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GM workers would get pay increase, bonus under proposed UAW deal

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GM workers would get pay increase, bonus under proposed UAW deal

General Motors Co. workers would get a pay increase and deal ratification bonus under a proposed agreement between the Detroit automaker and the United Auto Workers, according to the union.

Three GM plants would remain unallocated, according to the deal summary, but a fourth facility would stay open to produce a new vehicle.

The automaker announced in November 2018 that it would close plants in Warren and Lordstown, Ohio, Baltimore and Detroit-Hamtramck. However, the Detroit-Hamtramck plant will stay open to build GM's electric pickup truck, according to The Detroit Free Press.

GM declined to comment, and the UAW did not immediately respond to S&P Global Market Intelligence.

GM's UAW-represented workers would get an $11,000 bonus if the proposed agreement is ratified, and temporary workers would receive $4,500, according to the deal summary.

The four-year contract would also bring wage increases of 3% in the second and fourth years and 4% lump-sum payments in the first and third years.

The strike will continue while the workers vote on the proposed agreement, according to CNBC.

Voting on the proposal will begin Oct. 19 and is expected to be completed by Oct. 25, CNBC reported, citing UAW spokesman Brian Rothenberg.

More than 48,000 GM workers have been on strike since Sept. 16 after the automaker and union failed to reach a deal. The strike caused a shortage of auto parts for GM in North America, prompting temporary layoffs.

The Center for Automotive Research said the strike has cost GM about $450 million a week and the UAW about $12 million a week from strike pay costs. On Oct. 12, the UAW increased GM workers' weekly strike pay to $275 from $250. Other experts estimated GM's losses from $50 million to $100 million per day of the strike.