The UAW says that under a tentative agreement General Motors has agreed to invest another US$1.9bn in US plants to secure or create an additional 3,300 union jobs. The company also plans to pay higher bonuses and wages over the four years of the proposed UAW contract.
If the agreement is ratified, around 53,000 UAW workers will get bonuses of up to $8,000, and 4,000 workers will get $60,000 early retirement packages.
Veteran UAW workers will get a hike of 3% in their base wage in two of the four years, with lump sum payments in the other two years, Reuters reported. Additionally, for every $1bn of profit that GM North America makes, workers will get $1,000.
Further, workers who are hired at $17 an hour will earn progressively higher until they receive an hourly wage of $30 in eight years. The new pact also eliminates the two-tier wage payment system.