truett contributed to this report

Source:
Philip Nussel
Automotive News