The Corvette plant in Bowling Green, Kentucky, was scheduled to be redeveloped this month to build the highly anticipated Stingray 2020, but this will be delayed as it finalizes orders for the 2019 model. When the National Council reviews the terms of the agreement, it will also decide whether nearly 50,000 workers should remain on strike or whether they should return to work before accession to the Agreement is ratified. In the 2019 contract, GM committed to invest $5.7 billion in five plants and $2 billion in the rehabilitation of U.S. plants during the four-year contract. The $7.7 billion commitment is equivalent to 9,000 new and maintained jobs. Among those investments is the Detroit-Hamtramck plant, which has removed GM from the slow motion list and now wants to use it for the construction of brand new electric trucks and pickup trucks. If the provisional agreement does not get a majority of votes, it is again up to the rope for GM negotiators and the GM UAW negotiating committee to reach agreement on the objections raised. As part of the agreement, the Warren Tech Center will receive a new vehicle program, $200 million in investments and the maintenance of approximately 75 jobs. Lansing Delta and Spring Hill, Tennessee, assembly plants will receive a next generation of mid-sized SUVs worth $1 billion and 5,000 jobs.
UAW will negotiate a new interim agreement with Ford, using the GM contract as a model. In the 2019 contract, employees receive a ratification bonus of $11,000. Temporary public servants receive a ratification bonus of $4,500. In 2019, there have been no changes to health care through the 2015 contract. No additional costs were imposed on members who pay 3% of their health care. The automaker originally wanted to increase the share of workers to 15 percent, a proposal it abandoned before the contract expired last month. For now, the work stoppage is underway, although now that the UAW-GM National Council has sent an interim agreement to members, employees of GM suppliers may soon return to work. However, a ratified treaty is not guaranteed. They do not have to consider in the preliminary agreement more than 48,000 members this week.
But they will receive increases and bonuses that exceed current inflation, the removal of the $12,000 cap on profit distributions and a record $11,000 bonus — a much more lucrative contract than their agreement four years ago.