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September 28, 2007

GM could get labor pay savings from UAW deal: report

NEW YORK - General Motors Corp would be able to buy out as many as 24,000 UAW workers and replace them with lower-paid hires under a tentative contract agreement, according to Reuters citing a Wall Street Journal report on its Web site.

Such a potential buyout stems from a move by the union to expand the definition of non-production job classifications, the article said, citing management and union officials briefed on the pact.

GM will be able to hire at a much lower pay package janitors, landscape workers and material handlers, the report said.

It will also be allowed to define some entry-level production work and skilled-trade positions as a "non-core position," whereby they get paid about half or less of the $70-to-$75 an hour wage-and-benefit package traditionally given UAW members, the report said.

Those workers would have the opportunity later to transfer to the higher-paying production jobs, the report said.

Posted by Peter C. T. Elsworth  at 9:27 AM to GM , Unions | Permalink

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