It appears the hourly workers who belong to the United Auto Workers aren’t the only GM employees who are going to benefit from the new contract tentatively agreed to between the union and the carmaker.
After reaching a tentative deal that provides significant pay raises to hourly workers, GM announced it will lift wages and increase retirement benefits for its salaried workers, the Detroit-based automaker confirmed, according to The Detroit News.
GM’s salaried workerse next year will receive a 3.5% pay bump, while the automaker also increases its 401(k) contribution by 2 percentage points. GM employs 43,500 salaried workers in the United States.
In a statement, GM spokesperson Kevin Kelly said the automaker “provides competitive compensation and benefits for salaried employees, benchmarked across industries. Next year, GM will increase base pay and company matching for 401(k) plans, as well as offer enhanced healthcare benefits.”
The Detroit automaker reached a tentative agreement with the United Auto Workers last week, ending a 46-day long strike at some of GM’s plants. The tentative contract agreement still has to be ratified by the UAW’s membership, a move recommended by the union’s National GM Council.
GM’s deal, like those with Stellantis NV and Ford Motor Co., includes 27% compounded base wage increases through April 2028, The News reported. It’s slated to cumulatively raise the top wage by 33% to more than $42 an hour when accounting for cost-of-living adjustments, according to the union. The starting wage at GM will increase by 70% compounded with estimated COLA, to over $30 an hour.
