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GM says it has delivered ‘record offer’ to striking UAW: Here’s what it includes

GM says new offer includes “substantial movement” in key areas

LANSING, MI - OCTOBER 16: Striking United Auto Workers members picket at the General Motors Lansing Delta Assembly plant for the fifth week of the strike on October 16, 2019 in Lansing, Michigan. The UAW and GM reached a tentative deal on a new labor contract today that could end the longest UAW strike since 1970. (Photo by Bill Pugliano/Getty Images) (Bill Pugliano, 2019 Getty Images)

DETROIT – General Motors says it has delivered what it calls a “record offer” to the striking United Auto Workers union on Friday.

The UAW has been on strike for more than five weeks at all three Detroit automakers. The UAW delivered an update on Friday following this offer being made public, saying in part, “there is more to be won.”

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GM said the new offer includes “substantial movement” in key areas between the two sides.

“Today, General Motors provided a comprehensive offer to the UAW. We have made substantial movement in all key areas in an effort to reach a final agreement with the UAW and get our people back to work.”

“The offer on the table is the most significant that GM has ever proposed to the UAW and recognizes our team members for all their dedication and contributions. The majority of our workforce will make $40.39 per hour, or roughly $84,000 a year by the end of this agreement’s term. We also continue to provide world-class health care with no out-of-pocket premiums or deductibles for seniority team members.”

“It is time for us to finish this process, get our team members back to work and get on with the business of making GM the company that will win and provide great jobs in the U.S. for our people for decades to come.”

Here are some bullet points on what the new offer from GM includes:

  • 23% general wage increases representing a 25% compounded wage increase over life of agreement, with 10% increase Year 1. UAW represented employees at GM will make $40.39/hour or ~$84,000/ year* in base wages by end of agreement
  • Reinstatement of COLA for seniority team members starting Year 1
    • Wage increases combined with forecasted COLA payouts to increase team member pay by over 30% in this contract, GM says
  • Job security: Since Sept 2019, GM has invested more than $13 billion across more than 20 U.S. plants; product commitments for every plant and opportunities for all team members
  • Up to 5 weeks of vacation, Juneteenth, and 2 weeks of paid parental leave
  • Faster path to max wages: within the life of the contract, all seniority employees reach max wage rate
  • All active full-time temps with one year of employment will be converted to seniority at ratification and going forward
  • Temporary team member wages increased by 26% to $21/hour
  • Profit sharing now available for temporary team members who have worked at least 1,000 hours
  • Retirement: Company contributions increased by 25% (from 6.4% to 8.0% of wages) for active in-progression team members, regardless of your contribution

---> More coverage of the UAW strike


About the Author
Ken Haddad headshot

Ken Haddad has proudly been with WDIV/ClickOnDetroit since 2013. He also authors the Morning Report Newsletter and various other newsletters, and helps lead the WDIV Insider team. He's a big sports fan and is constantly sipping Lions Kool-Aid.

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