(CTN News) – The United Auto Workers union announced a tentative agreement with General Motors (GM.N) that includes plans for investments in electric vehicles and will increase wages for thousands of US hourly workers in units with lower wage levels than those at vehicle assembly plants.
On Saturday, the UAW released a more detailed description of its proposed four-and-a-half-year contract with General Motors. There was an announcement of a tentative agreement on October 30.
In a video address on Saturday, UAW President Shawn Fain stated, “We have won this round.” “The contract will have a positive impact on thousands of lives.”
As all three contracts have been approved, UAW leadership will work over the next two weeks to ensure that rank-and-file union members vote in favor of the contracts.
In keeping with Ford (F.N) and Chrysler parent Stellantis (STLAM.MI), the agreement includes 25% base wage increases for full-time employees, bringing the total to 33% after adding the newly negotiated cost-of-living allowances.
Temporary workers will transition to full-time status more quickly, and their wages may increase by approximately 50% immediately. The hourly wage of temporary employees who convert to full-time status could more than double during the agreement term.
GM’s agreement will result in higher wages for over 7,000 UAW members working in GM component plants, service parts warehouses, and what GM calls “subsystems operations”.
According to UAW officials, the new contract is likely to undo the automaker’s strategy of holding labor costs down for years.
In his remarks, Vice President Mike Booth stated, “This contract offers wage increases and economic benefits unlike anything we have seen in the past.” The gains in this contract are four times greater than in the last contract.
The starting base wage for full-time members will increase by about 70% to $30.60 per hour over the course of the contract, and by about 33% to $42.95 per hour for those earning top wages.
The progression of workers to the top wage will be reduced from eight to three years, according to him.
GM’s Ultium EV batteries operations will also be covered by the master agreement,
According to Fain. In addition, Ultium seeks to hire former GM employees at its old Lordstown, Ohio, assembly plant at current wages, and new hires will earn at least 75% of Ultium’s maximum salary.
Additionally, the UAW said that GM has agreed to invest $4 billion at its Orion, Michigan, plant for future electric vehicles, as well as $2 billion at its Spring Hill, Tennessee, plant for two GM EVs and a future partner EV. According to the union, Factory Zero in Detroit will also produce an electric full-size SUV in the future.
Fain also urged workers across the country to organize.
Toyota, Honda, Volkswagen, Hyundai, and Tesla workers, too, deserve record contracts, he said.