economy

History is filled with searches for Magic Bullets.

Economically speaking, those are quick-fix endeavors that promise to fix sour economies, provide jobs and bring prosperity to communities and regions. Changing Gears reporter Kate Davidson wrote earlier this week that, “Some have soared; many have backfired.”

Communities across the Midwest are employing a new round of Magic Bullets in attempts to rescue themselves from the Great Recession. All sound promising, but which ones stand up under further scrutiny?

General Motors officials said they will "create or retain" 418 jobs with a $325 million investment at a suburban Detroit transmission plant. The company says it will invest "in tools and equipment to support production of future electric vehicle components."

So which is it? Are they creating or retaining the jobs?

According this report in Crain's Detroit Business, 360 jobs will be created at the plant in Warren, Michigan as a result of the new UAW contract:

The company would not say how many of the 418 jobs will be new positions. But a summary of GM’s new four-year contract with the UAW said 360 jobs will be added at the plant for a new transmission that originally was to have been built in Mexico. The union said that the jobs were brought to the U.S. as part of the new contract.

At this point, GM is not revealing the timing for the project.

According to GM, 679 current employees at  the plant in Warren make transmissions for the Chevrolet Traverse, Buick Enclave, GMC Acadia, and the Chevrolet Malibu sedan.

From a GM press release:

“This investment in the future recognizes the excellent work force and operation of this plant,” said GM Manufacturing Manager Gerald Johnson. “While we aren’t sharing many details about this product, I can tell you that this investment demonstrates how GM, working with our UAW partners, continues to innovate and bring new electrification solutions to our customers.”

The 2.1 million square-foot plant, equivalent to the area of 15 city blocks, produced more than 338,000 transmissions in 2010.

“We are very proud of the membership of UAW Local 909 whose hard work and dedication to building quality products is why this new electric drive unit module is being built in the United States,” said Joe Ashton, UAW vice president representing the GM Department.  “These good paying, middle class jobs are very important for the State of Michigan and the Metro Detroit area.  It is the UAW’s goal to increase employment at GM and show the world that we can compete with anyone.”

While we’re on the subject of magic bullets, please indulge this brief sidebar.

Schisms happen.  There was once a tremendous split between the (now) Roman Catholic Church and the (now) Eastern Orthodox Church.  Today there’s also a Great Schism in the bullet world.

Namely, between those who say magic bullet and those who say silver bullet — both parties referring to an economic quick fix.

On one side, you have President Obama, who may be the highest profile proponent of the term silver bullet. While pitching his jobs plan to a recent joint session of Congress he said, “It should not be nor will it be the last plan of action we propose. What’s guided us from the start of this crisis hasn’t been the search for a silver bullet. It’s been a commitment to stay at it, to be persistent, to keep trying every new idea that works.”

Vice President Joe Biden will be in Michigan today to tout the President’s Jobs Bill. But Michigan Congressman Tim Walberg says the $447 billion bill will hurt, not help the nation’s economy.    

Walberg is a Republican. He says the bill would increase spending and raise taxes. And he says that’s not what the economy needs to create jobs. Walberg says the nation may be better off  if Congress doesn’t pass a jobs bill this year.   

"At the very least, if we hold some things back that would be hurtful to our economy, that’s getting something done.  Maybe that’s the process right now…if there isn’t a willingness to negotiate," says Walberg.   

Walberg says he hopes a compromise can be reached which will reduce payroll taxes and spur job growth.

In his economic forecast for Michigan released today, George Fulton, Director of the University of Michigan's Research Seminar in Quantitative Economics wrote that Michigan's economy is recovering from hitting bottom in late 2009, "but it has not been a smooth climb, especially during 2011."

The Detroit Free Press writes that Fulton cut his jobs forecast for 2012.

...he expects just 33,000 new jobs next year, down sharply from his earlier forecast of 61,500 positions.

Fulton expects the total number of jobs created from late 2009 through 2013 to be 187,000.

