GM to pay UAW workers around $12 million in bonuses

Article by Christian Andrei, on December 9, 2011

About 10 weeks after General Motors Co. ratified a new labor contract with the UAW, the automaker announced that the union hourly employees have hit vehicle-quality targets and are eligible to receive around $12 million in bonuses. GM spokeswoman Kim Carpenter said that the Dec. 16 paychecks of these eligible employees will carry the $250 bonus.

She said that a "vast majority" of GM’s 48,500 UAW-represented workers are eligible but she declined to provide specific figures.

Ford spokeswoman Marcey Evans said that the bonuses will be received by its 41,000 UAW workers this Friday. She said that these bonuses are being given because its U.S. plants achieved competitive targets. GM CEO Dan Akerson said that GM's new four-year labor contract sustains the company’s competitiveness by just marginally raising the automaker’s $5 billion annual labor tab.

Senior workers won't be getting a base wage increase and the union has agreed that some pay will be based on GM's profitability. Carpenter added that annual quality bonuses rely on GM's target for incidents per 1,000 vehicles that were in service for two months. She announced that the company is 98% of its target, which means that the payout is $250 per eligible UAW employee. [source: GMInsideNews]

Topics: gm, uaw

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