(Reuters) - The United Auto Workers union on Thursday released a summary of the tentative agreement it reached with General Motors Co (GM.N) to end a month-long U.S. strike by 48,000 workers.
Details of the four-year deal include:
- GM will close its assembly plant in Lordstown, Ohio, as well as transmission plants in Baltimore and Warren, Michigan. A fourth plant that had been targeted for closure - Detroit Hamtramck - will remain open with “new product.”
- Retirement-eligible members who have worked 30 years or more at the closing plants will be offered a payment of up to $75,000 (58,356.7 pounds) for a production employee and $85,000 for a skilled trades employee if they choose to retire. Employees at 28 or 29 years of work experience will be eligible for tiered payments if they agree to retire at 30 years. Employees not close to retirement will be offered payments ranging from $7,500 to $75,000 based on years worked.
- The UAW said GM made a commitment that the introduction of new technology will not move work out of the union and members will be able to retain higher-skilled work associated with new technology.
- The two sides agreed to form a joint committee, that will meet at least quarterly, to discuss the impact of future technologies on UAW members and address instances where work has shifted out of the union due to new manufacturing processes. It will review work functions to ensure any current or future work that belongs in the unit will be performed by union members.
- Beginning Jan. 6, 2020, the contract will give temporary workers a shortened path to full-time status, and starting Jan. 1, 2021, it provides a path for part-time workers to convert to regular status.
- The contract also provides for improved paid and unpaid time off for temporary workers.
- Within four years, all permanent manufacturing employees working as of the effective date will be paid at the top wage scale of $32 an hour.
- The contract provides for a 3% wage increase in the second and fourth years, and 4% lump sums in the first and third years for eligible employees.
- Senior UAW members will receive a contract ratification bonus of $11,000 per person, while temporary employees get $4,500.
- The $12,000 cap on profit-sharing payouts has been eliminated. All profit GM earns in North America will generate payments to members - based on the current $1,000 per $1 billion formula - with no limits.
- There will be no change to the union’s healthcare plan and no additional cost to members.
- Members currently accruing service in the defined benefit pension plan will receive a one-time company contribution of $1,000 to the personal savings plan.
- The union maintained quality and performance bonuses that GM wanted to eliminate and added a new performance bonus as well. The annual performance bonus lump sum is $1,000, the performance bonus payment is 4% of qualified earnings and the annual quality performance bonus is $500.
Compiled by Ben Klayman in Washington; Editing by Matthew Lewis