Even with GM not doing so well and having to shutter 3 plants, the UAW ratified a deal that shows the company really does appreciate their workforce. Yes, even during difficult times, GM and the UAW know how to motivate a strong group of craft employees. Even though skilled labor will reap higher pay, the unskilled craft employees garner the same benefits by ratifying the new four (4) year contract. And the union did not toss aside those at shuttered plants where the union said it negotiated assistance packages for workers at Lordstown, Warren and Baltimore transmission plants, including $75,000 payments for eligible production workers and $85,000 for skilled workers who retire. There are also buyout options for those not eligible to retire. Additionally, employees will garner an $11K signing bonus, $60K for early retirement at non-closing plants. Also, as important, no change in the existing health plan provided and no additional cost to members. All of this is addition to a $12,000 cap on profit sharing being eliminated. All profits earned by GM in North America will generate payments to members. The contract also provides two 3% raises and two 4% bonuses. And for all the naysayers that think that unions are bad for business, GM shares were up about 1% during after-market trading following reports of the ratification. The stock closed at $36.74, up 2.57%. The union contract ratification is a win-win-win for GM, UAW (union), and investors. Additionally, the customer wins with continued quality manufacturing by a well motivated, well paid workforce. Now it's your turn U.S. Postal Service. We have listened to the Postmaster General compliment the great job employees do so how about putting your money where your bread is buttered ...the workers.
Reference: NPMHU 317