From the report summary:

The continuation of the recovery is supported by steadily rising vehicle sales and an improved U.S. economy over the next two years. Manufacturing continues to grow through 2013, but the largest job gains are in the service industries, led by health services and professional and business services. Government continues to shrink over the period.

Update 1:03 p.m.

More details of the UAW-Ford agreement emerged after the UAW's press conference. UAW vice president Jimmy Settles reports winning a "a $6,000 settlement bonus for workers and $7,000 in inflation protection and competitive lump-sum payments over the term of the agreement."

Settles said workers will receive a payment averaging $3,700 this year.

Entry-level wages for new Ford workers are similar to the GM agreement. Their hourly pay was raised to $19.28 over the term of the agreement.

The union details where the investments in jobs and upgraded auto plants will occur in the U.S. saying that "jobs, investment and product guarantees in the tentative agreement include":

• Flat Rock, Mich., second source for the next generation Fusion and next-generation Mustang.
• Kansas City, Mo., in-source Transit Commercial Van from Europe.
• Louisville, Ky., new unnamed vehicle in addition to 2012 Escape.
• Wayne, Mich., in-source C-Max from Europe in both hybrid and plug-in hybrid models.
• Avon Lake, Ohio, in-source medium truck and frame assembly from Mexico, along with in-source Motorhome Chassis.

The agreement with Ford was recommenced to the union's larger membership. Now all UAW members will vote for or against ratification this week.

10:27 a.m.

The agreement reached between Ford Motor Company and United Auto Worker representatives will lead to more jobs and investment in the U.S., according to the Detroit News.

Alisa Priddle of the Detroit News reports that many of those jobs will be in Michigan:

The figure includes 7,000 jobs previously announced as well as 5,000 additional jobs - the majority of them new and paying the lower, entry-level wage. Ford officials declined to break down the exact split between new and saved jobs. Some the jobs are from in-sourcing of work that has been previously done in other countries, including Mexico, Japan and China.

The UAW says that "proposed agreement also includes $16 billion of investment to produce new models and upgraded vehicles and components by 2015, of which, $6.3 billion will be invested directly into retooling and upgrading plants."

Ford's union workers are demanding more from Ford compared to the workers at GM and Chrysler.

Part of it has to do with bargaining from a position of power. Ford's union workers could strike should an agreement not be reached. Chrysler and GM workers do not have that option. Both Chrysler and GM took loans from the federal government's Troubled Asset Relief Program (TARP). A condition of those loans stipulated that its workers could not strike.

Brent Snavely reports in USA Today on the other reasons workers at Ford hope to achieve more in their negotiations with the company.

Entering contract talks, the UAW and Ford had an unresolved grievance, signed by 35,000 of the automaker's 40,600 workers, alleging that Ford had violated equity of sacrifice promise by restoring merit pay to white-collar workers but not to hourly workers.

But Ford workers say they have more reasons to expect more than UAW members at GM. Ford has made $14.2 billion in profits since the end of 2008. Ford CEO Alan Mulally and Executive Chairman Bill Ford each made $26.5 million in 2010, an amount that many workers find excessive since production workers have gone eight years without a base wage increase. That high executive pay has become a rallying point for discontents in Ford's factories.

Comparing previous contracts, Snavely reports that "Ford pays $58 an hour for wages and benefits, which is about $2 more per hour than GM and $9 an hour more than Chrysler were paying..."

More details of the tentative 4-year agreement between Ford and the UAW will be revealed at an 11:30 press conference. The contract will not be ratified until the UAW membership votes on it.

Update 2:28 p.m.

Michigan Radio's Sarah Hulett spoke with Mayor Dane Walling this afternoon. She asked Walling to give us a snapshot of where the city's finances are at now.

"The city of Flint has ongoing challenges with long-term operating deficits and also recurring questions about month to month cash availability," he said.

"The fact is, in recent months we've made continued positive progress.

The deficits in the audit will be approximately $12 million all funds combined. That's significantly down from the upwards of $20 million projections that had been done recently.

