New Car Deal UAW Provides Details of Pact With GM

By Staff Report

Sep. 28, 2007

UAW officials on Friday, September 28, distributed details of their tentative agreement with General Motors to local union presidents.

During a press conference at UAW headquarters in Detroit after those meetings, UAW president Ron Gettelfinger said the agreement has “unprecedented product guarantees” and a moratorium on outsourcing.

Here are official details on the tentative agreement between the UAW and GM:

  • GM agrees to new-vehicle programs at 16 U.S. plants.

  • GM will initially fund the UAW’s health care trust fund with $29.9 billion, with an additional $5.4 billion in future years.

  • GM will provide the trust an additional backstop of as much as $1.6 billion over the next 20 years.

  • Workers get a $3,000 signing bonus to approve the contract.

  • Instead of pay raises, UAW rank and file get bonuses equal to 3 percent, 4 percent and 3 percent of their annual pay during the second, third and fourth years of the contract.

  • New hires in noncore, nonproduction jobs would get paid between $14 and $16.23 an hour.

  • New hires get a 401(k) plan instead of the traditional UAW pension plan. GM will create a cash balance defined benefit plan for entry-level workers, by which it will deposit 6.4 percent of workers’ wages into a portable retirement plan, which will accrue interest tied to the 30-year U.S. Treasury bond.

  • GM agrees to bring in-house 3,000 jobs that now are outsourced to contractors.

  • GM agrees to hire 3,000 temporary workers as full-time hourly employees.

Filed by Philip Nussel of Automotive News, and Jessica Marquez of Workforce Management. To comment, e-mail

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