© 2022 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

AP Source: GM's costs rise little in new UAW pact

By AP

DETROIT –

A person briefed on the new contract between General Motors and the United Auto Workers union says it will increase the company's fixed costs by only a small amount.

The tentative agreement on the four-year deal was reached late Friday. It includes a $5,000 signing bonus and the possibility of sweeter profit-sharing checks for GM's 48,500 factory workers. Most of them aren't like to get any pay raises.

The person says that because recurring costs were contained, GM still will be able to break even in a depressed U.S. auto sales market of around 10.5 million vehicles. The person did not want to be identified because the terms of the deal haven't been released to union members.

Members will vote on the pact in the next week or so.

News from WKAR will never be behind a paywall. Ever. We need your help to keep our coverage free for everyone. Please consider supporting the news you rely on with a donation today. You can support our journalism for as little as $5. Every contribution, no matter the size, propels our vital coverage. Thank you.