GM offers wage increases, hefty bonuses in UAW contract fight

UAW Local 5960 member Kinethia Black fills the brakes of a 2022 Chevrolet Bolt EUV during vehicle production on Thursday, May 6, 2021 at the General Motors Orion Assembly Plant in Orion Township, Michigan.

Photo by Steve Fecht for Chevrolet

DETROIT – General Motors on Thursday offered its largest four-year wage increase in decades as part of a new contract proposal to the United Auto Workers, as the automaker attempts to avoid another costly strike by its unionized workforce.

The wage increase for most of GM’s roughly 46,000 UAW-represented workers would be 10%, while newer employees would be eligible for up to a 56% increase in wages over the four years of the deal, the company announced Thursday after meeting with union leaders and negotiators.

The proposed contract also includes two additional 3% lump sum payments resulting in a total increase of 16%; $5,500 ratification bonus; $6,000 one-time inflation-recognition payment; and $5,000 in inflation-protection bonuses over the life of the agreement (in-progression employees are eligible).

Despite the proposed wage increase being the largest under a UAW contract since 1999, it still falls far short of the union’s demands of 40% hourly pay increase, a reduced 32-hour work week, a shift back to traditional pensions, elimination of compensation tiers, and restoration of cost-of-living adjustments, among other items on the table.

The UAW did not immediately respond for comment.

This is a developing story. Please check back for additional updates.

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