The United Auto Workers (UAW) has successfully negotiated a significant expansion of a buyout program for General Motors (GM) production workers, union Vice President Mike Booth announced yesterday. This development allows 1,412 GM production workers to receive a buyout offer, a substantial increase from the initially eligible 748 employees under the existing UAW-GM contract.
The contract, effective from January 2024 through April 2028, originally stipulated that GM would offer three Special Attrition Programs (SAPs) during this period. The SAP provides a $50,000 lump-sum pre-tax retirement incentive. The agreement between UAW and GM involves mutual decisions on the offering’s timing, size, and scope.
Booth hailed the expansion of eligibility as a major victory for the union. “When we announced this first phase, many members spoke about expanding eligibility. Today, I am excited to announce that we have won SAPs for all 1,412 GM production workers who signed up. These workers will immediately be eligible to receive the $50,000 retirement bonus, effective June 1st, July 1st, or August 1st,” Booth stated.
However, Booth noted that the union has not yet secured immediate eligibility for all 545 skilled trades workers who want to take the offer. Currently, only 142 skilled trades workers are immediately eligible. “We’re still fighting to expand that number. GM faces a shortage of skilled trades workers, which will require creative solutions and an expansion of their apprenticeship programs,” Booth said. “We will continue to advocate for our skilled trades members who wish to retire. Every eligible member will have the opportunity to receive the $50,000 SAP during the life of this contract.”
GM spokesperson Kevin Kelly expressed the company’s appreciation for its employees’ service. “We thank all participating employees for their years of service and contributions to GM. We have committed that all interested eligible employees will have the opportunity to receive an SAP during the life of this agreement,” Kelly said in a statement.
The UAW has also negotiated similar buyout programs for union members at Ford and Stellantis. These programs allow an unlimited number of eligible production and skilled trade members to receive a $50,000 retirement incentive.
The UAW announced that GM will reopen the Special Attrition Program in Q4 this year, ensuring more workers can take advantage of the retirement incentive as the contract progresses.
