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Subscribe to RSSBy a 2-to-1 margin, unionized workers have approved a new four-year contract with General Motors that includes a $5,000 signing bonus and raises entry-level wages.
The contract, which is effective immediately, covers 48,000 members of the United Auto Workers union. The union said the new contract would result in 6,400 new U.S. jobs at GM plants plus thousands more at suppliers and related businesses.
"When it seems like everyone in America is getting cuts in benefits and paying higher co-pays and deductibles, we were able to maintain and improve on our current benefits," UAW vice president Joe Ashton said in a statement on the union website. "Most significant for our members, we were able to add unlimited $25 doctor's office visits. To the credit of GM and the UAW, this improvement will both increase the long term health of our members and reduce overall plan costs."
Union officials also gave credit to President Barack Obama for extending federal help to GM when the company was forced to seek bankruptcy protection in 2009. Obama was criticized for using taxpayer money to help GM, with some calling GM "Government Motors" for the aid it received.
Besides the signing bonus, union members are eligible for up to $4,000 in "inflation protection" and other payments over the life of the contract, plus an improved profit sharing plan.
Negotiators for the two sides reached a tentative agreement on the contract Sept. 16.
The UAW said 65 percent of production workers and 63 percent of skilled trades workers voted in favor of the deal.
GM executives have set a conference call with Wall Street analysts for Wednesday afternoon to explain the financial implications of the contract, Reuters reported.
UAW officials are negotiating a new contract with Ford and said Monday they expected "to have good news for our membership by the end of the week." But discussions at Chrysler are progressing more slowly.
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That sure was nice of Obama to give all of that money and a company yo yjr UAW. Of course he did it with taxpayer dollars.
Good for the UAW! Unions are the backbone of the middle class. If you are not unionized you do not have any voice in Washington. Workers unite!
RanRan = WrongWrong. Unions are expensive dinosaurs. Check the numbers.
And I believe the 2010 midterms showed who has a voice in DC.
I know right ProudAmerican,
Obama gave a nice huge middle finger to the private sector that was first to be paid in bankruptcy. Now the paper they owned is worthless, and the Unions are now going to bankrupt Government motors again.
Its alright though, let them fail and all the UAW jobs with it. Junk GM cars and unions cant compete with the quality coming from overseas.
Remeber Proud - the words Union and efficiency are opposites
RanRan, Don't you think it's at all interesting that somehow GM (just out of bankruptcy and receiving significant federal[taxpayer] incentives to promote their products) is able to cut a cherry deal for the UAW?
Let's give this perspective, ok?
2009- GM going out of business. Then get's taken over by the federal government and bailed out. Stockowners get pushed to the back of the line in bankruptcy proceedings.
2010- Company gets restructured giving the UAW a seat on the board of diretors, using taxpayer dollars to fully fund UAW pension plans(but not GM's salaried workers- non-line workers) and restructuring any future bankruptcy such that the UAW is a top recipient of remaining funds. GM "pays off" federal loans with other federal loans. Federal government provides significant incentives for buying GM products including (IE- First 200,000 Volts sold get $7,500 federal tax credit) in attempts to make the GM products cost competitive with other manufacturer's products on the market.
2011- GM CEO pushes for IPO, then leaves. Now the UAW get's a great contract renewal that gives them $5,000 signing bonuses, better health care benefits, $4,000 in "inflation protection", and more guaranteed union jobs(6,500). Something stinks here.
Let's see, would you have rather had GM go under? Then you would have blamed Obama for even higher unemployment numbers. He helped save the US auto industry and this is great news for unions and businesses - it shows that collective bargaining works... Or would you rather go with the Walmart model, Low wages, crappy benefits and no voice in the company?
JoeNY,
I love people like yourself can twist facts to meet what they want them to be, do you many of us can still remember back to 2008, and we can read.
The stock and bond holders of old GM got a share of the new company, the UAW did not get any shares, the VEBA for health care for retired workers did, buit that was to pay off a huge over $20 Billion debt they were owed. Them my fact twister are the real facts.
Edward- Bankruptcy isn't and doesn't usually work that way. On GM, from the USAToday:
"Just a quick recap on the sad GM story for former investors. General Motors' stock continued to crash into early 2009 as the domestic car market shriveled. Then on June 8, 2009, the company entered bankruptcy and the proceeding stripped GM into bits and pieces. Investors in the former GM were left with shares of what's known now as Motors Liquidation (MTLQQ). These shares trade for 9 cents a share, or are essentially worthless.
