Introduction:

A tentative deal between General motors, Co and the United Auto Workers union offers a richer payout for GM’s 48,500 workers than the previous ratified contract with General Motors Co in2007. This four-year labor contract improves health care and enhanced profit sharing and will create jobs. The UAW expects ratification of the GM deal by 27th September2011.

Key findings of the report:

➢ Wages for entry-level workers will rise from about $14 an hour to $16 and $16 an hour to as much as $19 an hour.

➢ UAW workers get a $5,000 bonus when deal is ratified, that would cost Detroit based automaker $242.5.

➢ Profit-sharing plan will be enhance significantly and this is based on North American profits now, instead of just the U.S. earnings.

➢ The deal creates or retains 6,400 jobs through $2.5 billion in plant investments that recognized the reality of today’s market place. And its help hire back laid-off members and return work to the U.S. from overseas.

➢ GM's plant in Spring Hill, Tennessee, will start Continue to produce 4-cylinder engines at that site, about 40 mile south of Nashville and kept running a stamping plant and paint operation.

➢ Weaken health-care coverage provide more facilities than before and won “significant improvements.”

Positive & negative side of GM and UAW contract:
After GM's emergence from bankruptcy in these uncertain economic times, Its able to do a tentative agreement with UAW that guarantees good American jobs at a good American company. The members made great sacrifices to save GM when the auto industry and the American economy were on the brink of collapse. As a result of this tentative agreement, UAW members will share in the company's success.
This tentative contract provides jobs for UAW members who have been laid off over the last several years, creates thousands and