UAW GM Strike Agreement

Published over 4 years ago

The United Automobile Workers Union and General Motors struck an important agreement within the past few days. From what I heard on the radio, its a good deal for both sides. The deal mainly focused on healthcare for retirees, with GM paying about 70% of the costs up front to the union, who will manage an investment fund to pay the health care costs.

If GM ever goes bankrupt, the union still has the dough. If health care costs continue to skyrocket as they have been, the 70% may end up being even lower. As part of the deal, GM has also committed to maintain employment levels for US auto workers, instead of sending them overseas or across our borders.

Another statistic unrelated to the deal which really surprised me was that GM pays about $25 more per hour per employee than its Japanese rivals Honda and Toyota. No wonder why Japanese cars are cheaper!