GM offering UAW bigger bonus, profit sharing than FCA

The No. 1 USA auto maker is also offering a $60,000 incentive to up to 4,000 eligible production employees who retire between February 1 and May 1, 2016.

Profit sharing formulas could yield more for UAW members at GM.

Haslam has long opposed the UAW gaining a foothold at the plant and told reporters Tuesday that Volkswagen faces major issues in emerging from the emissions scandal. In the FCA contract, veteran workers get $4,000, while those in the lower tier get $3,000.

The union called Fiat Chrysler’s deal “one of the richest ever negotiated” with the company, although it provides little job growth and will place a few new hires on different pay progressions than current workers. Fiat Chrysler earlier Wednesday reported North American margins of 6.7 percent. In the 2011 contracts, UAW members at GM got $5,000 and those at Fiat Chrysler received $3,500. GM workers probably wanted more, McAlinden said.

On profit-sharing, GM workers would keep the same formula they have now, the person said. It pays $1,000 per $1 billion in North American profit. The UAW a year ago narrowly lost an election to represent about 1,500 hourly employees at the plant. With an adjusted operating profit of 4.2 percent past year the deal would have paid about $3,000 compared with the $2,750 they got.

Rank and file UAW members at GM will start voting on the contract Friday. The UAW needed two tries to win ratification for a new contract at Fiat Chrysler.

The agreement also would give longtime workers their first raises in almost a decade.

Fiat Chrysler’s workers approved their agreement last week. UAW leaders renegotiated the agreement to secure bigger bonuses and a simplified pay structure.