The cash flow is much stronger than it was prior to receiving the support of the state for the fiscal stabilization bond.

We're healthier than we were, so we're moving in the right direction, but we continue to have audited operating fund deficits, and to address the longer term challenges with post employment benefits  and liabilities there," said Walling.

Hulett asked Walling about his message to voters about the job he's doing in Flint and about the timing of the state review (Walling is up for re-election, and the review will be completed right before voters head to the polls). Walling said he thinks voters understand the complications he faces as the Mayor of Flint, and he looks forward to the results of the state review team.

1:49 p.m.

The city of Flint has been facing financial trouble for some time. Now state officials want an official review of the city's finances.

Governor Synder has appointed an eight member panel to review the city's bottom line. The financial review is the first step in a process created under the state's emergency manager law. Governor Snyder has said he hopes an emergency manager is not needed in Flint.

Kristin Longley of the Flint Journal reports that Governor Snyder is calling for a quick review:

Snyder wants the team to report back to him in half the time allowed under the law. Review teams are given 60 days, but Snyder has asked Flint's financial review team to report its findings within 30 days, Snyder spokeswoman Sara Wurfel said.

"He does want it sooner," she said. "That was on the recommendation from the state treasurer."

Here are the eight members appointed to review Flint's finances (from the Flint Journal):

• Laura Argyle, VP of finance and CFO for the Midland Center for the Arts
• Gene Dennis, former president and CEO of Universal Systems
• Darnell Earley, Saginaw City Manager
• Robert L. Emerson, former state budget director
• Roger Fraser, Deputy State Treasurer
• Fred Headen, Director of the Michigan Dept. of Treasury’s Local Gov't Services Bureau
• Doug Ringler, Director of the Office of Internal Audit Services in the Department of Technology, Management and Budget
• Brom Stibitz, senior policy adviser in the Michigan Department of Treasury
  

I'm on assignment in China following Governor Snyder's trade mission, and I'm sharing my thoughts as I travel. Feel free to write me back in the comments below.

Nearing the end - Friday, September 30

The Governor's trade mission is coming to an end, and so is my trip to China.

I won't miss the smog and pollution, either in Shanghai (bad) or Beijing (worse).

But it has truly been too short a trip to get more than a glimpse of everything that is happening with China's economy, its auto industry, and its cultural and population shifts.

Frank Langfitt in Shanghai and Louisa Lim in Beijing surely have two of the biggest, most exciting beats in public radio.  This fly-in reporter leaves the country in their incredibly capable hands.

Adventure travel

My adventures with taxis continued.

I am starting to take this a little personally.

Arriving back in Shanghai from Beijing, I got in the long queue to get a taxi to my downtown Pudong hotel.

I decided I'd be a discerning and demanding customer this time around.  I rejected several taxis that had no seat belt in the back.  But when I found a taxi that was suitably equipped, and showed the driver the address to which I wanted to be taken, he shook his head, and drove up to grab the fellow who was behind me in the line.

The next taxi cab driver whose cab had seat belts did the same thing.  I asked  the airport employee who was in charge of the queue to help, but he spoke no English.  Nor did the first ten or so people in line.

Paying it forward

Finally, however, an angel arrived at the queue.  Deserine Lim, fluent English-speaker and rescuer of helpless American travelers.  She looked at my hotel address and explained that the taxi drivers didn't want me because it was too close, and they wanted a bigger fare.  Ouch.

Then, without my even thinking to ask, she suggested I split a cab with her.  She'd drop me off at my hotel, and continue on to her destination.

I'm not a Tennessee Williams fan for nothing.  I, too, have always relied on the kindness of strangers.  I got in the cab gratefully.

My rescuer is a native of Singapore, she told me, visiting Shanghai just for a day on business.  But she knows the town well, and told me what shops to go to near my hotel, what restaurants to haunt.  We discussed American politics.

