United Auto Workers to General Motors: Thanks for the Bonus and Raise
General Motors (NYSE:GM) has presented a new pact to the United Auto Workers that will protect profits but not impress their investors. If the four-year contract is accepted, the company will pay union members a $5,000 bonus per person as opposed to the $8,000 to $10,000 desired and a $2 to $3 an hour entry-level pay increase.
GM (NYSE:GM) still needs to present the deal to the union. Union members have noted the contract changes are tied to the company’s earnings and it will bring variable wages. GM has seen six quarters of rising profits and in the first six months of the year, regained its title as the world’s biggest automaker. Ford (NYSE:F) and Chrysler are still at the bargaining table with the UAW. Toyota Motors (NYSE:TM) and Honda Motor Company (NYSE:HMC) have avoided this round of bad press.
GM’s stock (NYSE:GM) is up 1.06 % to $22.85 on the news. Shares are down 38.01% year to date. The stock has traded in a 52-week range between $20.88 and $39.48.