FACTBOX: Key facts from the GM-UAW agreement

Fri Sep 28, 2007 4:44pm EDT
 
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DETROIT (Reuters) - The United Auto Workers union's council of local leaders voted unanimously on Friday to recommend that members at General Motors Corp approve a new four-year contract that ended a 2-day strike this week.

Following are several key points in the tentative agreement that UAW officials would like to see ratified by October 10. The UAW expects the contract to serve as a template for talks with Ford Motor Co and privately held Chrysler LLC.

* GM to pay $29.9 billion in cash and other assets to prefund a health-care trust -- a Voluntary Employee Beneficiary Association, or VEBA -- that takes effect in January 2010.

* GM commits to retain current production at 16 assembly plants through the four year contract. GM also committed to investments and future products for 12 of those plants and could allocate production to two others, depending on demand.

* A $3,000 signing bonus and lump sum payments through the life of the contract in lieu of raises. The cost-of-living protection formula was maintained.

* A GM commitment to hire 3,000 temporary workers as permanent GM employees, who would also be eligible for the $3,000 signing bonus and would receive traditional wages.

* GM may hire entry-level workers at wages as low as $14 per hour for non-core jobs that include materials movement, general stores management, finished vehicle driving and other tasks. The would also be covered by a defined benefit plan and a separate health-care plan.

The UAW said the wage rates were modeled after the UAW agreement with Delphi. The UAW did not specify how many workers would fall into the category.

(Reporting by David Bailey and Poornima Gupta)

 

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