Meanwhile, former GM shareholders have to suffer through the splashy IPO of the new General Motors under the same symbol, GM. The new stock has a successful debut as an initial public offering and shares are already trading higher as investors anticipate a better domestic car market. Renaissance Capital named GM the IPO of the year."
Stockholders got the shaft and the UAW was given priority over the investors and made whole with money that was not theirs to give to the UAW. On the topic of the UAW, from the Detroit News:
(The UAW received) "...17.5 percent ownership of a restructured GM that will go to the union's retiree health care trust, along with warrants to buy another 2.5 percent of company stock. That trust also gets $6.5 billion in preferred shares. The stock comes in lieu of cash to meet part of GM's $20 billion obligation to the fund."
Sounds like they received partial ownership to me. They also received a seat on the board of directors.
Mav-3674058,
so if one bails out GM they are a hero, bail out the banks and your evil right?
funny how the left and the right sound more and more alike, let the bank investors lose money for bad investments, let auto workers get laid off over bad management.
so are you just a two faced puppet or do you support the pathetic bank bail out as well?
Of course, the GM union workers don't have to put up with what the rest of america's workers have to. Obama made sure the taxpayers guaranteed the union's would not suffer what others are suffering. Hurry 2012.
Voter Block Envy. No one is listening to your lone voice, are they?
Seems some are listening, how about your post?
How can there be signing bonuses, benefit increases and pay increases when GM and Chrysler screwed the taxpayers out of $14 billion?? I'll never buy another GM product for the rest of my life.
You never get your panties in a bunch when you hear mantadory CEO pay in the millions for all the ceo's and they have thousands making millions but let them put in a signing bonus in print on a article on people who make living wage and post it that if you jump through all these hoops you may or may not get then you hear noise from the peanut gallery about what they don't have. You sound allot like the Tea party crackheads that cheer the mention of repealing health-Care and letting people die if there insurance don't cover the cost when they drop it. Nut cases.
Mandatory CEO pay? What CEO pay is manatory? Unions and their contracts drive up costs, and consequently consumer prices. There is no denying that. But I suppose you would say that is all in the greater good.
what is madatory CEO pay? If a private company took no money in bailouts then it is no one's business what they pay CEO's or anyone else. When it comes to companies bailed out under Obama or Bush. Then it is the taxpayers' business. I favor absolutely no bailouts for any company ever.
Yes name CEO's in America making less then 50k there are none except in China. Plan and Simple. Unions Contracts are nothing more then a bargaining Wage Agreement and Benefits between Workers and the company. Your Full of Crap if you think CEO pay is deserved anymore then Benefits Bargained in good faith by Unions and the workers in the union they represent. People know that and your Argument is Full of Crap.
I dont understand why it is anyone's business what a private company pays anyone. I have nothing against unions contracts never said that. I have a problem with companys' giving bonuses if they took money from us --the taxpayer--that goes for every company that got hand outs under Bush or Obama. I never said CEO's deserved more. That is not my business nor is it my business what Union leaders make either. I can't make that kind of judgement because I don't know the details of their job descriptions. I never said yur arguement was full of crap yet you come back with an insult to me? I thought we were sharing ideas. Guess not.
Lying, It isn't bargaining in good faith when the company(GM) cannot earn enough profit to pay the wages and benefits, and the difference is made up using taxpayer's money for the bailout. I wasn't a participant in those negotiations , although I will/have been a part of paying for those wages and benefit agreements through my taxes. Is that fair?
No it is not fair but I am sure your argument will be met with the tea party crackhead remark or the full of crap response. Guess if they can't defend their point they insult those who honestly question it.
No one getting MY money (taxes) should get bonuses when the company they work for loses money. Period. that also applies to any company that gets bailouts or government assistance.
GUess you missed all the money handed to the banks before Obama made president. LEts not forget that the CEO's of these banks came out with tons of money for their so called mismanagement of mortgage accounts..but guess what..they got way more in bailout funding than GM...I would have to assume it would be no problem for you if this country lost even more jobs. If we were to not bail out GM..why should have any of the banks been bailed out with tax payer money's ? Why should the major banks, Bank of America, Chase, Wells Fargo and others been allowed to buy up smaller competing banks when they were a huge part of the housing problem themselves ? Why not allow them to fail also ?
