Tentative Contracts Unveiled for 185,000 Union Workers at GM and Delphi

Strategic Insights -

About 500 UAW officials gathered to hear details of the contracts covering 185,000 workers at GM and Delphi Automotive Systems. The union said the deal gives the average assembly worker $29,900 in wage increases, bonuses, and holidays during the next four years. The UAW's executive council unanimously recommended the contract to the local unions, where ratification votes are expected to be completed by Oct. 10.

Key Takeaways:

  • The tentative contracts between the UAW and GM and Delphi cover 185,000 workers and provide an average of $29,900 in wage increases, bonuses, and holidays over four years.
  • The contracts include a 3% annual pay raise for all four years, a $1,350 signing bonus, and improved cost-of-living adjustments.
  • The deals have several clauses aimed at protecting union jobs, including a requirement for GM and Delphi to replace each job lost if employment drops below 80% of a set level in a bargaining unit.
  • The contracts also prohibit GM and Delphi from spinning off any division into a separate business or closing any factories without union consent.
  • The Delphi contract allows workers to transfer back to GM when openings occur and gives them until Jan. 1 to retire with GM pensions.
  • The contracts improve pensions for UAW workers, with a monthly benefit increase for a GM or Delphi worker with 30 years of experience and not yet eligible for Social Security, from $2,295 to $2,730 by the end of the new agreement.

Statistics:

  • 185,000: Number of workers covered by the tentative contracts
  • $29,900: Average amount of wage increases, bonuses, and holidays over four years for average assembly workers
  • 3%: Annual pay raise for all four years
  • 1,350: Amount of signing bonus
  • 80%: Level of employment below which GM and Delphi must replace each job lost
  • 90%: Level of employment below which GM and Delphi must fill one of every two empty positions
  • 100%: Level of employment below which GM and Delphi must fill one of every three empty positions
  • 5%: Decrease in job minimums through the life of the contract
  • $2,295: Monthly benefit for UAW workers with 30 years of experience under the existing pact
  • $2,730: Monthly benefit for UAW workers with 30 years of experience under the new agreement
  • 2%: Inflation increase under which retirees would get a lump sum of $885

Sources:

  • Associated Press, "UAW presents tentative contracts to GM, Delphi workers"
  • The New York Times, "Ford Plans to Spin Off Auto Parts Unit and Give Wage and Job Guarantees"