General Motors has agreed to retain or create 6,400 jobs as part of $2.5 billion in planned product and plant investments under a new labor accord with the UAW. Hit the jump to read the rest of the story.
Funk Flex
In a move to encourage GM to add jobs, the union and automaker negotiated new buyout offers of $10,000 to $65,000 to encourage long-time workers to retire and be replaced with lower-paid, entry-level workers.
The union today released details of the pact covering wages and benefits for 48,000 GM workers, as well as future plant investments.
The investments include two new mid-sized vehicles to be built at GM’s Spring Hill, Tenn., assembly plant, which will be reopened.
Additional product plans include a new transmission program at GM’s Warren, Mich., powertrain plant; a new engine program at a Romulus, Mich., powertrain plant; a new casting operation at a plant in Saginaw, Mich.; and an additional production shift at GM’s Wentzville, Mo., assembly plant — where GM is expected to build a new compact pickup for Chevrolet and GMC.
According to the UAW, the investments in Spring Hill, Warren, Romulus, and Saginaw originally were slated for GM’s Mexico operations.
GM also plans to assemble a compact vehicle at a yet-to-be determined plant, the union said.
UAW members will vote on the contract between now and Sept. 28 and be eligible for a $5,000 signing bonus upon ratification.
