UAW Says GM Deal Is About Jobs
DETROIT - (WWJ/AP) The UAW says its new deal with General Motors will add or keep 6,400 new jobs, help entry level workers and keep GM competitive in a fragile economy.
"I think we've got an agreement that helps us get through those periods of time," said UAW President Bob King. "We didn't add many fixed costs during that period."
King was releasing details of the new deal first to UAW local leaders, then to the media.
In addition to the already disclosed $5,000 signing bonus and enhanced profit sharing, workers will get $1,000 bonuses in each of the next three years, plus $250 extra if certain quality goals are met.
Lower paid entry level workers will see improvements in both wages and benefits.
"We increased wages dramatically," said King. "From $14, they'll be up to $19.28. We got benefits for them."
Those benefits, said King, include improved health care, and $5,000 more a year in educational benefits.
The deal creates over 5,100 new jobs.
The union said that under the deal, GM has agreed to create or keep the jobs and invest in its factories, including the reopening of an assembly plant in Spring Hill, Tenn. Union-company teams also are identifying 760 more potential jobs and 1,400 more jobs for UAW-represented GM suppliers, officials said at a news conference.
The Spring Hill plant will make two midsize cars, according to a summary of the agreement released by the UAW. The work originally was slated for Mexico, the union said.
GM will invest $61 million for one of the cars and add 600 jobs, while it will spend $358 million on the other car with 1,100 jobs created.
Other factories scheduled to get new work under the deal include:
- Wentzville, Mo.: Gets additional shift plus a midsize pickup truck. A $380 million investment and 1,850 new jobs.
- Warren, Mich.: Transmission plant near Detroit gets new transmission. A $325 million investment and 360 new jobs.
- Romulus, Mich.: Engine plant near Detroit gets $385 million investment and 285 jobs.
- Saginaw, Mich: Casting plant gets $215 million investment and 255 jobs.
- Fort Wayne, Ind.: Truck assembly plant gets next-generation pickups, with a $230 million investment and 150 jobs created or retained.
In addition, GM will build a new compact car at a factory that's yet to be determined. It will create more than 500 jobs with a $150 million investment.
The summary of the deal said GM's assembly plant in Shreveport, La., will close as scheduled, while a plant in Janesville, Wis., will remain idled.
UAW Vice President Joe Ashton says not being able to save the Shreveport plant was his greatest disappointment in the talks.
The union will decide in the next few days whether it will go to Ford or Chrysler next.
King said that a testy letter last week from Chrysler CEO Sergio Marchionne will not hurt talks with that automaker.
"We have a great relationship at Chrysler, with Sergio and Chrysler management," he said. "We're working together as we did here to create new jobs."
Even thought Chrysler has hinted that it can't afford to give the union the same deal as Chrysler, King says they will push forward to make sure all three car makers get similar deals
"We will take the framework here and go to Ford and go to Chrysler. We think it's a framework that can work at all three companies."
WWJ AutoBeat Reporter Jeff Gilbert and The Associated Press contributed to this report.