When we arrived at my hotel, I paid the fare, and since it was clear her favor to me was going to cost her, both in terms of time and money, I tried to give her some money to cover the extra distance.

She adamantly refused to take it.

So, I shall have to content myself with paying it forward some day.

Ms. Lim is Assistant General Manager of OSIM, a global provider of personal, health and convenience products headquartered in Singapore.  OSIM is a co-owner of Brookstone, a company that provides such products in the U.S.

Thanks, Deserine.  You're a peach.

Next stops before home

Next stop for me:  Shanghai Jiao Tong University, where I'll visit the Joint Institute between SJTU and the University of Michigan.

I also plan to go to a shopping mall with my SJTU interpreter, Paul (Kang Yiping) to ask people about transportation issues.

Then, another interview with a Ford China official, to learn more about the company's strategy to ride the next wave of demand for vehicles in the country.

And tomorrow morning, I'll be on a non-stop flight from Shanghai to Detroit.

They say the jet lag is a lot worse coming back.

Michigan Radio, don't call me.  I'll call you.

Arrived in Beijing - Wednesday, September 28:

I am in Beijing.

I arrived on the fourth consecutive day of a smog health advisory in the city.  Children are not supposed to play outdoors, and people with chronic health conditions are being urged to stay inside. Even if you are healthy, the smog is very irritating to your eyes and throat.

Michigan has never seemed cleaner. Even the worst Ozone Action Day in Michigan in August can't hold a candle to this.

Shanghai was windy while I was there earlier in the week. We need a good strong breeze to get this stuff out of the city, so people can breathe.

The Chinese government knows it has a potential crisis on its hands, as more people move into the cities, and more of them purchase cars.  That's why the government adopted a five year plan to vastly increase the number of electric cars in China.

The big problem with that is infrastructure.

DETROIT (AP) - General Motors Co. said Thursday it will install a center air bag on three of its models next year to better protect drivers and front-seat passengers.

The new bag inflates from the right side of the driver's seat and is designed to protect people when their vehicles are hit on the opposite side of where they are sitting. They serve as a cushion between a driver and front-seat passenger in a collision, GM said in a statement.

The bags will come standard on all Buick Enclave crossover vehicles starting in the 2013 model year, and they'll be on the Chevrolet Traverse and GMC Acadia crossovers that are equipped with
power seats. The 2013 models will come out in the fall of 2012. Crossovers are like SUVs but are more efficient because they're built on car underpinnings rather than trucks.

GM said in the statement that the center air bags, developed with parts supplier Takata Corp., are the first in the industry. It has plans to put them in more of its models, but the company would
not say which ones.

GM said it analyzed the National Highway Traffic Safety Administration's database of fatal auto accidents and found that crashes on the opposite side of where people sit accounted for 11 percent of deaths in non-rollover crashes from 2004 through 2009. The company said it checked crashes involving passengers wearing seat belts in vehicles from the 1999 model year or newer models.

The center air bag also is expected to help protect passengers in rollover crashes, the company said.

Shares of GM rose 11 cents to $20.52 in morning trading. They are down 38 percent from the November initial public offering price of $33 per share.

*Editors note - This story by Kate Davidson of Changing Gears was first broadcast last year (September 22, 2010). Now that GM and the UAW have agreed to a new contract that will allow GM to hire more "two-tier" workers (newly hired workers paid a lower wage than traditional workers), we thought we'd bring her story on "two-tier" workers back. As Micki Maynard of Changing Gears points out, only about 4 percent of GM's workforce is "two-tier" now - under the new contract, that number could go up to 25 percent.

The American Dream is that each generation will do better than the last.  But many families of auto workers no longer have that expectation.  As Detroit car makers sped towards financial ruin, their union agreed to a dual wage structure, plus deep cuts in benefits.

Now, new hires earn about half what traditional workers make.  This reversal of fortune has altered their lives.

Update - 3:07 p.m.

