UAW Wins Product Guarantees,

Moratorium on Outsourcing

Jobs Protected

A key goal for UAW bargainers during these negotiations was to retain and expand the employment available to UAW members at GM’s U.S. facilities. We succeeded in winning unprecedented guarantees to allocate specific products to current GM facilities. These groundbreaking commitments not only protect the jobs of our members, but also maintain economic opportunities in the communities in which GM does business.

GM made binding commitments to retain the current product allocation at 16 UAW-represented assembly plants through the life of this agreement. Our bargaining team also won commitments for investment and future product allocation for 12 of these U.S. assembly plants, with two more assembly plants allocated future product depending on the demand and the business case for the particular product. These same commitments extend to a majority of powertrain, metal fabrication and service parts operations.

For the first time ever in a national agreement, GM has committed to the UAW that specific vehicles will be built in specific plants, and the life cycle of these products has been identified. In several instances, the commitments extend beyond the life of the current agreement to include the production of the next generation of vehicles through the next product cycle.

These production commitments, along with a moratorium on outsourcing, protect the jobs of tens of thousands of UAW members at GM. These commitments will have a positive effect on the employment of thousands of workers at related supplier plants and will help maintain the economic contribution of GM facilities to the local and regional economies in which they are located.

By winning specific allocations for vehicles in UAW-represented assembly plants (see list on next page), the agreement also protects UAW jobs in related powertrain, metal fabrication and service parts operations (SPOs.)

Moratorium on Outsourcing

The company has agreed to a moratorium on outsourcing for core vehicle production and noncore operations in areas such as subassembly and cockpits. Work in noncore areas representing in excess of 16,000 UAW-represented jobs will be retained as a result of GM’s agreement to this moratorium, which will last for the term of the agreement, or during the product lifecycle, whichever is longer.

GM Commits to Insourcing

In response to our bargaining team’s demand that GM take action to maintain and expand its U.S. manufacturing base, the company has agreed to insource work totaling 3,000 jobs during the life of the agreement. In addition, more than 3,100 jobs related to noncore product work will be evaluated for insourcing.

Hiring Obligations and Area Hires

During these negotiations, the parties agreed that the hiring obligations under the 1999 and 2003 UAW GM National Agreements were fulfilled by flowback of Delphi workers to GM and the offer of permanent jobs to workers who are currently temporary employees.

In order to offer greater flexibility to UAW-represented workers, the company also agreed to expand the area hire for GM Powertrain in Tonawanda, N.Y., to include Delphi Rochester, and to expand the area hire for General Motors Wilmington, Del., to include GM Powertrain Baltimore.

SUB Increased and Improved

Our UAW bargaining committee secured an agreement that increases the JOBS and SUB funding cap from $3.9 billion to $4.1 billion.

In addition, the maximum benefit will be increased from $190 to $200 weekly for a worker on a qualifying layoff who is not receiving a state system benefit per Article I, Sec. 1 (b), or who refuses a company work offer that the worker has a right to refuse pursuant to the local seniority agreement.

Because the Guaranteed Income Stream (GIS) program has been dormant for some time, the parties agreed it will be eliminated. However, in the event that these funds are exhausted before the expiration of the 2011 agreement, the GIS program will be immediately reinstated under the terms of the 2003 Supplemental Agreement (Exhibit E).

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