GM promises 5,400 jobs and $7 billion in an offer to end strike with UAW
General Motors promised 5,400 jobs and a $7 billion U.S. investment Thursday to the United Auto Workers association in an attempt to end their ongoing strike, the company announced in a prepared statement.
The funds would be distributed over the next four years.
The UAW has been on strike against GM over disputes on health care and the company shipping jobs to Mexico, where the auto manufacturer is the largest employer, instead of keeping them in the United States, among other issues.
“We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways and it is disappointing that the UAW leadership has chosen to strike,” GM's statement said. “We have negotiated in good faith and with a sense of urgency. Our goal remains to build a strong future for our employees and our business.”
And, per a letter from UAW Vice President Terry Dittes, "some progress has been made."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.68 | +0.81 | +1.48% |
About half of the proposed jobs would be new and the rest would be considered “retained” because of the investment, Detroit Free Press reported. The funds are set to be invested into facilities with UAW representation, but a portion would go toward joint ventures that are separate from the union's contract with GM.
The offer reportedly includes a 2% wage increase for UAW workers for the first and third year of the contract and 2% lump-sum payments in the second and fourth years.
GM said it also offered to build assembly plants in Michigan and Ohio.
Health care is a key point in the talks, too. GM and Ford both spend $1 billion a year on employee health care, but some industry officials argue that it isn’t enough.
All terms of the contract are still being negotiated.
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UAW began its strike against GM on Sunday night. The work action has not been without controversy. At least seven union protesters were arrested at a GM plant in Tennessee.
GM’s stock was down 1 percent as of press time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.68 | +0.81 | +1.48% |