More thoughts on the newly ratified UAW-GM contract from Micky Maynard with Changing Gears:

General Motors gave some new details today on its just-ratified agreement with the United Auto Workers union. Among them: up to 25 percent of its workforce could be “two-tiers” — new hires at lower rates than veteran workers.

Changing Gears reporter Kate Davidson profiled two-tier workers last year. Right now, they’re only 4 percent of GM’s workforce, but the auto company clearly has plans for more of them.

There’s a caveat, though. In order for GM to hire more workers, auto sales have to pick up, company executives said during a conference call with Wall Street analysts. And it isn’t promising to hire the same number of workers as it sees sales go up: it will study its staffing needs and hire accordingly. 

The new contract runs through 2015 and caps the number of “two-tiers” at 25 percent at the end of the contract. It calls for the new hires to get a raise to nearly $20 an hour by 2015 (veteran workers are paid about $28 an hour now).

Other GM highlights:

• The number of people working in its U.S. factories has dropped sharply. GM had 110,000 hourly production workers in 2005, according to its presentation. In 2008, the year before it filed for bankruptcy production, GM had 78,000 U.S. workers. Now, GM has just 49,000 hourly workers, or less than half what it had six years ago.
• For the first time in 58 years, GM does not expect its pension expense to rise under the new contract. One reason is that newly hired workers will not be covered by GM’s traditional pension plan; they will receive a 401(k) retirement program instead.
• GM says it still has 700 workers laid off from their jobs. They have first dibs on jobs at GM plants, including the workers it plans to hire when it reopens its factory in Spring Hill, Tenn. Once those workers have been offered the chance to come back, then GM will hire new workers, including temporaries.

Read more about the GM contract in The New York Times.

1:05 p.m.

More from Pete Bigelow of Changing Gears:

General Motors became the first domestic automaker to reach an official agreement on a new contract with members of the United Auto Workers union Wednesday afternoon.

The UAW said in a written release that 65 percent of production workers and 63 percent of skilled trade workers voted in favor of the agreement, which had been tentatively agreed upon Sept 16. A four-year contract provides a wage increase for entry-level workers, and goes into effect immediately.

The agreement would create 6,400 jobs in the United States, the release said.

“When it seems like everyone in America is getting cuts in benefits and paying higher co-pays and deductibles, we were able to maintain and improve on our current benefits,” said UAW vice president Joe Ashton.

GM CEO Dan Akerson is expected to hold a conference call with Wall Street analysts at 2 p.m.

12:37 p.m.

The deal is complete. UAW members officially ratified their contract with General Motors.

From the Detroit Free Press:

The UAW said today that its members have ratified a new four-year labor agreement with GM that gives workers a $5,000 signing bonus and is expected to preserve or add 6,400 U.S. jobs.

It is the first contract for 48,500 GM hourly workers since the automaker’s 2009 bankruptcy and restructuring.

The union said the vote was 65% in favor of the agreement among production workers, and 63% in favor among skilled-trades workers.

On his trade mission to Asia, Governor Snyder praised a business partnership between a Japanese company and the Michigan Molecular Institute (MMI).

The partnership between Japan's ECO Research Institute (ERI) and MMI is expected to bring around 30 new jobs to Midland.

Snyder made his comments at the Japan Midwest U.S. Annual Conference today praising the partnership "as an example of the economic and technological benefits that Michigan and Japan stand to gain through greater cooperation."

The two companies will form a new company called ECO Bio Plastics Midland Inc. The new company will produce bio-plastic pellets made of compound  mixes of plastics and micron-sized dry powder made from shredded paper.

These pellets will be used as packaging materials, food service products, heat insulation applications, and toys.

The Midland Daily News quoted James Plonka, president and CEO of Michigan Molecular Institute:

Plonka noted EBP has chosen a site for the new Midland facility, with the expectation to break ground before November and to begin production next summer.

“Midland is a good location for the demonstration facility for a couple reasons,” Plonka said. “First, because of the paper shredding services provided by the Arnold Center, Midland, is an excellent source of paper feedstock. And secondly, some of the most innovative plastics research in the world occurs in Midland. It’s a natural fit.

