GM contract includes assistance for former Lordstown workers
As widely reported, the proposed UAW-GM contract does not provide new products for idled GM plants in Lordstown, Baltimore Transmission, or Warren Transmission. However, the pact does call for Detroit Hamtramck to remain open with a new product.
An assistance package has been negotiated for UAW members from Baltimore Transmission, Lordstown Assembly and Warren Transmission employees who were active on November 26, 2018, and are working at another GM facility, or those who declined a placement offer.
The following options are available according to a union document obtained by 21 News.
1. Retirement Incentive Payment
Retirement-eligible employees will be offered a payment of $75,000 (production) or $85,000 (skilled) if they exercise their right to retire
2. Grow-In to Retirement
Employees with 28 but less than 29 years of service on September 14, 2019, will be eligible for payments of $3000/month if they agree to retire at 30 years of service
Employees with 29 but less than 30 years of service on September 14, 2019, will be eligible for payments of $3250/month if they agree to retire at 30 years of service
Employees growing-in to retirement will be placed on leave while receiving these payments and will continue to receive health care benefits until commencing retirement at 30 years of service
3. Buy-Out – Employees who are not eligible for options (1) or (2), who agree to terminate their employment and benefits (other than vested pension benefits), will be offered:
- Employees with 0-5 years of service: $7,500
- Employees with 5-10 years of service: $22,500
- Employees with 10-20 years of service: $67,500
- Employees with 20-27 years of service: $75,000
4: Additional for members who declined placement who have been placed on so-called L34 status.
Employees who declined placement who don't choose options (1), (2) or (3) will also be eligible for one of the following:
One-time placement opportunity
Mutually Satisfactory Retirement pension benefit at age 50 with 10 years of service (employees may “grow in” to MSR-eligibility while on L34 status)
5. Training Assistance
Employees electing options (2), (3) or (4) will be eligible for tuition assistance of up to:
- 1-3 years of service: $6,400
- 3-4 years of service:$7,400
- 4+ years of service:$8,400
Relocated Employees – Employees electing options (1), (2) or (3) who accepted transfer offers will not be required to repay any relocation allowances they received.
The contract also includes no change in healthcare plans, elimination of the profit-sharing cap, lump-sum payments of 4% in the first and third years of the contract, and a three percent increase in base wages in the second and fourth year of the contract.
As of this writing, the GM Council made of UAW local presidents and chairpersons had not revealed whether or not they would submit the proposed pact to the rank-and-file for a vote.