General Motors (GM) and the United Auto Workers (UAW) have reached a new contract agreement. The new contract, which was ratified September 28, 2011 by UAW members, includes provisions that retain bargaining unit employee health and pension benefits, as well as improved profit sharing. The new contract will also result in $5,000 bonuses for bargaining unit members. Entry level bargaining unit employees will see their pay increase by $3.50/hour by 2013.
In addition to the provisions covering active bargaining unit employees, GM promised to reopen its plant in Spring Hill, TN, which has been idle since November 2009. It is estimated that this plant re-opening will bring approximately 2,000 jobs to the area and will result in re-hires for many laid off GM employees. A total of 6,400 new jobs are projected to be created as a result of the new contract. Contract negotiations between the UAW and the other two major American auto makers, Chrysler and Ford Motors, are ongoing.