About 48,500 General Motors Co workers at U.S. factories will begin considering the details of a proposed four-year contract on Tuesday that represents the first labor deal for the automaker since its 2009 bailout by the Obama administration.
Local leaders from the United Auto Workers union are scheduled to meet on Tuesday in Detroit to review and approve the deal, which will then be sent to a ratification vote by GM workers expected to be completed within a week.
Chrysler, which is controlled by Fiat SpA, has insisted that it hold the line near its current level of about $49 per hour in average wages and benefits. By contrast, GM and Ford are higher, at $56 per hour and $58 per hour respectively.
Sources with knowledge of the proposed GM contract have said it includes recalling about 570 laid off GM workers, one-time bonus payments of about $5,000 and bringing new assembly work to an idled Tennessee plant that had been the home of the Saturn brand.
Workers hired at a second-tier entry level wage of about $15 per hour under the 2007 agreement between the union and U.S. automakers would also receive wage increases of about $2 per hour under the proposed deal.
Workers at Ford, which did not take a government bailout, have indicated that they expect a better deal than the one just negotiated with GM. Ford funded its turnaround on its own and workers retained the right to strike at the No. 2 automaker.
The UAW has hoped to use new labor agreements with the Detroit automakers as a springboard to winning first-ever contracts to represent workers at U.S. factories operated by Japanese, Korean and German automakers.
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Category: Business/ Economy
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