Here's what you need to know about the UAW-GM deal | Michigan Radio
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Here's what you need to know about the UAW-GM deal

Oct 17, 2019

After one month of striking, the United Auto Workers have reached a deal with General Motors.

The proposed deal, which was announced Thursday, would increase wages, keep the Detroit-Hamtramck Assembly Plant Plant open, and lead to 9,000 new or retained jobs - a jump from GM's original proposal of 5,400 jobs.

This is a developing story.

A proposal does not mean the strike has ended. Workers are expected to stay on the line until the National GM Council reviews the proposal and decides to submit it to union members for ratification.

The highlights on the proposed contract summary include:

  • Ratification bonuses of $11,000 for senior employees and $4,500 for temporary employees
  • A 3% wage increase for the second and fourth year of the contract; and a 4% lump-sum bonus in the first and third
  • A path for full-time temporary workers to reach permanent status
  • A path for part-time temporary workers to reach regular status
  • Improved paid and unpaid time off for temporary workers
  • No health care changes or additional costs
  • The elimination of the $12,000 cap on profit sharing

How we got here

Roughly 46,000 UAW workers began striking nationwide on September 16 after talks between the union and GM fell through. 

As a result, GM and its suppliers are facing massive losses, and there has been a spike in strike-related unemployment claims. The Michigan Unemployment Insurance Agency estimates that a third of the 15,000 claims made through late September relate to the strike.

UAW workers on the strike line have been earning a fraction of their salary for the past month, earning only $250 per week.