Aaron Josefczyk / Reuters file
Workers install parts on the new Chevrolet Cruze car, as it moves along the Assembly line at General Motors Cruze assembly plant in Lordstown, Ohio (Ohio), in July. Unionized workers at GM have ratified a new of the four year contract.
By John W. Schoen, senior producerIn new recording contract since General Motors has a massive restructuring in the framework of a rescue by the Government, members of the United Auto workers adopted a new four-year contract with the company, will pay cash bonuses instead of automatic annual pay increases.
GM executives said Wednesday that the agreement means that the company point, maintained its current "break even", allowing the company to stay profitable vehicles with a global turnover of about 10.5 million. Last month, the automaker reported that in the second quarter profits almost by higher vehicle increased prices and strong sales abroad doubled.
Wages too shallow for approval, receive the majority of workers a number of bonuses, the total at least $11,500 in the next four years. At the heart of the bonus program includes a profit-sharing formula for workers based on company's reported results.
"This agreement the interests of workers and employees more than ever is," said GM CEO Daniel Ackerman reporter and investment analysts on a conference call Wednesday. "If employees earn share of profits the workers do." It's so easy.
Workers eligible for additional bonuses if they meet certain production targets quality. The company was also the launch pay for entry-level workers to $19 per hour, to increase about 20 percent higher than the current level.
In the context of a restructuring after the Government 2009 bailout of GM, the company bankrupt, so that some of them to cancel its crushing debt. Also cutting wages and payrolls and slash wages and social benefits, which restore profitability; in 2005, the company employed 111,000 workers at a cost of $16 billion. To reduce the workforce to less than 49,000 workers, labour costs came in 2010 to around 5 billion $.
On your part, Union leaders stressed that the Treaty commits members for the painful sacrifices to get GM rewards back on its feet.
"It is the workers and the quality of work, what you do, that they made together with the victims, that helped have to return the company to profitability." UAW President Bob King said in a statement. "Now, that GM profits again post, our members in the success of profitability share during GM on"
The Union also notes that the Treaty maintains the current level the benefits for the health and additional unlimited doctor visits for the employees for $25 numbers.
The company is still major hurdles, including a slowdown in economy, which is in car sales to food. As the pensioners struggles many older companies with large pools GM is also a under-funded pension plan, which not, been revised during the restructuring House monitored by the white.
To reduce costs, GM offers a bonus of $10,000 for eligible workers who go in the next two years in retirement. About 40 percent of the company comes hourly workers for retirement.
Although again profitable, the US auto industry is significantly smaller than it was before the 2007 recession hit. Auto sales reached in the United States at about 17 million vehicles in 2000 and kept fairly constant up to 10.5 million in 2009 fall. Increased sales in the first half of the year, but rest the critical supply terminated by the Japanese earthquake in March of parts and materials was.
Analysts had to appreciate the U.S. sales of 13 million units for 2012. But a recent decline in the growth of jobs drop consider trust and the threat of a fresh recession this goal is hard to beat.
It has prompted U.S. to locate automakers for faster growth abroad. China and South America are expected to be more than half of global light vehicle sales by 2015, create analysts at Zack's investment research.
Last week, agreement to develop a GM with SAIC Motor Corp. and build electric vehicles in China. The company expects to begin to sell the Volt in China by the end of the year. The car has driven a range of about 50 miles on a single battery charge and 300 on the gas engine.
Emerged after a public offering of shares to GM before the bankruptcy, the Government contains still half a billion GM shares as part of the company's rescue package 2009. To cover its $26 billion investment, should the Government to get over $53 per share for its holdings.The stock is currently trading at about $20 per share.
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