USA Today: GM, UAW will use more low-wage workers to make new Aveo in U.S.

[Omaha Steve]

http://content.usatoday.com/communities/driveon/post/2010/10/gm-uaw-will-use-more-lower-wage-workers-to-make-new-aveo-in-us/1

Oct 05, 2010


By GM, Wieck

GM and the UAW have a agreed to use more lower-paid workers at the closed Michigan plant being retooled to build a new Chevrolet Aveo in an attempt to profitably build a subcompact car in the U.S. The car is due out in the U.S. and Canada next year.

Up to 40% of the union workers at the Lake Orion plant will get so-called "tier two" wages, Mike Dunn, chairman of UAW Local 5960, told Drive On colleague Chrissie Thompson of the Detroit Free Press (her story here). While 60% will get the regular UAW wage of $28 with full benefits, the rest will get about half that -- the rate paid new hires -- though they'll get full benefits, Dunn said.

The deal, first reported by Automotive News here (subscription site), is the first time the new wage will go to current union members and runs through 2015. Idled Lake Orion workers who don't want to work for the lower wage can join the pool seeking transfers within GM, Dunn said. GM spokeswoman Kim Carpenter declined to confirm details.

The government, in its bankruptcy bailout of GM, called for such a deal:

FULL story at link.