The plan calls for the initial paper-plastic composite production facility to produce 10 million pounds per year, with the ability to grow to 100 million pounds per year, Plonka said.

Former Governor Jennifer Granholm’s book, “A Governor’s Story: The Fight for Jobs and America’s Economic Future,” is on bookstore shelves. It offers her perspective on eight years in the job she described as the toughest facing any governor in the U.S.

She battled budget shortfalls, Republicans in the Legislature, and skeptics of federal efforts to bail out the Detroit auto industry.

Granholm and her co-author, former First Gentleman Dan Mulhern, spoke with me about the book and her legacy.

Jennifer Granholm says she wrote “A Governor’s Story” to offer her  prescription for the nation’s economy to lower taxes and smaller government. She says it’s based on her experience, and an often trial-and-error road to an economic strategy that can work for the entire nation.

“We’ve got a story to tell. So for everybody who cares about how to crack the code to create advanced manufacturing jobs in the American economy, we’ve got the story to tell.”

DETROIT (AP) - Moody's Investors Service is considering upgrading General Motors Co.'s credit ratings based on improvements in its finances and the expected ratification of a new contract
with the United Auto Workers union.

GM currently has a Ba2 corporate family rating and a Baa3 secured credit rating from Moody's. Both are several notches below investment grade. GM lost its investment-grade ratings in 2005,
when it was losing billions of dollars.

GM and the UAW reached a tentative agreement on a new contract last week. Workers are expected to finish voting on it by next Thursday.

Moody's said that after an initial review, it expects the contract would let GM remain competitive in North America. The deal would pay workers a $5,000 ratification bonus and profit-sharing
checks, but it helps GM lower costs by not giving annual raises to most workers and offering buyouts to clear out older, more expensive workers.

"A critical issue in our review is whether the new contract will preserve's GM's new-found  competitiveness and support its ability to contend with increasing volatility in the global economy," said Bruce Clark, a senior vice president at Moody's.

Moody's review also will consider GM's long-term commitment to the discipline it has adopted since its 2009 government bailout and bankruptcy. Moody's said it will look at whether GM will continue
to limit production and incentives, improve quality and limit acquisitions and shareholder returns in order to strengthen liquidity.

GM's stock fell 72 cents, or 3.4 percent, to $20.56 during a broader-market selloff. The Standard & Poor's 500 was down 3 percent in late morning trading.

MILAN (AP) - The ratings agency Moody's has downgraded the credit rating Fiat SpA citing financial risks tied to the integration with Chrysler Group LLC.

Moody's on Wednesday downgraded the Italian automaker to Ba2 from Ba1.

The ratings agency said it expects integration of the two automakers will mean they will have "to support each other in the event of financial difficulty."

Fiat took an initial 20 percent stake in Chrysler in exchange for engine technology and management prowess. It currently holds a 53.5 percent share.

Moody's said it made the downgrade even though Fiat does not guarantee Chrysler's debt, and that the two companies' finances remain separate.

A report by the Economic Policy Institute looked at the growing trade deficit between the U.S. and China and its effect on jobs.

The group found the trade deficit with China has been a "prime contributor to the crisis in U.S. manufacturing employment."

From the report:

Between 2001 and 2010, the trade deficit with China eliminated or displaced 2.8 million jobs, 1.9 million (69.2 percent) of which were in manufacturing. The 1.9 million manufacturing jobs eliminated or displaced due to trade with China represents nearly half of all U.S. manufacturing jobs lost or displaced between China’s entry into WTO and 2010.

The report finds that the number of Michigan jobs displaced by the trade deficit with China totaled 79,800. That accounts for 1.75 percent of total employment in the state in that time period.

Despite being a heavy manufacturing state, Michigan was not the hardest hit state by the trade imbalance.

