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AP Sources: Factory workers to get $5K signing bonus, profit sharing, job promises in GM deal
DETROIT (AP) ' The United Auto Workers union won $5,000 signing bonuses, the possibility of sweeter profit-sharing checks and guarantees of more union jobs as part of a new four-year contract with General Motors Co., two people briefed on the talks said Saturday.
The deal, reached late Friday, also includes a $2- to $3-per-hour-pay raise for entry-level workers over the life of the contract and the promise of more jobs, the people said.
Both persons asked to remain anonymous because the details of the contract haven't been reviewed by all local union leaders.
In addition, workers could get profit-sharing checks that are larger than the roughly $4,000 they received based on the company's earnings last year. But the formula was changed so it is based only on GM's North American financial results, said the people.
The GM deal will serve as a template for contracts that still must be negotiated with Chrysler Group LLC and Ford Motor Co. It would set the pay and benefits for 112,500 U.S. auto workers. It also will set the bar for pay and benefits at nonunion auto companies and other industries across the country.
The contract is the first since GM and Chrysler received government bailouts to make it through bankruptcy protection in 2009.
The UAW and GM would not give details of the contract. Union President Bob King said Friday that he won't talk about them until local union leaders are briefed on the pact Tuesday in Detroit.
Workers have to approve the contract before it can take effect. A vote is expected within 10 days.
The union said in a statement Friday that the pact includes some of its major goals, including improvements in profit-sharing, new jobs and better health care benefits.
The deal also will include creative ways to cut GM's hourly labor costs, which at $56 are still higher than those at nonunion U.S. plants owned by foreign competitors.
GM was the first of the Detroit Three to reach agreement with the UAW. Chrysler is likely to be next, followed by Ford, where little progress has been made in negotiations so far.
The UAW announced the GM agreement just after 11 p.m. EDT Friday, after a little more than seven weeks of closed-door bargaining.