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AP Source: New contract between GM and UAW has only minimal increase in company's fixed costs
DETROIT (AP) ' A person briefed on the new contract between General Motors and the United Auto Workers union says it will increase the company's fixed costs by only a small amount.
The tentative agreement on the four-year deal was reached late Friday. It includes a $5,000 signing bonus and the possibility of sweeter profit-sharing checks for GM's 48,500 factory workers. Most of them aren't like to get any pay raises.
The person says that because recurring costs were contained, GM still will be able to break even in a depressed U.S. auto sales market of around 10.5 million vehicles. The person did not want to be identified because the terms of the deal haven't been released to union members.
Members will vote on the pact in the next week or so.