From the report:

Jobs displaced due to growing deficits with China exceeded 2.2% of total employment in the 10 hardest-hit states (i.e., jobs lost or displaced as a share of total state employment): New Hampshire (19,700, 2.84%), California (454,600, 2.74%), Massachusetts (88,600, 2.73%), Oregon (47,900, 2.71%), North Carolina (107,800, 2.61%) Minnesota (70,700, 2.61%), Idaho (17,400, 2.54%), Vermont (7,800, 2.37%), Colorado (55,800, 2.30%), and Rhode Island (11,800, 2.24%).

The report concludes, "the U.S.-China trade relationship needs a fundamental change. Addressing the exchange rate policies and labor standards issues in the Chinese economy are important first steps."

Update 2:31 pm:

This story was clarified at 2:00 pm to say that the $5,000 bonus was for ratification of the contract.

Pay raises for entry-level workers, five-thousand dollar bonuses for ratification, and better profit sharing. Those are among the highlights of the four-year contract local UAW leaders will recommend to General Motors’ 48,500 hourly workers.

UAW President Bob King says the union bargained a “great framework” for all three Detroit automakers.

    "They’re in different states of financial health, different states of debt. We’re hoping that this country bounces back and the European situation gets resolved – they all could be impacted by that. And we think we’ve got an agreement that helps us get through those periods of time, because we didn’t add many fixed costs to this agreement."    

The tentative contract promises to add or save 6,400 workers. Nine hundred of those are at Michigan plants.

It also provides for a $5,000 dollar ratification bonus, and raises for entry-level workers. UAW President Bob King says those workers will also see generous health care provisions – including free emergency room and urgent care visits.

"What worker being hired at any employer today starts out with the kind of health care plan that workers hiring into General Motors will have? What workers have unlimited doctor visits, $25 co-pay? Nobody."

The contract also calls for $10,000 dollar bonuses for eligible employees who retire in the next two years. Skilled tradesmen who retire between November First and the end of March would qualify for additional $65,000 bonuses.

Ratification is expected at the end of next week.

Michigan Radio's Sarah Hulett is at the United Auto Worker's press conference in Detroit today.

She's reporting on some details of the UAW's new contract with General Motors:

• Entry level wages will be bumped up to $19.28/hr over the life of the contract plus a $5,000 ratification bonus.
• Unlimited doctor appointments with $25 co-pay.
• $10,000 bonus for eligible employees who retire within the next two years.
• Additional $65,000 bonus for skilled trades who retire between November 1, 2011 and March 31, 2012.
• Jobs will be added in Michigan at facilities in Warren, Saginaw and Romulus.

UAW President Bob King says the next target for negotiations has not yet been determined.

From the Associated Press:

Union leaders from General Motors factories around the country have endorsed a new four-year contract with the company.

They are recommending that GM's 48,500 factory workers approve the deal in votes during the next week.

The agreement reached Friday includes a $5,000 signing bonus and improved profit-sharing instead of hourly pay raises for most of the workers. About 2,400 entry-level workers will get raises. They now make $14 to $16 per hour, about half the pay of a longtime UAW worker.

Profit-sharing will be a minimum of $3,500 next year.

The union now will focus on negotiations with Chrysler, and Ford will be next.

Since Chrysler isn't making as much money as GM, workers there probably won't see as good of a deal.

President Obama signed the America Invents Act today which could establish Detroit as the first city to set-up a U.S. Patent and Trademark Office outside of Washington D.C.

From the Act:

DESIGNATION.—The satellite office of the United States Patent and Trademark Office to be located in Detroit, Michigan, shall be known and designated as the ‘‘Elijah J. McCoy United States Patent and Trademark Office’’.

Patent legislation that had a big push from Michigan’s research universities and the Detroit automakers has been signed into law.

The “America Invents Act” promises to speed up the patent process, and help reduce a backlog of some 700,000 patent applications in Washington D.C.

Part of that includes opening a satellite patent office in Detroit and two other locations.  

"It really puts the patent office in one of the invention centers of the nation, which is the Detroit area," said Steve Forrest, vice president for research at the University of Michigan.