I havent forgotten I was against that too!!!!!
Ah shyt, it didn't take long for "its Bush's fault" to re-surface. Not surprised, that is all the inept one has.
I believe the article is about GM, the UAW, and more waste of MY money. Not about CEO's.
If you want to discuss CEOs, write about Jeffrey Immelt (Obama's jobs czar) whose company (GE) pays little to no Federal Income tax and still ships jobs (and divisions) overseas.
Good to see they passed there contract and saved more American jobs also nice to hear they are expanding adding more American jobs here in America that were slated to go out of the country. They also increased Doctor visit cost to not have a cap of visits and lowered the cost across the board for there health insurance. I hope to hear the same thing about Ford and Chrysler soon as they to have been working to expand there American based workforce and jobs here in America. I wish more American companies follow suit and we have a resurgence of American jobs here in America the don't involve fast food industry pay.
Exactly how does raising benefit value, adding signing bonuses, and otherwise raising the cost of a worker save a job, much less create any new jobs?
American-based workforce? Good Idea - talk to Immelt, Obama's jobs czar. See how he does it........
(He does the opposite)
Exactly, none of them should have gotten money... it's called capitalism and competition. Only the best should survive, not necessarily the biggest.
America Protecting American Jobs here in America Works. Doing nothing and letting them fail just so China can take them over is Tea Party Crackhead thought. But Bush Can Bailout Banks and push the New Adminstration coming in with false data to Bailout banks and Wallstreet and its all ok because that was a Republican idea right. Idiot!!!
please explain how calling people who favor the tea party crackheads or idiots helps. This is why nothing gets done in this country.
You need to drop the name-calling because you are wrong so much.
Do you any clue? TARP was a Democratic Congress initiative and THEY passed it. It all hit the fan when the Dems took control of Congress in Jan 2007.
Glad to Hear the contract was overwhelmingly passed. Nice when you hear good news about American jobs staying in America and hiring more people on in America that are American.
You should be glad the fraud for a President provided sixty billion dollars of our taxes, or GM would have gone the way most unsuccessful private businesses go, into bankruptcy, and not to the public till .
If you remember it was Mr. Bush who put 17 billion into GM after congress voted no, but go ahead and blame the president, it obviously makes you happy.
And GM came back for 40 billion more, and paid back six billion, using funds from the second bailout as their revenue source. If it makes you happy accepting that Obama is blameless after three years in office, then you aren't interested in a good economy. And all of the money is borrowed money.
Go ahead - explain how he did that since Congress passes the legislation and controls funding. Make us "happy"............
Dr Larry
It was easy he took the money from the TARP funds that had been approved and he gave it to GM and Chrysler so they could stay in business, that was at the end of 2008. Now back then we did have news and we had the same english language we have today, so if you have someone show you how to do a search, you will find the news stories that covered, since you seem to have missed it in real time. Also if you but GWB's book that he wrote, he talks all about in there, and why even though members of both sides were against it, he decided it was the right thing to do, and so done it for the country.
Hey lying Republicans. Are you sure you are not really Eric or Feisty? You talk out your azz as well as they do.
Sounds like a sweet deal....for the UAW.
you all dont get the concept here, the avg american cannot afford their product so as labor expense continues up so does cost of product. Seems to me that just being on the payroll seems like not the best reason to get a bonus but hey i am all about doing something for a bonus?! thought that was the reason it was call a bonus.
If it's so good why did it requi9re a $5000.00 bribe for them to vote for it and still 1/3 stilol voted no. Of course that's because it's the dem way like during Obamacare with the LA purchase and the Cornhusker kickback to get dem senators to vote for it. This is great because the last figure I head from the Treasury Dept is that expect to see about a 14 billion dollar loss on the GM stock that was paret of the loan gurantee, I guess that's dem accounting like Solydnra and their 435 million dollar loss of taxpayer money.
Yea Government Motors, you did it again with that incomparable GM management IQ: you ratified a contract with a union, and not only a union, but the same one that put you out of business, if it had not been for Comrade Obama stealing our taxes to prop you up, by their inability to make a car that does not rattle when coming off the assembly line! You will go broke again!
