UAW Workers Rejoice: Big Three Contract Approved for 4½ Years!
Automotive manufacturing giant General Motors, Ford and Fiat Chrysler have seen an agreement by union members of the United Auto Workers which is said to raise wages for thousands of union members. The Detroit-based automakers proposed a four-and-a-half-year labor contract and it was recently approved by the union’s members. This is touted to be the largest wage hike since 1972 as it will provide members with two 3% wages increase and two 4% lump-sum bonuses. In addition to the wage increase, UAW members will receive a one-time signing bonus of $5,000, combined with a ratification bonus of $3,000 and lump-sum bonuses ranging from $1,000 to $4,500. The newly agreement also adopted the pattern of increasing wages every year. The contract approved also provides for 5% pension increases and guarantees that the automakers will honor the existing health care plans. It will also see an increase in the amount of profit sharing paid out by the automakers. The new labor contract comes after months of negotiations between the automakers and the union, which largely revolve around wages, benefits and employee rights. These talks were held in an effort to make sure that the workers received fair compensation for their efforts. The new deal is also expected to provide the automakers with numerous economic benefits. These include reduced turnover and improved performance, higher quality products and increased returns on investments. The new contract certainly seems to be a win-win for all parties involved as it provides both the automakers and the union members with increased wages and benefits. This agreement is expected to be beneficial for the Detroit-based automakers as it helps ensure their future success.