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GM’s UAW Pact Includes Pay Increase for Entry-Level Workers

by News on September 18, 2011

in Union Politics and Transparency

By Sharon Terlep/The Wall Street Journal

General Motors Co.’s tentative four-year labor contract reached Friday with the United Auto Workers will raise pay for entry-level workers and include a signing bonus of about $5,000, people familiar with the deal said Saturday.

The deal will create a new profit-sharing formula and tie workers’ pay to vehicle quality, these people said. GM also agreed to reopen an assembly plant in Spring Hill, Tenn., which had been idled as part of the auto maker’s restructuring.

A key goal of GM’s heading into the contract was to create a new system of worker compensation more directly tied to performance.

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