Contract Details

Saturday, September 29, 2007

Highlights of the new four-year contract between General Motors and the United Auto Workers union:

¿ GM would fund the voluntary employees' beneficiary association (VEBA) trust, which will pay retiree health benefits, with an initial contribution of $30 billion and another $5.4 billion in coming years.

¿ Additionally, GM would "backstop" the new trust with up to 20 additional annual payments of $165 million each to be made if the trust appeared in danger of not being able to maintain benefit levels.

¿ A binding commitment from GM to continue current production levels at 16 U.S. plants through the life of the contract.

¿ A moratorium on outsourcing for certain jobs.

¿ A signing bonus of $3,000 for each worker.

¿ A total economic gain to the average hourly worker of $13,056 over the course of the contract.

¿ No hourly wage increase but two 3 percent lump-sum payments and one 4 percent payment.

¿ Some entry-level jobs that once paid about $28 an hour will now pay about $14.

¿ GM would maintain co-payment on prescriptions at current amount.

¿ GM would move 3,000 temporary workers to full-time jobs with benefits.

SOURCE: United Auto Workers.

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