USA: UAW ratifies new GM and Delphi contracts - report
The United Auto Workers union on Monday ratified new four-year contracts with General Motors and Delphi Corp., which union officials said will allow GM to close two plants, Reuters reported.
The new contracts cover over 117,000 active workers at GM and more than 30,000 active workers at Delphi, as well as more than 234,000 retirees and 63,000 surviving spouses, the news agency noted.
According to Reuters, The UAW did not disclose what percentage of its members voted to approve the deals and also withheld the vote totals for its contracts with Ford and Chrysler.
The news agency said the contracts follow the economic terms set by the UAW in its contract with Ford and Chrysler, giving hourly workers a $US3,000 signing bonus, a performance bonus in the second year of the contract, a 2% raise in the third year, and a 3% raise in the fourth year.
The contracts preserved health care coverage and enhanced pension benefits, the UAW told Reuters, adding that the deals also pave the way for GM to close a vehicle assembly plant in Baltimore and a Michigan parts plant.
GM also agreed to award about $1 billion in new business to Delphi as part of a commitment to assure Delphi's long-term viability, the union told Reuters, adding that the UAW and Delphi also agreed to meet within 90 days to discuss competitive wages and benefits for new recruits.
GM also agreed to hire 2,250 workers and Delphi another 750 to fill skilled-trade apprentice posts over the course of the four-year contract, Reuters added, noting that GM has not commented on details of the contract.