GM Increases Contract Offer for UAW Members

Ken Zino of AutoInformed.com on GM Increases Contract Offer for UAW Members

Click on Mr. Johnson for more.

General Motors said today that it has provided a comprehensive offer to the UAW yesterday with “substantial movement in all key areas in an effort to reach a final agreement with the UAW and get our people back to work.” Gerald Johnson, executive vice president manufacturing and global sustainability, in a video told GM UAW members “the offer on the table is the most significant that GM has ever proposed to the UAW and recognizes our team members for all their dedication and contributions. The majority of our workforce will make $40.39 per hour, or roughly $84,000 a year by the end of this agreement’s term. We also continue to provide world-class health care with no out-of-pocket premiums or deductibles for seniority team members.”

Neither the United Autoworkers Union, nor its president Shawn Fain had immediate comment, which AutoInformed takes as a hopeful sign that a fair deal for all involved is in process.

Johnson Remarks Excerpted

“There was an employee talking to one of his managers and he made the comment that 20% raise didn’t seem or sound like enough and he was looking to make $37.00 an hour. When the manager pointed out to him that the 20% actually translates to over $39.00 an hour. So I want to take this opportunity to be more clear about what’s been offered.

  • “We believe we have met our commitment to provide historic improvements in wages and benefits and have also addressed the future of EV battery manufacturing. So let’s start with dollars and cents. We have offered a 20% wage increase over the life of this contract that impacts number at every level and see.
  • “Here’s an example. The majority of our workforce will make $39.24 an hour.
  • “We know that with built in bonuses, profit sharing and the opportunity for overtime, that means many will earn more than $100,000 a year. This will put the numbers amongst the top 25% of full time American workers. And it’s also worth mentioning that our wages under this offer are 30 to 40% higher than similar role in foreign transplants and Tesla.
  • “When we see these statistics, we’re proud of how we’ve continued to compensate and recognize our team members. These are not poverty wages. Not by any definition. And they will be protected through a cost of living allowances that will help offset inflation.
  • “So now let’s talk a little bit about company paid healthcare. Our offer continues one of the best healthcare plans you can find anywhere and the coverage is free now. Most Americans with company sponsored healthcare plans have to pay a portion of their monthly premium out of their own pocket. Typically deductive in 2022, that was about $8000 for a single person and $22,000 for a family per year. The company pays and will continue to pay 100% of those healthcare premiums for our UAW represented team members and their families. As we’re all aware, since the early 2000s, healthcare costs have outpaced inflation and the company pays for those increases. Not the employee.
  • “We’ve committed to contribute 8% of your earnings to your retirement plans. And this isn’t a match. This retirement benefit does not require an employee contribution. However, we know a typical employee contributes 8.7% into their retirement savings on top of the company paid portion. That means in a 30 year career, you could have more than $1,000,000 of retirement savings. And as your wages increase, so will that number.
  • “Finally, let’s talk about work life balance. We’re providing up to five weeks of vacation, we added two weeks of paid parental leave and an additional paid holiday, Juneteenth. Which brings the total up to 20 paid holidays per year.
  • “Why are we on strike? You might be asking yourselves why can’t General Motors meet every demand? Sean Fain is asking for simple answer: This is because we need profits to invest in our future. For example, over the past 10 years. We’ve invested more money in our business than we’ve earned and if we don’t have those profits to continue our investment in our plants. Our people in our products, we will be facing declining market share and inability to fund the EV transition and an inability to compete with a growing number of competitors right here in America.
  • “Recent investment announcements in Flint. Fort Wayne, Arlington and Toledo could not have happened. The implications for jobs would be devastating, and that’s not a reality we are willing to accept.
  • “So where do we go from here? There’s no doubt we have been successful as a company over the past several years thanks to the hard work of all employees who contribute their talent to GM. But we have also been successful because of our strategy and how we invest in the future. We have to look at the big picture and find the right solution to do right for our team members, our customers and this company. We can’t allow anyone or anything to undo the progress we have made over the past several years. You deserve better than that. As you know, this industry is making history and we’re fighting to be at the forefront of it all. We intend to lead the transition to EV’s and we intend to win.

“So what’s my ask? Of you. Let’s move forward together, producing high quality vehicles for all of our customers. That’s it. And please stay safe,” Johnson concluded.

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