Big Government warned us about this in July.
Now comes payoff time.
While many details of the deal were not immediately divulged, the UAW press release shared some of the positive highlights of the deal:
• “Significant” investments and products for GM plants.
• Wages and benefits that “reflect the fact that it was UAW members who helped turn this company around,” said Joe Ashton, UAW vice president
• Improved profit sharing
The new jobs include opportunities at powertrain plants in Warren and Romulus, as well as Wentzville, Mo., people familiar with the talks said. GM will also reopen the former Saturn assembly plant in Spring Hill, Tenn., the people said.
Profit sharing will now be based on income from all GM’s North American operations, not just U.S. plants, a person familiar with the deal said. With the new formula, the average profit-sharing check from last year’s $5.7 billion North American profit would have been between $5,000 and $6,000, instead of the about $4,000 workers received, the person said. The union claimed profit sharing would be more transparent. Indeed, the bonuses will be based on a simple chart that lists ranges of profits and corresponding profit-sharing payouts, the person said. The bonuses will have a cap.
The contract also increases the entry-level wage, the person said.
More money for people to produce cars people don’t want. Payback to the unions, who donate almost exclusively to Democrats.
Them having their jobs saved wasn’t enough. Now we have to pay them for the privilege we bestowed upon them.
In the meantime, we’re looking at a $12bn to $18bn loss on GM, so at the same time the company is about to lose a buttload of money that pretty much no one thinks we’ll ever get back, we’re going to give the workers more.
Outstanding. Sign me up.