GM-UAW deal details

Some details have come through on the strike-breaking GM deal with the UAW in America.

This via Automotive News:

What GM got: Will shift more than $50 billion in health care liabilities to a UAW trust fund; more productivity in U.S. plants; lower tier-two wages for new hires in certain areas such as janitorial and truck unloading. GM also won revisions in the controversial Jobs Bank program in which laid off employees continue to receive pay for indefinite periods, according to multiple media outlets.

What the UAW got: Guarantees of new plant investments in the U.S.; a health care benefit trust that will remain solvent for 80 years; GM will permanently hire up to 5,000 temporary workers; signing bonuses to UAW members to approve the contract; and wage increase of 3 percent in the second year, 4 percent in the second year and 3 percent in the third.

Things that worry me a little:

1) That jobs bank is still there. Unbelievable

2) That the health fund created “will remain solvent for 80 years”. It’s supposed to be managed by the UAW, correct? What if they’re poor at investment and money management and it goes insolvent after 50 years? Do GM have to kick in again?

——

The good news is that the uncertainty’s over and most people can now get back to work. It’s potential to harm Saab was fairly limited anyway. As far as I’m concerned, this should hopefully be the last post on the issue (I can hear the collective sigh of relief from here).

——

Thanks to Ted S.

You may also like

Leave a Reply

Your email address will not be published. Required fields are marked *