On Monday, union members of General Motors accepted a new UAW contract, following a contentious majority-to-minority vote over the weekend. The four-year deal was approved by a majority of union members, and is set to raise wages, provide bonuses for members, and offer job security for workers.
The UAW-GM contract includes an initial signing bonus of $9,000 for workers, along with raises 3 percent in the first year of the contract, 2.5 percent in the second year, and 3 percent increases each year thereafter. The agreement also provides a total of $8 billion in wage and lump sum bonuses over the life of the contract.
In addition, the contract will provide job security to thousands of GM workers. The agreement includes a commitment to invest $9 billion in U.S. plants, $7.7 billion of which will go toward automated vehicle technology. The deal is especially beneficial to GM’s skilled trades workers, who will receive a “Hold-Harmless” bonus of $275 per year both during and after the term of the contract.
The vote was not without controversy, however. As the news was announced by the UAW, members of an independent union, the Independent Parts Truck Drivers Association of America (IPTDA), released a statement condemning the deal, calling it “anti-worker” and insisting that it does not address the long-term economic security of members.
The UAW-GM contract provides some significant gains for GM workers, but it is clear that many members are still unsatisfied. As the auto industry continues to evolve, unions and workers are facing increased pressure to protect their jobs from the automation of the manufacturing process. Whether this contract will meet those needs remains to be seen.