Am I the only ones who sees this? Absolutely amazing. A signing bonus, are you serious?
Liberals don't have a clue when it comes to economics, so don't expect anything from them to make sense. The only thing they want is to buy votes by keeping people dependent on the government.
Wow, $32 million in signing bonuses for the 6400 new workers? I guess those Chevy Volts are selling better than I thought.
Ever owned a GM car. I did, at least the unions haven't forced us to have to buy their crap. That's probably next. Worst car company in terms of product ever. I guess that doesn't matter because we have to save those union jobs!
Those Chevy Volts on the road are as scarce as Obama bumper stickers these days. Cash for clunkers took a lot of Obama stickers off the road..
That crap box can be yours for an MSRP of $40,000. Right up there with a new Lexus. Hmmmm... Let me think about it?
Evil Business Owner
I guess you use an accountant, because the numbers say the contract cover 48,000 workers who are there today, it is for signing the contract, not for getting hired, and it has been done for years that way.
Edward,
Thanks for clearing that up. I thought it was a signing bonus just for the potential new hires. I guess that would make it a payout of $240 million if all 48,000 workers signed?
Obama is on his way to borrow the 240 million from China.
I thought bailing out the auto industry and saving all those jobs was a good thing to do and a wize use of money, but the terms of this contract sure looks like a kick in the stomach as a thank you from the unions.
I just hope that agreement mandated building a more reliable automobile. Wait, that would take work and innovation, well shucks I guess I'll continue buying Toyota. Ironically, they have employment for life and they still manage to build a better car hands down.
Japanese workers better than American workers...see what's wrong with America folks?
Signing bonus!!...what the heck....get a signing bonus to get your job back, in a lot of instances. I think I would be extremely thankful to just once again be employed. ABSOLUTELY HILARIOUS..sticker prices going up........
Way to go America, your taxes bailed them out and they said thank you and kiss our ass. Welcome to Obama's new America. Hey treasury, you better grease those money printing machines. We're running low on remaining taxpayers.
Hell yes, they approved it along with Rich Chumpka. Riding on the back of the American tax payers all the way to the bank.
FORD just got MILLIONS from the taxpayers through a green program.
Good job workers! The republican attempt to lower your standard of living has failed!!
I don't like that either. When green is feasible (profitable) then Ford would not need to get gummit money.
The GM workers lowered everyone else's standard of living. We all will have less because of the contract, and that doesn't depend on buying the GM junk.
Lets see big Oil gets 70 Billion in tax cuts taxpayer money, what does the taxpayer get higher gas prices
Wall Street got bailed out with Billions what did the taxpayer get , lost 401K trillions of dollars
Bankers got bailed out with Billions of taxpayer money, what did the taxpayer get higher fees, no loans large layoffs
So the taxpayer helped the Auto Companies, they got paid back, saved good paying jobs, we still have made in America Cars
Keep buying those cars in the South that have low pay workers, no Benefits, no pension plan, no health Care
the foreign Auto makers love it laughing all the way to the bank on the backs of Americans.
Republicans hate the American Workers, they hate Made in America, they want to destroy the Middle Class, they love wars, they want low paying jobs, no health Care, no pensions, no rights
Republicans = Koch Brothers, Carl Rove, Dick Army, they want to own the Government, Military,Courts
So all you Middle Class, OLD, POOR Republicans keep voting Republican they are throwing you under the Bus and you are helping them do it.
You are so misinformed it is pitiful. You are either lying or just an Obamabot, oh s--, there is an oxymoron if I ever saw one. Spouting talking points is the best you have?
Heard they had to hand out the signing bonuses at lunchtime when they knew most of the union slugs would be in their cars drinking and smoking pot. Word has it that the union would not let them hand them out during work hours since most of the employees are not at their work stations. Plus some of them are very, very crabby if you wake them up....
Unions destroyed the auto industry and this will too!
It's funny liberals have nothing bad to say about
Big Union payoffs, GE no taxes and China jobs
and 500 billion to fake green jobs!oh healthcare
union and aarp payoffs! everybody i know dumped
aarp after they paid off OBOMBO so they could
sell more insurance to old people! SCAM! this
president is a lying corrupt union chicago thug!