Members of United Auto Workers at General Motors are expecting raises and bonuses while the country’s largest automaker is expecting to meet increased truck production goals as a proposed contract moves closer to ratification.
According to an article published Thursday in the Detroit Free Press, UAW members agreed by a narrow margin on Wednesday night to accept GM’s latest labor contract. The agreement cools heated news from earlier that day in which the UAW had reported that it was bracing for a strike.
The agreement is good news for GM. Wardsauto.com reported that GM plans to increase truck production in the fourth quarter by 8 percent. This follows strong sales of trucks and SUVs, such as the Chevy Silverado and Cadillac Escalade.
Compared to sales in October 2014, GM reported a 16 percent increase for October 2015. The Detroit automaker largely attributes increased sales to its trucks and SUVs.
In its negotiations with GM, which will end Saturday, UAW is representing 52,700 U.S. factory workers, all of whom will receive an $8,000 signing bonus plus increases in hourly wages if the agreement is ratified.
The UAW’s last strike against GM was in 2007. A new strike would have halted productivity and cost the company $243 million in revenue each work day.