UAW autoworkers officially ratified new contract, union says
The United Auto Workers union (UAW) announced on Tuesday (December 15) that its members officially ratified a new four-year labor contract with General Motors. The new contract is effective January 1.
The contract, which was reached in November, includes a 3% pay raise for workers by 2021, annual profit sharing of up to $8,500, and the continuation of the company’s $60 billion investment in U.S. plants.
In addition, the contract creates a new health care co-op, provides lump-sum payments of up to $11,000 for temporary workers who convert to permanent employee status, and a $9,000 bonus for production workers. It also includes a framework for negotiations on electronic vehicles and constituent parts.
UAW President Gary Jones said in a statement that the ratification of the contract marks “historic and permanent changes” for GM workers.
“We are not done yet. We continue to work on the path forward to realize a fair wage for our nearly 6,000 temporary employees and the over 45,000 new members we recruited in the last four years,” he said.
The agreement marks the conclusion of a long and difficult process for workers, many of whom had gone on strike back in September in an effort to secure better wages and benefits. The strike resulted in the loss of over $3 billion in revenue for GM.
The UAW leadership is also in talks with Ford Motor Company and Fiat Chrysler Automobiles about reaching similar agreements.