General Motors Strike Agreement: A Look at the Recent Developments

General Motors and United Auto Workers (UAW) have recently reached a new contract agreement that would end the 40-day long strike in the US. The UAW-GM contract was set to expire on September 14, 2019, but the union had authorized a strike on September 16, after failing to reach an agreement with the automaker. The strike affected around 50,000 workers in the US and cost GM approximately $1.75 billion.

While the strike was ongoing, both sides were at odds over issues such as wage increases, healthcare benefits, temporary workers, and job security. However, after several weeks of negotiations, GM and UAW finally came to an agreement on October 16. Here is a closer look at some of the key highlights of the new contract:

Wage and Benefit Increases

GM agreed to raise base wages for all employees and provide lump-sum bonuses. The agreement also increases the wage rate for temporary workers and provides a clear path for them to become permanent employees. The new contract also includes improved health care coverage with lower out-of-pocket expenses.

Job Security

One of the key sticking points during the negotiations was job security. The new agreement includes commitments from GM to invest $7.7 billion in US facilities and create or retain 9,000 jobs. This includes $3 billion to retool its Detroit-Hamtramck plant, which has been idle since January 2019. As part of the deal, GM also agreed to create a new electric truck in Detroit.

Temporary Workers

The new contract provides temporary workers with a clear path to permanent employment. Temporary workers will be able to transition to full-time status after three years of continuous service. There are also increased wages and a better benefits package for temporary workers.

Retirees

The agreement provides a better retirement plan for workers who have retired since 2011. They will be eligible for a 401(k) retirement savings plan as well as increased healthcare benefits.

It`s important to note that the UAW-GM deal still needs to be ratified by the union`s members. Union leaders will present the deal to the workers, who will then vote on whether to accept it. While there is no guarantee that the contract will be ratified, it is expected to pass.

In conclusion, the new UAW-GM contract is a significant achievement for both sides. The agreement provides for better wages, improved health care benefits, and job security commitments from General Motors. The deal is expected to end the 40-day old strike and bring relief to the affected workers. Additionally, it bodes well for the US automotive industry as a whole, as the settlement sets a valuable precedent for other automotive manufacturers in the country.

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