GM contract: worker pay hikes, factory closings move forward

Workers went on strike Sept. 16, crippling the company's U.S. production and costing it an estimated $2 billion.

Associated Press
October 17, 2019 - 12:08 pm
Bill Jackson, of St. Louis, gives a thumbs up to drivers that wave or honk as United Auto Workers outside the GM Wentzville Assembly Center in Wentzville, Mo., Wednesday, Oct. 16, 2019.

Cristina M. Fletes/St. Louis Post-Dispatch via AP

By TOM KRISHER AP Auto Writer

DETROIT (AP) — A tentative four-year contract with striking General Motors gives workers a mix of pay raises, lump-sum payments and an $11,000 signing bonus.

In return, the contract allows GM to proceed with factory closures in Lordstown, Ohio, Warren, Michigan, and near Baltimore.

Details were posted Thursday on the union website as factory-level union officials met to decide if they'll approve the deal.

No decision has been made.

Workers went on strike Sept. 16, crippling the company's U.S. production and costing it an estimated $2 billion.

Related: Wentzville businesses feeling effects of GM employee strike

The Detroit Hamtramck plant which GM wanted to close will stay open and a new electric pickup truck will be built there.

There are retirement incentives and buyouts or workers at the closed plants who didn't transfer to other GM factories.

The deal also shortens the eight years it takes for new hires to reach full wages and gives temporary workers a full-time job after three years of continuous work. Workers hired after 2007 who are paid a lower wage rate will hit the top wage of $32.32 per hour in four years or less.

It also has a $60,000 early retirement incentive for up to 2,000 eligible workers.